Engineered Components

Innovation projects as growth drivers

Engineered Components delivered solid growth on the back of innovation projects. The segment was able to recoup much of the margin erosion caused by unfavorable exchange rates in the second half of the year.

Solid growth in local currency achieved

The Engineered Components segment achieved solid growth of 6.1% in local currency. On a reported basis, growth amounted to 1.8%, which represents sales of CHF 740 million. Growth was primarily fueled by the production ramp-up of numerous new products and the continuing market success of key customers’ end products. Engineered Components attained a high EBITA margin of 17.7% in 2015 (previous year: 19.2%). The margin contraction compared to the previous year is directly attributable to the strong appreciation of the Swiss franc. Due to significant productivity gains and the divestment of a non-core company in Asia the number of employees declinded to 5,635 (FTEs).

Automotive division

Growing in the wake of new project ramp-ups

Measured in local currency, the Automotive division posted high growth again, which was mainly driven by new project ramp-ups. The trend towards autonomous driving is the number one growth driver for this division. SFS is developing and manufacturing actuators for electric brake system for this particular market segment. The ramp-up phase for these products is proceeding as planned. Infrastructure in India and China was expanded to lay the groundwork for the subsequent realization of growth projects. The Automotive division expects its positive business trends to be sustained during the course of 2016.

Electronics division

Strong market position achieved

Sales at the Electronics division were slightly higher than the good previous year levels, thanks to the continuing market success of major end products. Various new projects were successfully completed – for example, with leading Chinese manufacturers of smartphones – and had a positive effect. The Electronics division has successfully positioned itself in the still young market segment of wearable electronics (e.g. smartwatches) and it sees good opportunities to capture some of the anticipated growth. Key priorities in 2016 are continuing and expanding the development partnerships with customers on the basis of its powerful, advanced technologies.

Industrial division

Good results in the aircraft manufacturing and medical components industries

The major growth driver in the Industrial division remains the ramp-up of production for the Airbus A350, for which SFS supplies fastening solutions for the cabin interior. Compared to the previous year, sales of these products nearly doubled. In the medical components sector SFS is well positioned to improve opportunities for future growth, thanks to its vast know-how in the field of titanium cold forming processes and in plastic injection moulding.

Key figures Engineered Components

Highlights

Position as competent partner in growth segment of smartwatches established

Thanks to its strong innovation skills and competence in the field of miniature components, SFS has successfully established itself as a partner of leading manufacturers in the young and growing smartwatch product segment. SFS offers precision formed components, miniature screws and assemblies in this product segment. This also includes high-quality aesthetic coatings and surface treatments.

Creating value for customers and end users through product innovation

The launch of the Airbus A350XWB is an important growth driver for the coming years. SFS developed systems for fastening the cabin interior panels used in this and other aircraft. These systems offer added value in the form of simple and quick assembly and disassembly, a lightweight design, and noise-reducing features since SFS fastening solutions play a significant function in vibration control.

Fascinating customers with our enthusiasm and superior performance

SFS was the sole supplier in Switzerland to be honored with the “Bosch Global Supplier Award 2015” from Robert Bosch GmbH. SFS received this award in the “Mechanics” category. Bosch is a long-standing key customer that sources primarily ready-to-fit parts for ABS systems from the Automotive division. The current award covers the years 2013 and 2014 and this is the seventh time that SFS has been honored by Bosch as an outstanding supplier.

Bosch also presented SFS with the “Crazy for suCCess Award”, one of only five suppliers to receive this inaugural award. This new Bosch award acknowledges superior services rendered related to cost reduction, innovation and global presence. The many awards of excellence that SFS has received as a supplier serve as an important confirmation that it is on the right track and strengthen its resolve to maintain its superior performance in the future.

Thanks to its comprehensive technology competence and its ability to develop automated assembly lines, SFS Group has achieved impressive project wins in the promising market for modern brake systems.