One-off book profit boosts Metall Zug

The operating result of the Metall Zug Group has increased to CHF 135.9 million, thanks to the book profit from the Schleuniger sale.

The business year of the Metall-Zug Group was also marked by procurement problems. The holding company, which has holdings in medical technology and industrial companies, reports that some components are not available, that raw material, energy and freight prices are rising while freight capacities are tight, and that there is a shortage of skilled workers and wage pressure.

All of this has had a negative impact on the result. According to the annual report, the company has reacted with further sales price increases as far as is possible, but the effect of these on the income statement has been delayed, especially in the long-term project business.

How the foyer and café at the headquarters of the V-Zug Metall-Zug subsidiary at the Zug Tech Cluster will look one day.       Visualisation

In the past year, however, all divisions were able to increase their turnover compared to the previous year, even where profitability could not always keep pace. Overall, the adjusted total turnover of the group rose by 9.8% to CHF 645.9 million, compared to the previous year. The operating result at EBIT level increased to CHF 135.9 million (previous year: CHF 42.3 million), thanks to the CHF 89.7 million book gain from the merger of Schleuniger with Komax. On the other hand, Schleuniger's Ebit contribution for the months September to December was omitted, as the two manufacturers of wire processing machines had merged last year. In return, Metall Zug became the largest single shareholder, with a 25% stake.

Metall Zug decided on a new strategy in 2019. Business units should be able to develop independently to a large extent, or should be able to become independent. In such a case, as with Schleuniger, the Metall Zug Group remains the anchor shareholder. The spin-off of V-Zug followed a similar pattern. Among others, the medtech companies Haag-Streit and Belimed, as well as the anchor location Tech Cluster Zug, continue to belong to the group. According to the annual report, Metall Zug sees "high real estate development potential" here.