Conzzeta Group Sustains Revenue Growth

In the first four months of the new business year (January to April 2008), the Conzzeta Group increased consolidated net revenues to CHF 489.1 (473.7) million, a rise of 3.2%. Revenues and earnings were affected by the strengthening of the Swiss franc against key export currencies. After adjustment for currency translation effects, revenue growth amounted to 7.4%. The operating result of CHF 28.7 (32.5) million includes special costs of CHF 10 million incurred by the Foam Materials business unit. On the strength of the healthy order books in the dominant machinery and systems engineering business activities, the Conzzeta Group expects the high level of capacity utilisation to be sustained. However, it is hard to say whether capital spending will remain so vigorous in the second half of the year.

The Sheet Metal Processing Systems business unit (Bystronic) reported sales of CHF 240.2 (242.4) million for the first four months of 2008. This slight fall compared with the previous year was attributable to exchange rate trends. Adjusted for currency translation effects, sales grew by 4.6%. The order backlog and incoming orders remained at a high level. Customers in Europe as well as North and South America continued to show a willingness to invest. In China, by contrast, growth slowed in the first four months compared with last year.

In the first four months of 2008, the Glass Processing Systems business unit (Bystronic glass) was able to increase substantially the number of customer projects completed compared with the same period a year ago. As a result, sales rose by 27.3% to CHF 85.2 (66.9) million. The insulating glass, architectural glass and laminated safety glass segments turned in a very positive performance. The latter has almost filled its order books for the 2008 business year already. As the only exception, the US market is showing signs of weakening, due to the decline in construction activity. The successful completion of major projects and high level of capacity loading are having a positive impact on profitability at all production sites. The order backlog and inflow of new orders are above the previous year's level.

Cautiously positive outlook
On the strength of the healthy order books in the dominant machinery and systems engineering businesses, the Conzzeta Group continues to reckon with a high level of capacity loading in these sectors. However, there are signs of the economic upswing weakening and a slowdown in the second half of the year cannot be ruled out. The sharp fall in the parity of key currencies against the Swiss franc will cut into revenues and earnings, with a significant impact on the annual result.

Web: http://www.conzzeta.ch