DGAP-News

Schweizer Electronic AG: Business situation stabilised again

DGAP-News: Schweizer Electronic AG / Key word(s): Quarterly / Interim Statement Schweizer Electronic AG: Business situation stabilised again 06.11.2020 / 08:00 The issuer is solely responsible for the content of this announcement. Schweizer Electronic AG:

- Business situation stabilised again

- Cost reduction programme successfully implemented

- Forecast confirmed for the 2020 fiscal year

Schramberg, 6 November 2020 - The business development of the SCHWEIZER Group stabilised again in the third quarter. The positive revenue momentum for this period came predominantly from the automotive sector. After a sharp drop in sales in the second quarter, sales with SCHWEIZER's largest customer group rose again significantly in the third quarter.

With a turnover of EUR 23.6 million (2019: EUR 34.1 million), sales increased by +31.7 percent in the third quarter compared to the second quarter, which was weak due to the pandemic. As a result, total sales for the first three quarters of 2020 amounted to EUR 69.0 million, which corresponds to a decline of -26.8 percent compared to the previous year. The new Jintan/China plant, which went into production successfully in the middle of the year, generated sales of EUR 4.1 million in the first 9 months.

Incoming orders in the third quarter amounted to EUR 23.4 million, while delivery schedules were largely reduced in the second quarter. Incoming orders in the first three quarters thus totalled EUR 38.7 million, which corresponds to a decline of -36.2 percent compared to the same period in the previous year. The order book at the end of the third quarter amounted to EUR 101.7 million (31/12/2019: EUR 126.7 million).

Non-recurring effects and low utilisation burdened profitability

In the second and third quarter of 2020, short-time work was carried out both for production and administration in order to reduce the break-even point of the Schramberg plant. In order to counteract the impact of declining business volume and declining margin income, numerous saving measures were already implemented in personnel and material costs in the last financial year and continued in the reporting period. Compared to the reporting date of September 2019, the number of employees in Schramberg was reduced by around 10 percent at the end of the third quarter of 2020.