Gurit’s Wind Energy sales grew by 39.7% on a currency adjusted basis and 24.1% in reported Swiss francs to CHF 196.7 million and accounted for 57.0% of Group sales.
The growth momentum anticipated for the second half of 2011 materialised in the prepreg business in Europe and the Americas and more than compensated the significant market contraction in China during that same period. The operational EBIT margin achieved in the Wind Energy business in 2011 was below the Group’s operational EBIT margin. The results were impacted by raw material cost increases and weak prepreg sales in the first half-year and a market decline in the Chinese market coupled by fierce competition in the second semester. The working capital tie-up was very significant across the global Wind Energy customer base as most customers saw a profitability and liquidity shortfall in 2011. The high volatility in the Wind Energy market makes it difficult to provide a net sales guidance for 2012. Uncertainty still stems primarily from the unclear timing of the Chinese wind energy market recovery from the severe hit it took during the past six months and the situation around the US Wind Energy subsidy renewal for 2013 and beyond.
The growth momentum anticipated for the second half of 2011 materialised in the prepreg business in Europe and the Americas and more than compensated the significant market contraction in China during that same period. The operational EBIT margin achieved in the Wind Energy business in 2011 was below the Group’s operational EBIT margin. The results were impacted by raw material cost increases and weak prepreg sales in the first half-year and a market decline in the Chinese market coupled by fierce competition in the second semester. The working capital tie-up was very significant across the global Wind Energy customer base as most customers saw a profitability and liquidity shortfall in 2011. The high volatility in the Wind Energy market makes it difficult to provide a net sales guidance for 2012. Uncertainty still stems primarily from the unclear timing of the Chinese wind energy market recovery from the severe hit it took during the past six months and the situation around the US Wind Energy subsidy renewal for 2013 and beyond.
