Daetwyler reports lower sales, profits for 2009

ERJ staff report (DS)

Schattdorf, Switzerland -- Daetwyler Group reported positive sales and profits for the 12 months to 2009, albeit somewhat lower than the previous year.

The company said net revenue declined by 14.0 percent to CHF 1113.4 million (euro 776 million) the net result fell by 48 percent compared to the record level of 2008 to CHF 57.2 million (euro 40 million). Despite restructuring charges of CHF 19.5 million an EBIT margin of 6.3% resulted.

In the Rubber Division, net sales declined by 19.5% to CHF124.7 million. Despite strict cost management operating profit (EBIT) in the year under review fell by 53.2% to CHF 7.4 million (previous year CHF 15.8 million). In addition to reducing the number of temporary and fixed-term staff members and encouraging staff to take holiday and flexitime credits, the Division introduced short time working at the Schattdorf plant for the first nine months of the year.

At the end of 2009 Daetwyler Rubber closed its US plant and successfully commenced operations at its new production facility in Mexico. The relocation to Mexico marked the conclusion of the company's multi-year programme to optimise its production sites. In addition to the new site in Mexico, the company is also investing in the expansion of its existing production sites in the low-cost countries of the Czech Republic and the Ukraine. This will enable it to benefit from annual savings of several million Swiss francs in the future.

Daetwyler Rubber also signed long-term agreements with all its major automotive customers during 2009. The company said, "Daetwyler Rubber is benefiting from the fact that in challenging economic times, customers focus on reliable suppliers with a healthy balance sheet and high-quality products. The numerous new projects will be reflected in higher future market shares." The company said it recruited a number of experts from other companies.

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Press release from Daetwyler Group

Annual report from Daetwyler Rubber