SCHOTT Returns to Profitability

SCHOTT looks back on a difficult but, nevertheless, satisfactory fiscal year 2012-2013 (Oct. 1, 2012, to Sept. 30, 2013). “Our withdrawal from the polycrystalline photovoltaics business in mid-2012 fortunately did not put a permanent strain on our results. After a one year-long interruption, we returned to profitability,” Dr. Frank Heinricht, chairman of the Board of Management, said.

Consolidated net income amounted to €26 million. Besides the positive results of continued operations that amounted to €49 million, this figure also includes the negative results of discontinued operations in the amount of €23 million. “We also used this year to realign SCHOTT,” Dr. Heinricht added. The fact that the company succeeded in reducing its financial liabilities by €80 million to €297 million clearly shows that the company rests on a “firm foundation,” Dr. Heinricht stated.

Group sales declined by 2.3% to €1.835 billion (2011/2012: €1.877 billion). This decrease was a result of the euro’s negative currency effects, in particular against the Japanese yen and the Brazilian real. Without the impact of exchange rate changes, sales would have remained at the same level as last year. The company’s regional distribution between Europe (45.4%), Asia (26.2%), and North America (21.4%) remained virtually unchanged. Foreign sales accounted for 85% of total revenue. Earnings before interest and taxes (EBIT) amounted to €118 million following €147 million the previous year.

The Pharmaceutical Systems division remained on its growth course. This includes mainly special glass tubing and primary pharmaceutical packaging, such as syringes, vials, ampoules, and cartridges. As the only manufacturer of pharmaceutical packaging that operates its own production facilities in both mature and fast-growing emerging markets (China, Russia, Brazil, India, and Indonesia), SCHOTT is currently in an ideal position.

“In total, we are growing faster than the market,” Dr. Heinricht reported. Each year, SCHOTT manufactures more than nine billion packaging units made of specialty glass and plastics on more than 800 production lines in 13 countries.

The Home Tech division with its brands Ceran glass-ceramic cooktop panels and Robax fireplace viewing panels is also of importance and developed at a different pace from region to region. While stable market growth was achieved in Europe, demand in the NAFTA states remained weak, although there were signs of recovery that gave reason for cautious optimism in the second half of the year. Eastern Europe and Asia also developed positively.

With respect to the Concentrated Solar Power (CSP) division, Dr. Heinricht described the market conditions as difficult. With its receivers, SCHOTT supplies the core element for use in this technology for generating power by way of solar thermal parabolic trough power plants. “Our goal is to enter into a strategic partnership in this field. In fact, we are even willing to consider selling the majority of our shares,” Dr. Heinricht said.

SCHOTT still assesses the framework conditions for the current fiscal year to be difficult due to the uncertain development of the world economy, the current weakness of the currencies of many emerging countries, and the ongoing European debt crisis.

“Nevertheless, we still feel that we are well prepared for this volatile market,” Dr. Heinricht said. He added that SCHOTT will make better use of its broad product portfolio as the company continues to realign its activities and thus be able to take advantage of future growth opportunities.

Based on how business has developed during the first months of this year, SCHOTT expects group sales to increase by between 4% and 6% in fiscal 2013/2014, adjusted for currency effects, and higher EBIT than in the previous year. The group expects profit for the year in the double-digit million euro range.