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BOTH BUSINESS UNITS SHOW SIGNIFICANT PERFORMANCE IMPROVEMENTS
28 November 2003 - Carlo Gavazzi
| In the first six months of the current financial year ended September 30, 2003, the Zug based electronics group returned to profit and reached an operating revenue on the same level of the previous year period of CHF 98.4 million (+1.4% in local currency). Thanks to operational improvements, the gross margin increased by 4.4 percentage points to reach 39.2% and pre-tax profits grew by CHF 5.0 million to CHF 0.8 million. Net income reached CHF 0.5 million after a loss of CHF 2.9 million in the previous half-year period. |
In the first six months of the current financial year ended September 30, 2003, the Zug based electronics group returned to profit and reached an operating revenue on the same level of the previous year period of CHF 98.4 million (+1.4% in local currency). Thanks to operational improvements, the gross margin increased by 4.4 percentage points to reach 39.2% and pre-tax profits grew by CHF 5.0 million to CHF 0.8 million. Net income reached CHF 0.5 million after a loss of CHF 2.9 million in the previous half-year period. Both core businesses improved their results significantly. Despite the contracting market demand, Automation Components increased operating revenue by 3% and continued to gain market share. Operating profit grew by 37.5% thanks to efficiency improvements in manufacturing. Electronic Packaging, traditionally dependent on the telecom sector, increased operating revenue in local currency by 4.3%. Thanks to restructuring measures enacted earlier, operating profit improved by CHF 4.6 million to reach the planned operating break-even. The first signs of a moderate economic growth are visible. However, a sustained improvement of market demand is not forecasted for the remainder of the current financial year. Nevertheless, the group expects operating revenue and net income to grow over-proportionally in the second half-year compared with the first six months.
http://www.carlogavazzi.com
About: Carlo Gavazzi
Carlo Gavazzi is a diversified, internationally active electronics group designing, manufacturing and marketing electronic equipment targeted at the global markets of industrial automation and information processing.Under the umbrella of a holding company, headquartered in Switzerland, Carlo Gavazzi is organised in two business units. It is the function of the holding company to ensure planning and development of the group's business portfolio, to choose a coherent set of strategies and objectives, to monitor their implementation and the efficiency of the corresponding management tools and processes, to select the upper-level management, to manage corporate finance, controlling, tax planning, management information systems, communication and investor relations. The business units operate separately within the framework of defined strategies and objectives; they are responsible for research and development, manufacturing, quality, marketing and sales, human resources, logistics, finance and control. Group executives lead their business units in line with the holding's objectives as businessmen with strong entrepreneurial drive and responsibility. Objectives. To provide our customers with technologically innovative, high quality and competitive solutions, in compliance with their requirements and expectations. To create an environment conducive to our employees' professional and personal development. To obtain a fair and equitable return for our shareholders through sustained development of our core activities. Principles. To create added value for our customers with our products and services in order to strengthen their market positions and establishing long-term partnerships. To adapt structures and processes to market needs and delegate responsibility. To promote an environment conducive to mutual respect and cooperation. To mark clear leadership and integrity by doing what we say. |
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