Report on the business year
Return to profit - solid starting position for future growth
Our most important goal has been achieved: HUBER+SUHNER returned to profit in the 2003 business year. Operating profit (EBIT) increased significantly to CHF 6.3 million (2002: 71.2 million) and, after a substantial group loss of CHF 75.2 million in 2002, the Group posted net income of CHF 6.6 million, despite a decline in consolidated sales for the third consecutive year. At CHF 522.2 million, sales were down 11.4% on the previous year figure of CHF 589.5 million. Adjusted for changes in the portfolio (5.2%) and currency influences (2.2%), the decline in sales amounted to 4%. At CHF 525 million (582.2 million) incoming orders fell less substantially than sales, while the gross margin was successfully enhanced from 26.9% to 32.6%.
Despite the effect of weaker markets, lower sales, further costs for restructuring measures and in-ventory depreciation, we successfully returned the company to profit thanks to the rigorous adjustment of our cost structure. In our consolidated balance sheet, our equity ratio climbed to an excellent 62.7% of total assets (51.9%) and last year’s net debt load was converted into a net liquidity position thanks to our substantial reduction of bank debt.
Business strategy proving successful
2003 was a year of consolidation and a range of strategic and organizational adjustments. Today, HUBER+SUHNER has a solid basis, and it is from this basis that it will build future success. Under the motto ”Excellence in Connectivity Solutions”, we intensified the focus on our core business: electrical and optical connection technology. With our core competencies in high-frequency technology, fiber optics, and cable and polymer technology, we geared our activities to our main markets: communication, transportation and industry. This gives our company a well-balanced level of diversification, making us less vulnerable to fluctuations in the individual markets.
The full report read here.
