Annual Meeting approves all proposals
Despite lower growth due to seasonal factors, sia Abrasives got off to a good start in 2005. In local currencies, first quarter sales were slightly higher than in the year-earlier period. For the current year, sia Abrasives expects both sales and earnings to reach the targets. The Annual Meeting of Stockholders held on April 20, 2005 approved all the proposals put forward by the Board of Directors. The dividend has been increased from CHF 6.75 to CHF 8.00.
“Last year sia Abrasives expanded organically and posted a marked increase in earnings”, announced CEO Peter A. Schifferle at the Annual Meeting of Stockholders on April 20. The employees made a tremendous contribution to the solid business performance, he went on to say. As a token of appreciation for their great commitment during 2004, sia Abrasives rewarded the entire workforce, numbering some 1000, with a special bonus.
Sales growth in the first quarter 2005Seasonal effects (long winter, new construction sites closed down for a long period especially in Europe, fewer working days due to Easter) curbed sales growth in the first quarter of 2005. In addition, the announced price increase, now largely implemented, triggered pre-increase buying. At the end of March 2005, local currency sales were slightly higher than last year. sia Abrasives is on track with its performance. Tight cost management has helped a lot, and the rationalization effects of the capital spending programs have also been greater than expected.
A selective acquisition strategy will support organic growth. By gaining new customer groups and markets and by expanding geographically, sia Abrasives is seeking to grow its market share. For the current year, management expects to achieve the targeted sales growth of 4% to 6% and an operating profit (EBIT) margin of 10% to 12% unless the business environment changes significantly.
Higher dividend paidThe 26th Annual Meeting of Stockholders of sia Abrasives Holding AG held at Frauenfeld Stadtcasino on April 20, 2005 was attended by 255 stockholders holding 447’763 votes or 60.3 % of the total registered shares entitled to vote. The Annual Meeting approved all the proposals put forward by the Board of Directors and discharged the Board of Directors and Executive Committee from liability for fiscal 2004. Stockholders will receive a dividend of CHF 8.00 (2004: CHF 6.75) per registered share. The Annual Meeting of Stockholders approved the annual report, company financial statements and consolidated financial statements for 2004 as presented. Hans-Ulrich Spiess (Chairman), Martin Bernet (Vice Chairman), Ernst Kessler and Jürgen Rauen were reappointed to the Board for another three-year term. PricewaterhouseCoopers AG, Winterthur, will act as statutory and Group auditors for a further year.
For further information
Peter A. Schifferle, CEO and Executive Director
Gerhard Mahrle, CFO and Investor Relations
Phone: +41 52 724 45 75
Fax: +41 52 724 45 70
E-mail: ir@sia-abrasives.com
Internet: http://www.sia-abrasives.com/
® Correct nomenclature for sia Abrasives Holding AG
As there are other companies and organizations that use the same abbreviation as our company, we would be grateful if you could help to avoid any misunderstandings by always writing our name as follows: sia Abrasives (never just sia by itself). |
