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Half Year Results 2005

Press release 08-05-2004

Horgen, August 5, 2005 – In the first half of 2005, the Group’s order intake amounted to CHF 174.3 million (‑3%). However, the decline in continuing operations was 40% on a like-for-like consolidation basis (excluding Loh, acquired in November 2004). Gross revenues came to CHF 154.0 million (+7%), but declined by 31% when Loh and Ismeca Automation are factored out. The falling volumes originate primarily from Ismeca Semiconductor, followed by SSM Textile Machinery and to a lesser extent from the former Satis.

As a result, operating profit fell to CHF 0.1 million from CHF 20.7 million for the first half of 2004. Net income from continuing operations was CHF 1.6 million (previous year: 17.4), including positive net financial income of CHF 4.3 million. Net income overall was CHF 9.6 million (previous year: 18.1). The difference of CHF 8 million compared with net income from continuing operations results from the sale of Ismeca Automation as at 31 March 2005 .

As at the end of June 2005, the Group reported a net cash position of CHF 42.8 million and an equity ratio of 58%.

Following the nominal value repayment of CHF 6 per bearer share that was approved by the General Meeting on May 18, 2005 , the last trading day for the old shares was August 2, 2005 . 


SSM Textile Machinery recorded a sharp fall in new orders and sales. Healthy order intake from the Indian subcontinent was not enough to offset the slump in orders from China and Turkey. Prospects for the second half of the year look brighter. The ongoing expansion of the own production and customer service sites in China will lower our cost base.

Satisloh posted sales on a par with the previous year’s level for its two component companies combined (Satis and Loh merged in November 2004). While new orders at the former Satis were down, those at Loh were higher year-on-year. Earnings will also remain more or less at the year-back level. As anticipated at the beginning of the year, this will mean that the former Loh will still be contributing relatively little, but that the former Satis will produce a good result.

Ismeca Semiconductor lost substantial ground on both the new order and sales fronts. Looking ahead to the second half, visibility remains clouded by uncertainty about sector growth, as well as sparsely filled order books. The operating loss of CHF 6.6 million includes non-recurring expenditure of CHF 2.0 million in connection with streamlining the product range. The cost structure will improve over the next two years as our own production site in Malaysia is expanded.

Outlook
Order intake has risen significantly compared with the second half of 2004, especially at SSM Textile Machinery. We therefore expect business to be more robust in the coming six months. This also applies to Ismeca Semiconductor, despite persistent uncertainty factors. Both divisions will close the year significantly down on figures for 2004, however. Meanwhile, Satisloh is well on track to repeat the record result of the former Satis.