Operating result gradually improved

After drastically reducing capacities and cost bases in the previous year, the Group was forced to take further action in 2002. Thanks to extensive rationalization, the HUBER+SUHNER Group managed to maintain the gross margin at the prior-year level of 26.9%. The operating loss before restructuring charges was gradually reduced during the course of the year, reaching CHF –34.4 million at year-end. This represents an improvement of around CHF 2 million despite the fact that sales were CHF 125 million lower compared with 2001.

As such, the result was significantly better than in the second half of 2001. In order to generate a sustained improvement in the profitability of the HUBER+SUHNER Group, the Board of Directors and the newly formed Executive Group Management launched a far-reaching action plan in May 2002. The plan included, among other things, a stronger focus on the company’s core business, the withdrawal from activities without prospects of sustained success, a reduction in capacities, the creation of globally coordinated production and logistics structures offering greater flexibility, and the realignment of the corporate structure. Further action was required after the summer following a renewed decline in incoming orders, and this resulted in total extraordinary expenditure of CHF 36.8 million. Thus the operating loss after restructuring charges rose to CHF –71.2 million (previous year CHF –50.5 million). The group loss amounted to CHF –75.2 million (previous year CHF –56.6 million) or CHF –15.53 (–11.69) per registered share. Due to the various adjustments, headcount within the Group declined to 2,865 (previous year 3,777) as of year-end.