Daetwyler nearly doubles group profit in first half

Altdorf, Switzerland - The Daetwyler Group in the first half of 2007 achieved its best result ever. Net revenue increased by 17.9 percent to CHF 731.1 million (€445 milion). Profit nearly doubled to CHF 60.5 million. The rubber division matched this performance, and is seeking a manufacturing location in Mexico.

In the corporate statement accompanying the announcement, Dätwyler management said, "This marked improvement in profitability reflects the consistent implementation of the niche strategy, high capacity utilisation, further productivity gains as well as favourable economic conditions." For the full year, the Daetwyler Group is optimistic and anticipates considerable growth in year on year revenue and earnings.

Daetwyler Rubber, increased its net revenue by 6.0 percent to CHF 78.0 million for the first six months of 2007 from CHF 73.6 million a year ago. Excluding acquisitions and disposals, the organic growth was 7.3 percent.

Fuelled by high capacity utilisation, increased manufacturing at the Czech plant and ongoing productivity improvements, operating profit (EBIT) climbed by 75.7 percent year on year to CHF 6.5 million from CHF 3.7 million. In the automotive business, high sales in Europe contrasted with weak demand from the American automotive industry.

Daetwyler Rubber is evaluating a location for a manufacturing facility in Mexico, as a base from which to increase its activities in the NAFTA region.

As part of the focusing strategy, the construction business completed the sale and transfer of its sheet product segment (annual revenue of about CHF 6.0 million) in the first half of the year.

The Industrial products business signed a letter of intent for a major long-term contract with an unidentified customer. Its expected annual volume is more than CHF 30 million. Signing of the final agreement will lead to considerable capital expenditure during the last six months of the year. Given the high volume of orders in all three businesses, the Group is confident that Daetwyler Rubber will again deliver sustainable growth in revenue and earnings for the second half of 2007, supported by targeted spending to expand capacity.

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Press release from Dätwyler Holdings