Gurit Reports Net Sales Growth and an Operating Profit Margin for Fiscal Year 2017

Gurit reported net sales of CHF 360.5 million for the full year 2017. Strong growth in Tooling and Composite Components offset the impact from the decline of newly installed wind capacity, in particular in India and China, and lower build rates in the Middle-Eastern construction industry in 2017. Gurit achieved an operating profit of CHF 35.9 million in 2017 (10.0% of net sales) and net profit amounted to CHF 24.9 million for the full year 2017. Gurit’s Composite Materials Business achieved mixed results in its various market areas. In Wind, it suffered from the demand halt in the Indian wind energy industry as of spring 2017 and a lower demand in the wind energy industry in China compared to the prior year. Net sales to the wind market decreased by 13.9% (currency-adjusted: ‑13.8%) to CHF 128.2 million in 2017. Material supply to other material markets slightly increased by 1.3% in reported Swiss francs (currency-adjusted: 1.8%), mainly due to higher material sales to the marine and industrial sectors. In total, the Composite Materials Business achieved full-year sales of CHF 246.4 million in 2017. This represents a decrease of 7.2% (currency-adjusted: -7.0%) compared to full-year sales of CHF 265.6 million in 2016. Gurit’s Composite Components Business was able to return to the growth track based on a number of new projects won and some of them entering into production in 2017. In total, the Composite Components Segment achieved net sales growth of 28.3% (currency-adjusted: 31.5%) to CHF 22.3 million in 2017. Gurit’s Tooling Business took benefit from the ongoing demand for molds for longer wind blades to build ever more efficient turbines as well as the winning of two more global key customers. Net sales thus increased by 33.1% (currency-adjusted: 35.5%) to CHF 91.8 million in 2017 compared to net sales of CHF 69.0 million in 2016. In total, Gurit currently expects to achieve low single-digit revenue growth and profitability at the upper level of the Company’s target operating profit margin range of 8%-10% for the fiscal year 2018.