Global manufacturer of reciprocating compressors, Burckhardt Compression, experienced a significant drop in orders received during 2009, although sales remained stable.
For fiscal period ending 31st March 2010, operating profit was 21.2% down on the previous year, at CHF 74.2m, earnings per share were also down 22.3% to CHF16.68. Meanwhile, net income sat at CHF 56m, which corresponded to 16.3% of top-line revenue.
Gross profit declined by 13.2% to CHF 126.9m. The company attributed the higher gross margin of 37%, compared to 34.4% in the prior period to several factors including; greater input form the CSS and the compressor component business lines, and significantly higher margins in the new machine business.
During the forthcoming Annual General Meeting, the Board of Directors will propose a dividend of CHF 5.00 per share, which corresponds to a 30% payout ratio and is in keeping with the company's dividend policy.
Despite the down-turn, Burckhardt remained positive, qualifying the decline as reflecting the overall financial market. The company noted that changes were minimal when compared with competitors and the industry as a whole. Looking towards the current fiscal year, Burckhardt released a press statement anticipating higher order intake and sales, with lower margins.