SGS 2012 Profit Rises 5% On Higher Sales, Global Acquisitions

ZURICH -- SGS S.A. (SGSN.VX) Wednesday reported a 5% increase in full-year profit driven by higher sales and acquisitions.

MAIN FACTS:

- Revenue reached CHF5.6 billion (constant currency basis), up 14.5% over 2011.

- On a reported basis, revenue for the year increased 16.3% compared with the 2011 published figures, benefiting from a favourable foreign exchange translation effect of 1.8%.

- This increase to the Group's 2012 revenues includes 4.3% from recently acquired companies as well as a strong organic revenue growth of 10.2%.

- Net profit increased to CHF590 million from CHF561 million a year earlier

- During 2012 we acquired a further 18 businesses across 11 countries as

part of our ongoing strategic growth plan, including Herguth Laboratories and E&S Engineering Solutions, closed on ecember 31, 2012.

- The four acquired companies in South America have significantly strengthened our market presence in this region, while across all our acquisitions we grew SGS in Australia, the U.S. and Canada, South Africa and Europe and developed our services across seven of our business lines.

- Adjusted operating income for 2012 increased 12.9% over 2011 on a constant current basis, reaching CHF941 million and resulting in a margin of 16.9%.

- Operating cash flows remained strong at CHF800 million, an increase of 15.9% over the prior year.

- With this the Board of Directors proposed a dividend of CHF58 per share, CHF30 representing an ordinary distribution of 41% of net profit and an additional CHF28 reflecting the healthy cash generation capabilities of the Group.

-Zurich Bureau, Dow Jones Newswires, [phone]; [e-mail]

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