Phoenix Mecano opens an investigation into potential irregularities in a subsidiary
Phoenix Mecano Management AG / Keyword(s): Miscellaneous
04-Jul-2022 / 07:00 CET/CEST
Publication of an ad hoc announcement pursuant to Art. 53LR
The issuer is solely responsible for the content of this announcement.
The investigation was opened following revelations from internal whistleblowers. Based on initial estimates, Phoenix Mecano expects a reduction in earnings from the upper single digit in the millions of euros.
Kloten/Stein am Rhein, July 4, 2022. Phoenix Mecano has opened an internal investigation into potential irregularities at a US subsidiary regarding certain customer orders, external sales and trade receivables. The investigation, which is ongoing and assisted by forensic experts and outside lawyers, will focus on transactions between 2018 and this year. According to preliminary estimates, the Group anticipates a one-off and non-recurring impact on the result of an amount greater than one figure in millions of euros.
The investigation was opened following revelations from internal whistleblowers. The Phoenix Mecano Group encourages its employees to report possible irregularities and misconduct and has implemented policies to this end. It will investigate this matter with due care and urgency and revise its processes to further strengthen its corporate culture of corporate ethics and accountability.
Excluding the findings of this internal investigation, Phoenix Mecano is on track to achieve its reported growth targets for sales and operating income for the current year. Although macroeconomic conditions have deteriorated significantly in recent months, the Group’s focus on structural growth markets stabilizes business performance through economic cycles.
In addition, in recent years, Phoenix Mecano’s performance improvement programs have identified considerable savings potential, which is now reflected in improved margins, particularly in the industrial sector. Phoenix Mecano will release further details on its business performance in its half-year results on August 11, 2022.
About Phoenix Mecano
The Phoenix Mecano group is a global player in the industrial housing and component segments and is a leader in many markets. Based in Stein am Rhein, Switzerland, the Group employs approximately 8,000 people worldwide and generated sales of EUR 817 million in 2021. It is oriented towards the manufacture of niche products and system solutions for customers in the mechanical engineering, measurement and control technology, medical technology, aerospace technology, alternative energy sectors and home and hospital care. Phoenix Mecano was founded in 1975 and has been listed on the Swiss stock exchange since 1988.
For more information please contact:
Phoenix Mecano Management AG
Doctor Rochus KoblerCEO
Lindenstrasse 23, CH-8302 Kloten
Such. : +41 (0)43 255 4 255
End of the ad hoc announcement