Above-average growth in sales and income for fiscal 2000 / plans to open up new markets (12/04/2001)
sia Abrasives can look back on a successful year in 2000. As already announced this March, the company increased consolidated net sales by 10.3% to CHF 225.7 million (1999: 204.7 million). Operating income before interest and taxes (EBIT) amounted to CHF 24.3 million (1999: CHF 21.1 million), which represents an overproportionately high growth of 15.7% compared with net sales. Net income amounted to CHF 16.8 million (1999: CHF 17.8 million). After factoring out approximtely CHF 3 million in extraordinary gains resulting from the sale of real estate in 1999, net income climbed by 13.6%.
In fiscal 2000 and during the opening months of this current year, sia Abrasives focused in particular on strengthening its market position. Activities in this respect included sia Abrasives Company Limited, Hong Kong, the joint-venture set up a year ago, constructing a modern conversion plant for the manufacture of abrasive belts and discs in the Southern Chinese town of Guangzhou. When this facility goes on line in mid-2001, sia Abrasives will be in a position to supply the Chinese market more rapidly and tailor services more effectively to meet specific needs with locally-manufactured products. The Group company of sia microtec ag, which was established in Frauenfeld in December 1999, also expanded its market position in abrasives for microfinishing applications during its first year of operations and broadened its product range. In the current year, it is launching a further innovative product: a diamond finishing film for precision applications. A reengineering project successfully reorganized production, distribution and internal operational procedures in our Group company in the United Kingdom.
Parallel to inner growth, the sia Group is also pursuing a deliberate strategy of acquisitions. Due diligence proceedings for the takeover of the non-woven abrasives division of the Freudenberg Group, Fibral Abrasives in Halifax/UK, have now been completed and negotiations regarding details of the asset deal have now begun. Non-woven abrasives are complementary products to coated abrasives. The objective behind this planned acquisition is to further expand our market position and boost growth potential. In addition, we intend expanding our activities to strengthen our market presence in Europe and the USA.
Activity during the first quarter of fiscal 2001 was somewhat more subdued than the excellent results achieved in the comparable period last year. This was due, on the one hand, to the general slowdown in the economy and, on the other, to the negative ef-fects of exchange rates on sales and revenues during the first three months. Nonethe-less, sia Abrasives still expects sales to climb by 6% to 8% for the current business year.
® 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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