Industry Metall Zug posts higher profit in the first half of the year thanks to special factors
The Metall Zug Group increased its profit from CHF 12.6 million to CHF 56.6 million in the first half of 2024. This was due to a book profit from the joint venture that the company established with household appliance specialist Miele. The Zug-based company is cautious about the future outlook.
19.08.2024, 08:14
SDA
According to a statement issued on Monday, the Metall Zug Group generated sales of CHF 181.2 million in the first half of 2024, compared to CHF 228.4 million in the previous year. CHF 19.9 million of the drop in sales is due to the fact that Metall Zug contributed the Belimed division to a joint venture with Miele. The joint venture is active in the areas of cleaning, disinfection and sterilization.
Operating profit (EBIT) rose to CHF 60.4 million thanks to a book profit from the joint venture, compared to CHF 6.9 million in the previous period. Adjusted for the special effect, EBIT would have fallen by CHF 13.2 million, resulting in a negative operating result of around CHF 6 million. The main reason for this was the significantly lower operating result of the medical technology division (Medical Devices).
Cautious outlook
Metall Zug stated that it was difficult to make a forecast for the second half of 2024, primarily due to the economic and political uncertainties. Incoming orders in the Medical Devices Business Unit increased slightly in the first half of 2024 compared to the prior-year period. A slight increase in sales can therefore be expected for the second half of the year.
The Metall Zug Group's operating result (EBIT) is expected to be flat in the second half of the year due to the continued high cost base in research and development.
