Financial managementSound financial management proves prudent
The HUBER+SUHNER Group was able to implement extensive restructuring measures last year thanks to its strong balance sheet and highly effective working capital management. Despite considerable losses, the company managed to achieve a free cash flow of CHF 34.4 million (CHF -56.2 million), which was used to pay down financial liabilities. Inventory levels were sharply reduced (CHF -58.2 million), while capital expenditure was pared back to CHF 20.0 million (CHF 71.6 million) and various assets not needed for operational activities were disposed of. Although shareholders' equity fell to CHF 254.3 million at year-end as a consequence of the negative result (2001: CHF 337.1 million), it still accounted for 51.9% (2001: 53.1%), in other words more than half, of the balance sheet total. At the end of 2002, cash and marketable securities amounted to CHF 56.0 million (CHF 60.8 million) or more than 11% of total assets.
