Uster sees significant sales growth in all product groups
Uster Technologies Ltd, the leading high technology instrument manufacturer of products for quality measurement and certification for the textile industry, posted strong performance levels and achieved new record sales in the financial year 2011. The Group's gross sales grew to CHF 192.5 million, an increase of 44.9% compared to the prior year level of CHF 132.8 million. EBITA increased by 63.7% to CHF 56.6 million (2010: CHF 34.6 million), resulting in an EBITA margin of 29.4% (2010: 26.0%).
The net result amounted to CHF 36.2 million, 74.5% above the CHF 20.8 million achieved in 2010. New record sales came from the combined excellent performance of the new third generation of USTER yarn clearers and substantial increases in demand for laboratory yarn and fiber testing instruments. Bottom line growth was mainly driven by continued improved operational leverage based on the Group's lean organization. The cash flow from operational activities was primarily used to reduce net debt to CHF 40.7 million, underlining the Group's strong cash generation ability.
The cash position was improved to CHF 28.8 million with an EBITA / operating cash flow conversion of 95.4%. The cash flow from operating activities amounted to CHF 54.0 million (2010: CHF 42.7 million), used mainly to invest in new production equipment and to reduce debt.
The Group's strong market position allows Uster Technologies Ltd to invoice in Swiss Francs for the majority of its business reducing exchange rate impacts to a minimum level.
Dr Geoffrey Scott, CEO of Uster Technologies Ltd, comments: “The exceptional performance levels achieved in 2011 are a result of the Company's leading position in a high-tech niche market, steadfast customer orientation and high innovation power. The success of the newest yarn clearer generation USTER QUANTUM 3 demonstrates the effectiveness of these fundamental drivers. In addition the combination of the Company's flexible business model, the USTER teams' firm dedication and overall operational excellence allowed us to deliver exemplary bottom-line performance.”
New record sales came from the combined excellent performance of the new third generation of USTER yarn clearers and substantial increases in demand for laboratory yarn and fiber testing instruments. USTER further developed its strong relationships in the classing business in the important US and Chinese markets and secured additional business in further cotton growing markets such as India, Africa and Central Asia.
The demand for testing systems was strong, both in textile laboratories and in the manufacturing process, as a result of variable raw material prices, which focused producers on the value of closely controlling the quality of their cotton intake. Sales to textile machinery manufacturers and producers of automated winding machines increased thanks to the launch of the new third generation of USTER QUANTUM 3 clearer. In the customerservice business, the Uster Group maintained its strong relationships with its wide textile retailer base.
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Uster Technologies Ltd