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Gratifying result for 2005 despite industry slump – Economy picking up pace since early 2006 – Progress in strategic development at Swissmetal – Situation at Reconvilier remains critical 2005 Financial Year
In a financial year dominated by a cyclical slump within the industry, Swissmetal generated gross sales of CHF 198.3 million, 3% down on the prior-year figure. Because 2005 saw a further significant rise in metal prices, the decline in gross sales was less than that in gross added value sales. At CHF 103.5 million, gross added value sales, i.e. sales less metal at standard metal costs, were 12% down on 2004. Operating income before depreciation (EBITDA) and the operating result (EBIT) were both significantly lower than in the previous year, at CHF 16.0 million (2004: CHF 20.2 million) and CHF 3.4 million respectively (2004: CHF 8.4 million), mainly owing to the decline in sales. As one-off special impacts had contributed to a high non-operating result in 2004, after-tax earnings (EAT) in 2005 were also well down on their prior-year level at CHF 3.3 million.
The balance sheet total (total assets) of CHF 162.8 million as at 31 December 2005 has changed only marginally since the end of 2004.
Operating cash flow stood at CHF 21.1 million at the end of 2005, representing a CHF 25.7 million increase year-on-year. This significant improvement was achieved in spite of lower profit figures, in particular owing to the reduction in net current assets which had previously been built up in 2004. In 2005, Swissmetal invested CHF 15.5 million in plant and machinery, including the new extrusion press.
First Quarter 2006 Situation at Reconvilier
Swissmetal remains committed to its stated objective of turning the Reconvilier site into a modern finishing and distribution centre specializing in wires and rods, thus securing 150 to 200 long-term jobs.
However, this requires the situation at Reconvilier to return to normal within the next few weeks. For this reason efforts are currently focused on significantly boosting production output at the Reconvilier works after it had slumped as a result of the illegal strike. Although a certain amount of progress has been made in recent weeks, the situation remains critical. Unfortunately, around 60 employees have been off sick since the end of the strike. The workforce is still being subjected to 4 daily campaigns by the strike leaders and their followers in Internet forums and the local media, among others.
Under no circumstances will Swissmetal allow the unsatisfactory performance at Reconvilier to put the company as a whole or any of its other locations at risk.
Progress in strategic development at Swissmetal |
