Sales stable in Q3 – improved result expected

    Gränichen, Switzerland, 5 November 2009 – Zehnder Group, with international operations in the indoor climate sector (radiators and comfort ventilation), reported stable sales in line with the first 6 months of 2009. The operating margin improved, thanks to the various strategic and operational measures implemented. The relatively moderate decline in sales so far will probably become more noticeable in 2010 because Zehnder Group's business operations are late cyclical.

    Stable sales development in third quarter

    Compared to the first six months of the year, sales development in Zehnder Group's most important markets was stable. The first six months were down 6 % year on year. Initially, management assumed that the second half of the year would prove more challenging than the first half, but this scenario has not developed so far.

    Prospects for the entire year – improved result

    It is still difficult to make a forecast for the entire year. Quite apart from the uncertainties prevailing with regard to economic developments, reliable forecasts are hard to make because of the short-term nature of Zehnder Group's operations. Management assumes that business volume will still remain relatively stable in the fourth quarter and that sales for the entire year will thus be some 6 % below the prior year (2008: EUR 454 million). As a result of the late cyclical nature of Zehnder's business, management anticipates that sales will decline more strongly in 2010 and that there will be no recovery before 2011. The Group's various strategic and operational measures are already impacting positively on earnings for the current year. If sales development continues as anticipated, management expects EBIT (before extraordinary influences) to reach between EUR 35 and 40 million (2008: EUR 34 million). Net income should amount to some EUR 25 to 30 million (2008: EUR 3 million).

    René Grieder
    Moortalstrasse 1
    5722 Gränichen

    Chief Financial Officer

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