Schaffner remains in the profit zone despite significant drop in sales

May 07, 2020

Media Release


Schaffner remains in the profit zone despite significant drop in sales



The global corona pandemic is also affecting the Schaffner Group’s business. The noticeable decline in demand has significantly slowed down sales and new orders. Thanks to immediately initiated cost-cutting measures, the Schaffner Group remained in the profit zone in the first half of fiscal 2019/20. Supply capability was ensured at all times, taking into account strict safety measures for employees. The strategic projects are being continued consistently.


Luterbach, Switzerland – 7 May 2020 – Affected by a slowdown in major end markets in the first quarter and the negative impact of the corona pandemic from the second quarter, new orders declined by 14.8% year-on-year to CHF 91.3 million (previous year/PY: CHF 107.1 million). Net sales decreased by 15.2% year-on-year to CHF 86.0 million (CHF 101.4 million). In local currencies, the change compared with the prior year was -11.9%. The book-to-bill ratio for the reporting period was 1.06, as in the previous year.


Group results remains in the profit zone

The Schaffner Group generated a gross margin of 26.6% (28.3%) in the first half of 2019/20. The operating profit (EBIT) came to CHF 0.7 million (CHF 5.3 million) and the EBIT margin was 0.8% (5.2%). Net profit amounted to CHF 0.6 million (CHF 3.5 million), earnings per share (EPS) were CHF 0.88 (CHF 5.52). The Schaffner Group has implemented a comprehensive program of measures to limit the negative effects of the economic downturn caused by the pandemic while maintaining its supply capability. These include short-time work, structural and capacity adjustments at plants and overheads, the postponement of renewal investments and strict cost management. In addition, the Board of Directors and Executive Committee will waive a part of their fixed compensation in fiscal 2019/20 as an expression of solidarity.


Business remains broad-based

The Schaffner Group is an established partner to customers in system-critical industries such as energy, medical technology, and transportation. Its business remains broad-based. In the period under review, 24% (PY: 23%) of sales were generated in the end market for efficient drive systems. As in the previous year, the automotive electronics end market accounted for 19% of sales, power supplies in electronic devices for 14%, and machine tools and robotics for 13%. Rail technology accounted for 11% (PY: 14%), while 11% (PY: 9%) also came from the end market for electrical infrastructure. As a consequence of the plant closures in the second quarter imposed by the Chinese government due to the corona pandemic, the share of Group sales attributable to the market region Asia decreased to 27% (PY: 33%). Europe remained the largest market region for Schaffner with 48% (PY: 46%) of sales. The Americas contributed 25% (PY: 21%) of sales.


EMC division

The EMC division, the world’s leading manufacturer of EMC filters, was confronted in the first quarter of fiscal 2019/20 with a weaker dynamic in the industrial sector and further destocking by its distribution partners. A recovery in demand at the beginning of the second quarter was interrupted by the outbreak of the corona pandemic. These factors led to a 6.3% year-on-year decline in new orders in the first half of fiscal 2019/20 to CHF 52.3 million (PY: CHF 55.9 million). Net sales decreased by 13.7% year-on-year to CHF 46.9 million (PY: CHF 54.3 million). The book-to-bill ratio for the reporting period was a positive 1.11 (PY: 1.03). The EMC division achieved a segment operating profit (EBIT) of CHF 3.9 million (PY: CHF 7.6 million) and an EBIT margin of 8.3% (PY: 14.0%). In order to be well prepared for the expected recovery of the markets, the division has intensified the development effort for strategic initiatives.


Power Magnetics division

Although the Power Magnetics division’s business in the first half of fiscal 2019/20 was affected by numerous project postponements in the rail technology sector in China and Europe, the division achieved its targeted turnaround with a break-even result, a segment operating profit (EBIT) of CHF 0.03 million compared to CHF -2.0 million in the previous year. At CHF 24.1 million (PY: CHF 31.6 million), new orders declined by 23.8% compared to the previous year. Net sales decreased by 17.9% year-on-year to CHF 22.8 million (PY: CHF 27.7 million). The book-to-bill ratio for the reporting period was a positive 1.06 (PY: 1.14). Since the second quarter, the Power Magnetics division has seen an increase in orders from the end markets of rail technology and wind energy in China and is well utilized at the adjusted level.


