Half-year report 2003HUBER+SUHNER on the road to recovery
Despite the ongoing difficult market situation and correspondingly lower sales, HUBER+SUHNER made a return to profit in the first half of 2003. The company made great progress compared to the prior-year period, posting an operating profit (EBIT) of CHF 3.8 million (prior year: CHF -39.0 million) and net income of CHF 1.6 million (-36.9 million).
The return to profit was made possible by a systematic realignment and significant cost reductions. Net sales were down 13% (6% when adjusted for currency and portfolio movements) in comparison to the prior year figure of CHF 267.9 million (307.4 million). The volume of incoming orders fell 17% to CHF 267.4 million (322.3 million).
Incoming orders and net sales balanced each other out in the first half of the year with a book-to-bill ratio of 1.0, and in recent months have stabilized at a low level. The gross margin rose to 33% (prior year: 27%), due in large part to the optimized utilization of capacities and the portfolio streamlining measures implemented.
The balance sheet was strengthened once again by a further reduction of the net debt from CHF 62.2 million (as of December 31, 2002) to CHF 38.4 million.
