Somfy – Results for Financial Year 2008
Supervisory Board of Somfy examined the annual accounts for the company and
its subsidiaries for the year ending on
Consolidated figures FY 2008 FY 2007 Change
in EUR million 2008/07
Sales 749.4 720.2 +4.0%
Operating current income 123.9 132.3 -6.4%
Non current items (2.8) (1.2) Ns
Operating income 121.1 131.2 -7.7%
Income before income tax 108.6 129.7 -16.2%
Income tax (24.1) (38.8) -38.0%
Share of associate companies' earnings 1.9 13.1 NS
Net income 86.4 103.9 -16.8%
Net income excluding contribution from 86.4 93.2 -7.3%
Faac
Cash flow from operating activities 123.9 119.7 +3.5%
Notes: Somfy is currently organised into two separate branches: Somfy
Activities is dedicated to the Group’s core business of automating openings
and closures in residential and commercial buildings; Somfy Participations is
dedicated to investing and participating in industrial companies outside the
core business of the Group
Faac was withdrawn from the group’s consolidated scope on
2008 and is now recorded as a capital asset available for sale.
The companies Zurfluh Feller, Ciat and Sirem, respectively 100%, 40% and
87,5% owned, became part of the consolidated scope during the second half of
2008.
Sales
Group sales reached
4.0% in real terms and of 1.2% at constant rates and on like for like.
- Sales for Somfy Activities came to EUR691.0M. For the full
year, this represents an increase of 1.0% for comparable data with a
decline from first half to second half as a result of the slowdown in
the construction market in several countries.
The downturn was particularly felt in North and
down respectively by 4.9% and 0.5%, and in America, although growth there
remained positive at +1.1%.
On the other hand, growth continued to be strong in some emerging
markets:
6.3% and 12.0% for the year.
growth in the last months, was down by 1.6% on the year.
Overall, the negative trend on the group’s markets intensified in the
last quarter with sales down by 4.8%.
- Somfy Participations made significant investments in 2008.
Turnover at EUR58.4M includes Cotherm (12 months), and the newly
consolidated companies Zurfluh Feller (six months) and Sirem (three
months). The share of Ciat (40%) is equity accounted and its turnover
(EUR365.8M in 2008) does not contribute in the Group sales.
Results
Group operating current income for the year went from
EUR123.9M
Somfy Activities current operating result is down by 9.1% to EUR117.6M:
- Gross margin rate is up, even though raw material price
decreases did not take effect until the end of the year and sale
prices were down by 2%. The growing volumes in overseas production
sites, increased sourcing in low cost countries and a better product
mix (higher share for radio) have been the main drivers of this
improvement.
- In spite of this, in a low growth context, increases in
fixed costs (depreciation and labor) due to the deferred impact of
investments and recruiting for the sales and product development teams
in 2007, could not be totally compensated.
- Somfy Participations operating current income is EUR6.3M,
against EUR2.9M the previous year, benefiting from the consolidation
of Zurfluh Feller and Sirem, and the growth in income at Cotherm.
Taking out Faac’s contribution in 2007 (
in 2008, the consolidated net income is down by 7.9% to
into account an increase in financial charges, attributable to increased debt
and to the volatility of hedging instruments, and a reduced tax burden.
The reduced tax rate is mainly due to the increase in business outside
Before investments, the group continues to generate cash substantially,
with cash flows from operating activities increasing by
Financial situation
Industrial and financial investments for the year reached
correspond in large part to the shares bought in Ciat and Sirem, the
acquisition of Zurfluh Feller and the increased stake taken in Agta Record.
They were financed partly by internal resources with the balance covered by
MT borrowings.
Net debts thus stand at
represent 11.4% of equity, a figure that testifies to the Group’s solid
balance sheet. .
Dividends
Considering the current uncertain context, the Board will propose to the
forthcoming Shareholders’ Meeting the distribution of dividends of
per share, 13% less than the previous year.
Outlook
In the current climate the company plans to intensify its policy of
adapting costs and optimising processes and to pursue its strategy of
consolidating existing positions and conquering new markets.
Actions undertaken in Somfy Activities, right from the first signs of the
slowdown, are testimony to the company’s determination to control and adjust
costs (hiring freeze in
in
are maintained at high levels to enable the company to strengthen its
leadership position, particularly in high growth segments like energy saving,
and so to come out of the crisis even stronger. Likewise, the strong balance
sheet means the company can pursue necessary investments and plan for
operations of external growth that will extend its product portfolio and its
sales distribution networks.
The objective for Somfy Participations is to add value to the portfolio
of existing participations and to pursue an active, value creating investment
policy that targets industrial companies where the group understands the
business model and shares the same values. The short-term priority will be to
integrate recently acquired companies and to set up the necessary management
and control systems.
Profile
Somfy Activities is the world leader in motors and controls for openings
and closures in residential and commercial buildings. In percentage of sales
in 2008, its main markets are
(14%),
Agenda
Publication of first quarter sales:
SOURCE Somfy