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Swissmetal maintains slightly positive result in difficult market environment – Fundamental strategic direction announced for next five years – Comprehensive CHF 75 million investment programme for Swiss production facilities Dornach - Reconvilier, 8 November 2005
In the first three quarters of 2005, faced with a difficult market environment, Swissmetal generated gross sales of CHF 147.4 million and gross added value sales of CHF 78.3 million. In the period under review, extremely high copper prices continued to dog the industry. Overcapacity in simple standard products resulted in falling prices in the related market segments. In spite of these factors, Swissmetal still achieved a slightly positive operating result (EBIT) of CHF 2.7 million and generated after-tax earnings of CHF 2.6 million. Operating cash flow stood at CHF 15.7 million, a substantial CHF 14.2 million higher than in the same period last year, partly owing to the reduction in net current assets. As at 30 September 2005, CHF 7.2 million had been spent on scheduled investments. In connection with the repositioning of the company, Swissmetal is also releasing information today concerning the fundamental strategic direction it will pursue over the next five years. The company is thus presenting a new, joint industrial concept concerning the development of its two Swiss plants, which will enable Swissmetal to consistently exploit internal potential for synergies and to offer both the Dornach and Reconvilier sites a long-term perspective. Both locations will be turned into specialized competence centres of excellence under a programme of investments totalling CHF 75 million over the next five years. |
