Home / Knowledge / News / Textiles / SSM Textile Machinery's order intake lower in H1
SSM Textile Machinery's order intake lower in H1
18
Aug '08
Sale of Satisloh division communicated mid-June. Orders received for continuing operations reached CHF 89.2 million (-24%) in the first half.

Gross revenues amounted to CHF 91.0 million (-16%). The exchange rate of the US dollar, which on average was 15% weaker than during the year-back period, had a negative impact both on sales and on the financial result.

The Group reported an operating profit from continuing operations of CHF 0.4 million (1H 2007: 5.6 million). The operating result includes restructuring costs amounting to some CHF 4 million at SSM Textile Machinery (closure of Hacoba).

The net loss from continuing operations amounted to CHF -1.5 million (1H 2007: +5.1). Net earnings (incl. Satisloh operations held for sale) came to CHF 9.2 million (1H 2007: 21.2). This includes currency losses of CHF -5.4 million (1H 2007: +2 million).

In a difficult sector environment, SSM Textile Machinery's order intake was 9% lower than the previous year. Sales declined by 15%. While the order intake from the Indian subcontinent and Latin America increased, Asia remained at the same level as the previous year.

Turkey recorded a marked decline. Despite a lower volume, the gross margin increased slightly. All costs (CHF 4 million) arising in connection with the closure of the Wuppertal site announced at the beginning of the year were recorded in the first half of the year.

The operating result was therefore only just above break-even point, but will no longer be depressed by restructuring costs in the second half of the year.

Mid-June saw the announcement of plans to sell the Satisloh division to the French group Essilor. The documentation has since been submitted to the competition authorities. The transaction is expected to go ahead in the second half of 2008. The division's operations are thus stated as "held for sale."

Satisloh reported an 18% drop in new orders and an 11% fall in sales. After adjustment for currency factors, the decline still came to 10% and 2% respectively.

The gross margin increased slightly after adjustment for currency factors. Thanks to rigorous cost management, operating profit came to CHF 15.7 million (1H 2007: 16.6), which corresponds to 14% profitability (1H 2007: 13%).

Ismeca Semiconductor recorded a sharp drop in new orders, which were down by one third on the previous year's high figure. The weakness of the US dollar was compounded by a slump in the semiconductor industry.

Thanks to a good order backlog at the beginning of the year, sales came to a respectable CHF 45 million. The improvement in the gross margin – thanks to shifts in costs – had a positive impact.

This led to a slight improvement in the operating result of CHF 1 million (1H 2007: CHF 0.6) despite an 18% fall in sales.

Outlook:
Business conditions in the second half of the year are expected to remain challenging in all divisions. Thanks to solid strategic positions and a lean cost base, the prospects for a satisfactory year remain intact

Schweiter Technologies AG


Must ReadView All

15 trade associations urge nations to safeguard WTO system

Apparel/Garments | On 15th Dec 2017

15 trade associations urge nations to safeguard WTO system

Fifteen trade and industry associations from across the world have...

India’s cotton output projected at 377 lakh bales

Textiles | On 15th Dec 2017

India’s cotton output projected at 377 lakh bales

India’s cotton output in the 2017-18 season is likely to increase by...

Ethiopia’s Kombolcha Industrial Park attracts foreign firms

Apparel/Garments | On 15th Dec 2017

Ethiopia’s Kombolcha Industrial Park attracts foreign firms

Strategic location, modern factory facilities and proximity to the...

Interviews View All

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search