sia Abrasives registers overproportionately high net income (06/03/2001)
sia Abrasives can look back on a highly successful year’s business in 2000. Consolidated net sales rose by 10.3% from the previous year’s CHF 204.7 million to CHF 225.7 million. With this result, the company, which went public in October 1999, achieved growth objectives as forecast and grew three times faster than the rate for the market as a whole.
During the year under review, operating income before interest and taxes (EBIT) demonstrated overproportionately high growth of 15.7% in comparison with net sales and climbed to CHF 24.3 million (1999: CHF 21.1 million). This is the result of a stronger position on the market and tight cost management. Operating profit margin rose from 10.3% to 10.8% and was thus clearly above the targeted 10%. Investments in processes, manufacturing plant and buildings totaling CHF 20.6 million played a major role in boosting productivity. At CHF 16.8 million, net income was CHF 1.0 million lower than for the previous year. However, the two years cannot be directly compared, since net income in 1999 was influenced by extraordinary revenue to the amount of CHF 3.9 million from the sale of real estate holdings. If this effect is eliminated, the increase in operating income in the year 2000 came to CHF 2.0 million or 13.6%.
Due diligence proceedings prior to the takeover of the Freudenberg Group’s non-woven abrasives business have to date proved positive. The Board of Directors and Group Management of sia Abrasives have initiated the next steps for drawing up a definitive purchase agreement.
Although uncertainty concerning the present economic climate in the USA could have a general impact on the further development of the companies in Europe, sia Abrasives nevertheless expects to achieve internal growth of 6 to 8% during the current fiscal year.
The annual general meeting of sia Abrasives will be held on May 16, 2001. The Board of Directors will be proposing to the general meeting that the dividend be increased by 12.5%, from CHF 6.- per registered share to CHF 6.75. This represents total dividend payments of CHF 5.1 million or 30% of consolidated net income.
® 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).
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