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Ladies and gentlemen
Following the massive downturn in 2008 and 2009 the global economy recovered faster than expected in 2010, and with it all the markets and regions of relevance for the SFS group. All group companies were able to report significant increases in sales revenues and volumes in the year under review. Excluding currency effects, group sales were 12.2 % higher. However, exchange rate trends were unfavourable to SFS, reducing sales growth in Swiss francs to 7.0 %. The profit trend was also curbed by the rise in value of the Swiss franc. However, the adjustment measures initiated and largely completed in the previous year had a very positive overall impact on profit trends in the group. The operating profit margin improved to 10.8 % due to gains in productivity and effective cost management. Balance sheet ratios also developed favourably. The equity ratio was very sound at 77 % of total assets.
Key figures from the consolidated income statement of the SFS Group
 | Mio. CHF | Mio. CHF | Change |
| 2010 | 2009 | % |
| Sales | 1200,2 | 1122,1 | 7% |
Cashflow from operations (EBITDA)
% of total revenue | 215,0
17,9 | 127,7
11,7 | 68% |
Operating profit (EBIT)
% of total revenue | 130,0
10,8 | 35,9
3,3 | 262% |
| Net income (EAT) | 100,8 | 40,7 | 147% |
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SFS intec
Sales by SFS intec were especially affected by the unfavourable currency trend referred to above, since SFS intec books more than 95 % of its revenues outside Switzerland in local currencies. At constant exchange rates, SFS intec achieved growth of 15.1 % in the 2010 financial year. The trend of business in the Automotive Products Division, which participated in the upswing of the automotive industry, was especially dynamic. The Sunil SFS intec joint venture in China, in which SFS holds a 50 % interest, recorded excellent sales growth, significantly expanded production capacity and reported a positive operating profit. Despite persistently difficult market conditions, the subsidiaries in North America reported sales growth and positive earnings. SFS intec was able to celebrate its golden jubilee in the fall of 2010. The establishment 50 years ago of what was then Presswerk Heerbrugg AG laid the foundation for the successful development of today’s SFS intec with its global operations.
SFS unimarket
Despite concentrating on core businesses and exiting marginal activities, SFS unimarket reported growth of 5.4 % in a Swiss market which remained robust. The Tools Division in particular developed successfully, benefitting from a renewed increase in demand for its products and services. SFS unimarket also scored successes with new, innovative logistics solutions. System partnerships for supplying C-category parts were entered into with a considerable number of new customers. SFS unimarket increased earnings overall through innovative system solutions and the expansion of service offerings in addition to substantial productivity gains.
SFS Locher
Following a very difficult 2009 financial year for the steel distribution industry featuring extremely volatile raw material prices, SFS Locher reported a significant increase in sales revenues and volumes in 2010. The Steel and Metals Division expanded sales volumes by 12 % and thus exceeded market growth. System partnerships for supplying semifinished steel and metal products combined with providing customized processing and logistics services were entered into with important large customers. The Construction Division of SFS Locher benefitted from a stimulated market environment and its positioning as an efficient, specialist supplier for the construction sector. It reported excellent results for the 2010 financial year.
SFS services
SFS services is the group’s in-house service provider in the fields of HR management (including personnel training/ development and basic vocational training), IT services (including operating and development), finance, accounting and controlling, as well as planning and organization of infrastructure projects. With its services and expertise combined with advantages of scale, SFS services contributes directly to the competitiveness of SFS Group units operating in the marketplace.
Outlook
Two contrasting trends characterize the prospects for the 2011 financial year. On the positive side, we can look forward to an ongoing, albeit now rather slower recovery in our markets. With intact performance potential, innovative market offerings and committed personnel, we can confidently face our customers’ high demands and the challenges posed by the globalization of our markets and a further intensification of competition.
On the other hand, current exchange rates are a source of concern. In view of the appreciation of the Swiss franc versus the Euro by more than 12 % compared with the average level in 2009, the Swiss manufacturing operations of SFS intec are still having to absorb significant declines in revenues and margins on their exports to the Eurozone.
Thanks
We wish to thank our customers and suppliers for their cooperative partnership with our company.
Our sincere thanks go also to all employees in more than 20 countries, who do their utmost with passion and a high level of commitment to meet the needs of our customers and assure the success of our corporate group.
On behalf of the Board of Directors and the Executive Committee
Heinrich Spoerry
Number of employees at year-end
| Number of employes (FTE) | 2010 | 2009 |
| Switzerland | 2306 | 2348 |
| Europe | 1396 | 1544 |
| North America | 391 | 398 |
| Rest of World | 9 | 10 |
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SFS intec
SFS intec has made a name for itself as a global development partner, manufacturer and supplier of precision cold formed components, special fasteners and mechanical fastening elements.
| 2010 | 2009 | Change |
| Sales (million Sfr.) | 749 | 698 | 7,3% |
| Number of employees( FTE) | 3'200 | 3'320 | -3,6 % |
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SFS unimarket
SFS unimarket is a leading national supplier of fasteners, special components, tools, architectural hardware and chemical/technical products in Switzerland and neighboring countries.
| 2010 | 2009 | Change |
| Sales (million Sfr.) | 292 | 277 | 5,4% |
| Number of employees( FTE) | 574 | 625 | -8,1% |
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SFS Locher
SFS Locher has a reputation as a dependable supplier of steel, metal, building supplies and construction tools as well as innovative systems in the reinforcement sector from locations in Switzerland and western Austria.
| 2010 | 2009 | Change |
| Sales (million Sfr.) | 177 | 161 | 9,3% |
| Number of employees( FTE) | 186 | 196 | -5,0% |
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SFS services
SFS services is the in-house business partner for the three operating companies of the SFS Group. The bundling of administrative processes in this Shared Service Center ensures a high level of efficiency and quality.
| 2010 | 2009 | Change |
| Sales (million Sfr.) | 36 | 39 | -7,9% |
| Number of employees( FTE) | 142 | 161 | -12,5% |
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