OREANDA-NEWS. In 2014/15, Carlo Gavazzi recorded an increase in revenues of 1.9% and bookings of 0.9% in local currency in 2014/15, on the back of solid sales in key markets and the successful launch of new products.

The decision of the Swiss National Bank of January 15, 2015, to remove the EUR/CHF floor of 1.20 resulted in some declines in the Carlo Gavazzi Income Statement. Operating revenue in Swiss Francs decreased by 2.3% to CHF 137.2 million (CHF 140.5 million in 2013/14). The Group recorded bookings of CHF 136.6 million (CHF 141.3 million in 2013/14), resulting in a book-to-bill ratio of almost one.

Gross profit decreased by CHF 2.2 million to CHF 75.9 million, resulting in a gross margin of 55.3% (55.6% in 2013/14). Operating expenses decreased by CHF 0.7 million from CHF 61.9 million in the previous year to CHF 61.2 million. This resulted in operating profit (EBIT) of CHF 14.8 million, compared to CHF 15.7 million (-5.7%) in the previous year. Group net income reached CHF 12.3 million (+9.8%) against CHF 11.2 million in the previous year mainly because of an exchange gain of CHF 1.0 million due to the weakening of the Euro against the US Dollar.

At March 31, 2015, shareholders’ equity stood at CHF 88.5 million, giving an equity ratio of 73.2% with a net cash position of CHF 45.0 million. Having assessed the results, the Board of Directors will propose to the Annual Shareholders’ Meeting that the Company pays a dividend of CHF 12.00 per bearer share and CHF 2.40 per registered share for the reporting period, corresponding to a pay-out ratio of 69.5%.

Growing sales in Europe

Sales developed at different rates in the automation market across the three geographical regions. Thanks to a slight recovery in overall market conditions, the result in Europe was 1.9% above the previous year in local currency.

Sales in Asia-Pacific were stable in local currency compared to the previous year thanks to solid business developments with distributors and OEMs. In North America, sales were slightly down compared to the previous year even though sales and marketing activities were strengthened towards distributors and dedicated initiatives were taken in the industrial and building automation markets.

The geographical distribution of revenue remained stable, with sales outside Europe reaching 32.0%, with North America and Asia-Pacific accounting for 17.7% and 14.3%, respectively.