Horgen, August 7, 2009 – Orders received reached CHF 33.4 million (-63%) in the first half. Gross revenues amounted to CHF 30.1 million (-67%). The drastic decline in volume reflects the general global economic crisis and the unfavorable industry climate in particular.
The Group reported an operating result of CHF -13.7 m (1H 2008: 0.4 million). The net loss from continuing operations amounted to CHF -10.5 million (1H 2008: 1.5 million). This includes currency gains of around CHF 2.5 million. Lower net current assets led to a balanced cash flow from operating activity.
In an extremely difficult sector environment, SSM Textile Machinery’s order intake was 74% lower than the previous year. Sales declined by 71%. All regions reported a substantial drop in demand. Despite a historically low volume, the gross margin was maintained. Rigorous cost management cut fixed costs considerably, enabling the loss to be contained. The operating loss amounted to CHF 5.7 million.
Ismeca Semiconductor was also hit hard by the economic slump. New orders fell by almost 50%. Sales were 63% lower than in the previous year. Strict cost management was unable to compensate for the missing volume. The operating result stood at CHF -7.1 million. Currency gains led to a positive financial result, which cut the net loss by almost CHF 2 million.
Outlook
The first half ended with historical lows, especially in volumes. Although the business environment is likely to remain demanding in the second half, a positive trend in incoming orders, customers’ more optimistic assessment of the future and a backlog in invest-ments all indicate a considerably better second half.
Innovations are being pushed in both divisions. This not only enables market positions to be secured – it also creates a good basis for the company to reap above-average benefits from the next upturn.
Cash and cash equivalents and treasury shares worth over CHF 600 million, plus a debt-free balance sheet, are available for acquisition projects – some of which have already reached an advanced stage.