Automotive division

The downturn in the global automotive industry intensified in the period under review. In addition, a strike at General Motors in the USA in the first quarter of fiscal 2019/20 adversely affected the Automotive division’s business. Following the outbreak of the corona pandemic, demand almost came to a standstill in the second quarter. Net sales decreased by 15.8% year-on-year to CHF 16.4 million (PY: CHF 19.5 million). In the first half of fiscal 2019/20, the Automotive division achieved a segment operating profit (EBIT) of CHF -0.9 million (PY: CHF 2.3 million). The EBIT margin was -5.7% (PY: 12.0%). Despite the major challenges, the Automotive division was capable of supplying at all times during the period under review. Within the Automotive division, particular attention is being paid to building up the project pipeline with antennas for keyless authentication systems and filter solutions for electromobility. In the first six months of fiscal 2019/20, the division won significantly more new projects with a total delivery volume of around CHF 80 million over the lifetime of the projects. These successes illustrate the medium-term potential of the Automotive division.


Cash flow and balance sheet

In the first half of fiscal 2019/20, the Schaffner Group generated a free cash flow of CHF -6.5 million (PY: CHF -1.1 million). It continues to have a solid balance sheet. Total assets at the end of the period amounted to CHF 136.2 million (30 September 2019: CHF 141.9 million) and the equity ratio was 40.8% (30 September 2019: 44.6%).



The corona pandemic will continue to have a negative impact on global supply chains and the demand in the coming months. The overall impact on the sales and results of the Schaffner Group cannot be assessed accurately at this time. For this reason, the Schaffner Group is refraining from issuing guidance for fiscal 2019/20. Schaffner continues to consistently execute the program of measures and can thereby build on a solid balance sheet. In addition, the systematic further development of strategic projects, particularly in the fields of smart grids, lighting, and electromobility, will form the basis for the Group to be well prepared for the expected upswing.


Conference Call and Audio Webcast, 7 May 2020, 10.00 a.m.

Marc Aeschlimann, Chief Executive Officer, and Christian Herren, Chief Financial Officer, of the Schaffner Group will explain the half-year results 2019/20 and the current market evaluation in a conference call. The dial-in numbers are:


+41 58 310 50 00 (Europe)

+44 207 107 06 13 (UK)

+1 631 570 56 13 (USA)


When registering, please provide your name and company.


The presentation is also available as anAudio Webcast(listen only). A recording will be made available at the sameaddress:


Half-year report 2019/20

The complete 2019/20 half-year report of the Schaffner Group is available at the following link:



The presentation of the half-year results 2019/20 is available at the following link:


All documents relating to the half-year results 2019/20 can be viewed on the Schaffner Group's IR website:



Key financials of the Schaffner Group

For the first six months (1 October to 31 March)

Group in CHF '000

H1 2019/20

H1 2018/19


New orders




Net sales




Operating profit (EBIT)




in % of net sales




Net profit for the period




in % of net sales




Number of employees (Headcount)








Segment reporting in CHF '000




EMC division




New orders




Segment sales




Segment operating profit




in % of segment sales




Power Magnetics division




New orders




Segment sales




Segment operating profit




in % of segment sales




Automotive division




New orders




Segment sales




Segment operating profit




in % of segment sales








Consolidated balance sheet in CHF '000




Total assets




Shareholders' equity




in % of total assets








Key share figures




Number of shares




Net profit for the period per share in CHF




Shareholders' equity per share in CHF







Marc Aeschlimann

Chief Executive Officer

T +41 32 681 66 01


Christian Herren

Chief Financial Officer

T +41 32 681 66 01


Financial calendar

8 December 2020

12 January 2021

Publication of annual results 2019/20

25th Annual General Meeting