Compared to 2015, net profit virtually doubled to CHF 133.8 million in 2016 due to operational improvements and the gain from disposal of the UGN business in Chicago Heights. The company also increased year-on-year net sales in local currencies by 6.8%, net sales in Swiss francs rose by 3.2% to CHF 2‘152.6 million. The EBIT margin was raised by 0.6 percentage points to 8.2% which equals a new record high.

Sales growth above market level

Following a prior year lacking in momentum, the automotive industry picked up again in 2016. With 93 million light vehicles produced worldwide and growth of around 5%, an upward trend was recorded, albeit with an intensity that varied greatly from region to region. Production volumes in Eastern Europe virtually stagnated, while significant growth was recorded in Western Europe.

After an already strong previous year, North America only recorded a slight growth in volumes. Mainly driven by the growth market of China, automobile production in Asia was greater than in other regions, with gains of over 7% on 2015. Automobile manufacturers and suppliers in South America remained affected by the ongoing economic crisis in 2016, which resulted in a further year-on-year drop in vehicle production.

However, thanks to high production volumes and corresponding sales increases in Asia, Autoneum was able to offset weaknesses in demand in other regions and thus increase year-on-year net sales in local currencies by 6.8% in 2016. Net sales in Swiss francs rose by 3.2% from CHF 2‘085.9 million to CHF 2‘152.6 million.

Profitability increased

With an EBITDA margin before special effects of 11.4% in 2016, Autoneum once again achieved a significant profitability increase compared to the previous year (2015: 10.7%). EBITDA rose by 9.8% to CHF 245.0 million. EBITDA after special effects summed up to CHF 278.1 million. EBIT also rose significantly before special effects to CHF 175.6 million, which corresponds to an EBIT margin of 8.2%. This increase of 0.6 percentage points on the previous year caused the EBIT margin to reach a new record high in a full year.

Continuous efficiency increases in production, almost maximum capacity utilisation in Europe and low raw material prices in Europe and Asia contributed to this further improvement in the result. EBIT after special effects amounted to CHF 204.5 million.

High investments securing profitable growth

In order to also grow profitably in the future, Autoneum invested heavily in expanding the capacities of existing facilities, in vertical integration and in the introduction of new technologies at various sites across the world in 2016. This included, among others, a third global production line for the semifinished material of Ultra-Silent in Gundernhausen, Germany, and additional carpet production lines in the USA, Mexico and China.

Investments were also made in a new development center at the future North America headquarters in Novi (Michigan), USA. In 2016, the total investments of the Group amounted to CHF 138.4 million (2015: CHF 120.7 million).

Outlook

For 2017, Autoneum anticipates net sales growth in local currencies of 4% to 5% in line with its mid-term financial targets. This growth looks set to vary by region. While Business Group Europe is likely to exceed the mid-term target, net sales of Business Group North America should remain at the previous year's level due to softening demand.

In line with the strategy, double-digit net sales growth at the high level of 2016 is expected for Business Group Asia, thus being well above the market. The continuation of the restructuring measures in South America should lead to a further improvement in earnings of Business Group SAMEA. Despite the challenging market environment, Autoneum expects to maintain the EBIT margin achieved in 2016.

www.autoneum.com