Arbon, 20 February 2014 – AFG Arbonia-Forster-Holding AG is recognising CHF 73 million in impairment charges for the STI Group and out of the sale of AFG Kitchens in 2013. This will produce another consolidated net loss of around CHF 50 million for the Group as a whole . The preparations for the sale of the STI Group have been completed and the sales process is underway. CEO Daniel Frutig leaves the company.
The Administrative Board would like to express its thanks and appreciation to Daniel Frutig for his work on streamlining the AFG portfolio and the strategic alignment over the last about three years. He has played a key role in focusing and realigning the company with the sustainably promising business fields of building envelopes, building technology and building security. In view of the upcoming phase of consistently implementing the strategy that has been set out, ensuring dynamic growth and transforming the current group structure into a streamlined industrial holding organisation, the Administrative Board and the CEO have agreed to restructure the company management.
As a result, Daniel Frutig has decided to step down immediately and leave the company by mutual agreement. Rudolf Graf, Chairman of the Administrative Board, will assume the role of acting CEO. He has many years’ experience in the management and growth orientation of international, industrial businesses. The search for a new, future CEO has already begun.
At its last meeting, the AFG Arbonia-Forster-Holding AG Administrative Board decided to hive off the STI Group, Steinach TG, which provides surface technology solutions, following an extensive approx. CHF 64 million depreciation of its real estate and facilities. The Board also issued a mandate of sale to transfer STI into the hands of a new, most suitable owner. This decision completes the portfolio streamlining, which has been conducted over the last few years, and the consistent alignment of AFG with its stipulated core competencies. Together with the depreciations from the sale of the kitchen business, which amounted to approx. CHF 9 million, the depreciation required in this context will lead to a total consolidated net loss of around CHF 42 million on the AFG 2013 balance sheet. As the depreciation is a non cash flow item, however, AFG Arbonia-Forster-Holding AG will retain its sound financial position.
Chairman of the Administrative Board
Head Corporate Communications