Machine tools StarragTornos suffers profit slump in 2024 and cuts dividend
The StarragTornos Group suffered a slump in profits in the first full financial year after the merger of Starrag and Tornos at the end of 2023. The significant decline in demand in the luxury goods and industrial sectors had an impact. The dividend is now being cut.
13.03.2025, 23:06
13.03.2025, 23:11
SDA
Operating profit EBIT fell by two thirds to CHF 15.4 million compared to the pro forma figures for the previous year, as the machine tool manufacturer announced in a press release on Thursday evening. The EBIT margin shrank to 3.1 percent from 8.2 percent in the previous year.
At the bottom line, net profit fell by 64 percent to 11.9 million Swiss francs. The main reason for this was the 12.5 percent drop in sales, which StarragTornos had already announced at the end of January. Overall, the company posted sales of 494.1 million Swiss francs. On a pro forma basis, Starrag and Tornos together would have achieved sales of CHF 564.7 million in 2023.
In addition to the decline in sales, the decrease in the share of higher-margin products also weighed on profitability. To counteract this, measures were taken on the cost and sales side.
Following the merger, the company launched a synergy program, for example in purchasing. This is on track and the measures taken are going according to plan, it said.
Incoming orders fell by 9.9 percent to 476.3 million francs. There were slumps in the luxury goods business and in industry in particular. However, the Medtech & Dental division also suffered. In contrast, the energy business saw a sharp upturn. More orders were received in the aerospace and transportation sectors.
Shareholders will now receive a lower dividend. The payout will be reduced to 1.00 francs, compared to 2.50 francs a year ago, it was reported.
