Daetwyler reports higher sales, profits

ERJ staff report (DS)

Altdorf, Switzerland -- In 2010, the Datwyler Group increased its net revenue by 17.6 percent to CHF 1,319.5 million (euro 1025 million) in an environment of economic recovery. The net result rose by 54.2 percent to CHF 98.2 million (euro 76.3 million) . The EBIT margin was 9.7 percent. The company said it expects to relocate about 100 jobs from its Swiss Cables site in Altdorf to China. Datwyler expects all four divisions to experience healthy demand in 2011.

In the Sealing Technology Division, the recovery of the automotive industry led to a 13.4 percent rise in net revenue. Despite the weakness of the euro, thanks to the production facilities in Eastern Europe and Mexico the operating result (EBIT) at Division level rose by 38.4 percent compared with crisis-hit 2009.

In the Cabling Solutions Division, net revenue increased by 10.0 percent. After adjustment for the negative currency effect and the positive contribution of the increase in the price of copper, organic revenue grew by 6.5 percent. The progressive weakening of the euro during the year under view led to a substantial 55.6 percent reduction in the operating result (EBIT), with only the foreign subsidiaries generating earnings.

fter adjustment for the negative currency effect, the Pharma Packaging Division posted 7.0 percent organic growth in revenues. At 12.3 percent, the EBIT margin fell short of expectations as a result of rising raw material prices and one-time charges incurred for the further optimisation of quality management.

in 2010 the Pharma Packaging Division started construction on its own production plant in India. It is scheduled to come on stream early in 2012. At the same time, the division is evaluating alternatives for its own production site in China.

After the start-up of a plant in Mexico in 2009, in 2010 the Sealing Technologies Division completed preparations for the construction of a plant in China. Production of the first prototypes is scheduled for the second quarter of 2011.

As the market is shifting toward Asia, Datwyler plans to relocate production of lift cables to its existing plant in China. The Group is also considering moving its cable assembly operations to Eastern Europe. Overall, Datwyler plans to cut around 100 jobs at its Altdorf site between now and 2012. The legally required consultation process with the staff association and unions has been initiated. Plans are in place for a redundancy scheme which includes a job placement centre. Implementing these planned measures is expected to result in one-off costs of approximately CHF 10 million in 2011. At the Altdorf site of Cabling Solutions Division as well as in Schattdorf (Sealing Technology Division) the two extra working hours per week will be discontinued from 1 April 2011. The additional hours worked since the beginning of 2011 will be fully credited.

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Press release from Daetwyler