sia Abrasives, the internationally-active manufacturer of coated abrasives, is feeling the effects of the worldwide economic slowdown: as a result of this difficult situation, the sia Group is expecting net sales for 2001 to be marginally lower than for the previous year (CHF 225.7 million). EBIT and net income for 2001 are also expected to be below the excellent figures achieved in fiscal 2000.
The slowdown in the global economy following the terrorist attacks in the USA has also had an impact on business for sia Abrasives, which is listed on the Swiss Stock Exchange SWX and has its headquarters in Frauenfeld. As a consequence of the international uncertainty, industrial users and specialist resellers on all continents have made sharp reductions in their stocks of coated abrasive systems. As the world’s third largest supplier of coated abrasive systems with more than 90% of its production exported, sia Abrasives has experienced an falloff in the number of orders it is receiving.
Partial compensation thanks to new products and marketsThanks to the growth strategy being pursued by sia Abrasives, the internationally active Group is able to compensate to some extent for the falloff by means of acquisitions, the launch of new products and by opening up new markets. In view of the difficult economic climate, the sia Group is expecting net sales for 2001 to be somewhat under the year-back level (CHF 225.7 million). In its mid-year report, sia Abrasives was still anticipating a slight climb in both net sales and income.
Decrease in EBIT and net incomeThe reduction in demand being experienced throughout the world for coated abrasives means that operating income before interest and taxes for sia Abrasives in 2001 will be less than for the previous year: the sia Group expects operating profit margin to be between 9% and 10% (last year: 10.8%). Net income, too, is likely to be lower than for the previous year. sia Abrasives expects that further acquisitions made in the course of the coming year will generate the level of growth that the Group is aiming for. Priority in respect of potential acquisitions is being focussed on the USA.
For further information
Peter A. Schifferle, CEO
Gerhard Mahrle, CFO
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). |
