Schaffner to implement measures to increase earnings – operating loss expected in the first half of the year

Media Release

Schaffner to implement measures to increase earnings – operating loss expected in the first half of the year

Luterbach, 10 March 2016 – The Schaffner Group intends to achieve the EBITA margin target of 8% defined in the 2020 strategy within 24 months. In light of the current difficult market situation, Schaffner will accelerate its efforts to relocate production, sustainably reduce material costs and streamline fixed cost structures, with the aim of achieving an improvement of around CHF 5 million in operating profit (compared with FY 14/15) as early as the next fiscal year. Overall, Schaffner expects the implementation of this program to generate one-off costs of around CHF 4 million in the current fiscal year. The Automotive division, which is performing extremely strongly and is already exceeding its medium-term targets, is excluded from the measures.

As communicated in the presentation of the 2014/15 annual results, the Schaffner Group began the current fiscal year with a drop of around 9% in new orders. The global market environment has remained difficult in recent months. Schaffner now believes that earnings in the first half of this year will not be able to match the previous year's level, and an operating loss (EBITA) is expected. Schaffner will publish its full half-year report on 12 May 2016.

As agreed with the Board of Directors, the Head of the Power Magnetics division, Eduard Hadorn, is to step down from his role and from the Executive Committee with effect from 31 March 2016. He will take charge of the strategic project to develop Schaffner's business in the growth market of India. Until a successor is appointed to head up the Power Magnetics division, CEO Alexander Hagemann will take charge of the division on a temporary basis. The Board of Directors would like to expressly thank Eduard Hadorn for his great commitment to the Schaffner Group, and in particular for successfully developing the business in China.

Financial calendar

12 May 2016

Publication of half-year report 2015/16 (half-year results)

6 December 2016

Publication of annual report 2015/16 (full-year results)

12 January 2017

21st Annual General Meeting

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