The Marketing Minute: If Your Marketing Budget Gets Cut in Half, Then What?
Punching Out: How Are the Big Boys in Electronics Doing?
It’s Only Common Sense: Complexity Is the Enemy of Profit
SCHWEIZER Reports Sales Increase in 2020
March 24, 2021 | SCHWEIZEREstimated reading time: 3 minutes
Based on preliminary figures, the SCHWEIZER Group achieved consolidated sales of EUR 98.3 million in the 2020 financial year, exceeding the projected sales of between EUR 87 and 93 million (previous year: EUR 120.7 million). Earnings before interest, taxes and depreciation (EBITDA) of EUR 9.5 million (previous year: EUR +0.1 million) with an EBITDA ratio of -9.7 percent (previous year: +0.1 percent) were in line with the expectations for 2020 that had been specified in July 2020.
Development of Sales
With sales of EUR 29.3 million in the fourth quarter of 2020, the development of sales has recovered significantly in comparison to the previous quarters of the year. Particularly characteristic of this positive development is the increased demand from automotive customers during the months of September to November.
The decline in total annual sales of -18.6 percent affected both sales from in-house production at 18.0 percent, as well as sales from the production of our Asian partners WUS and Meiko, with a decline of 19.9 percent. As a result, the sales share of merchandise remained unchanged at almost 31 percent. The share of sales in the non-automotive sector developed positively, rising to 26.5 percent (2019: 23.8 percent), which can be attributed in particular to an increase in sales with customers from the sectors communications, consumer and computing.
Operating Margin and Operating Result
Gross profit on sales amounted to EUR +0.4 million (previous year: EUR +12.6 million). The gross margin fell from +10.5 percent in the previous year to +0.4 percent. The main reasons for the decline were, on the one hand, the production costs of EUR 15.8 million for the newly built plant in Jintan (China), which were included in the cost of sales for the first time, and the negative gross earnings contribution generated by the new plant as a result of the ramp-up phase. On the other hand, the main reason for the lower gross profit is the decline in business volume due to the coronavirus pandemic.
In order to counteract the reduced business volume and margin income, extensive cost-cutting measures were implemented in personnel and material costs of production and administration to compensate for underutilisation and to reduce the fixed cost threshold of the Schramberg plant. The cost-cutting measures that had already been implemented in the previous year were intensified in 2020.
Special expenses from the restructuring and a bad debt loss of EUR 2.9 million and the start-up losses of the new plant in Jintan (China) of EUR 8.3 million impacted upon EBITDA (earnings before interest, taxes and depreciation) in 2020. EBITDA amounted to EUR -9.5 million in 2020 (2019: EUR +0.1 million), which corresponds to an EBITDA ratio of -9.7 percent (previous year: +0.1 percent). Adjusted for these factors affecting earnings, EBITDA amounted to EUR +1.7 million which corresponds to an EBITDA ratio of +1.7 percent.
Outlook
For 2021, the Executive Board expects a significant recovery of business figures, whereby the dynamics of SCHWEIZER's recovery will largely depend on two factors, in addition to the further development of the coronavirus pandemic:
First and foremost is the continued positive development of the new plant in Jintan (China) and the technology qualifications and important certifications planned for 2021. The further development of the new plant in China will enable SCHWEIZER to become more international and broaden its customer base.
The second important factor for the development of the company will be the stability of supply chains in the global context. A sustained shortage of components can lead to a limitation in both customer demand and supplier offers.
Based on forecasts for the development of the global economy, the PCB market and SCHWEIZER's new structure of a German-Chinese PCB group, the Executive Board expects sales growth of between 20 and 30 percent in 2021 and a significant improvement in the EBITDA ratio to 0 to -6 percent in terms of sales.
The final and audited figures for the 2020 financial year as well as a detailed forecast for the current financial year will be published on 23 April 2021.
Share on:
Testimonial
"The I-Connect007 team is outstanding—kind, responsive, and a true marketing partner. Their design team created fresh, eye-catching ads, and their editorial support polished our content to let our brand shine. Thank you all! "
Sweeney Ng - CEE PCBSuggested Items
ESD Alliance Reports Electronic System Design Industry Posts $5.5 Billion in Revenue in Q4 2025
04/15/2026 | SEMIElectronic System Design (ESD) industry revenue increased 10.3% to $5,466.3 million in the fourth quarter of 2025 from the $4,955.2 million registered in the fourth quarter of 2024, the ESD Alliance, a SEMI Technology Community, announced today in its latest Electronic Design Market Data (EDMD) report.
Punching Out: How Many PCB Companies Are There in North America Now?
03/19/2026 | Tom Kastner -- Column: Punching Out!When I am asked how many PCB shops are still in the U.S., my answer is usually, “About 130. How many do you want to buy?” However, I do not really know the number. My job is either to sell PCB shops or help people buy them, not to count them. I probably should keep better track of them, but many are small (70% have revenue below $10 million), or they say they are making boards even if they rent out their facility as an auto repair shop.
EIPC Winter Conference 2026 Review: The Keynote Sessions
02/11/2026 | Pete Starkey, I-Connect007Aix-en-Provence (pronounced “ex-ahn-pro-vonse”), a historic city and commune in the south of France, about 20 miles north of Marseille, was the pleasant venue for EIPC’s Winter Conference in early February. Industry delegates from 11 European countries, as well as from the U.S. and China, gathered at the Renaissance Hotel for a two-day programme, “Driving the Future: Innovation, Energy, and Sustainability in PCB Technology.” An added attraction was a privileged visit to the ITER fusion power project at the Cadarache research and development centre.
SMTA Space Coast: What's Needed to Modernize Defense Solder Standards
12/23/2025 | Nolan Johnson, I-Connect007Long-time lead-free solder investigator, Denny Fritz, hit the SMTA Space Coast Expo in November to drum up support for an initiative to include lead-free solder in milaero-based printed circuit board assemblies. In this interview, Denny provides background on the genesis of the “consider all solders” project and why it matters to continue leading this effort.
I-Connect007 Editor’s Choice: Five Must-Reads for the Week
11/28/2025 | Nolan Johnson, I-Connect007Yesterday was the U.S. Thanksgiving holiday. The traditional meal is, of course, roast turkey with “all the trimmings.” Although not everyone observes that menu, most do, and it was reported that 42 million turkeys were consumed on that day. With an average weight of 16 pounds per turkey, we cooked up 672 million pounds! With approximately 342 million people in the U.S, that pencils out to just under two pounds of drumstick and white meat per person. That, my friends, is a whole lot of leftovers.