In the first half of the year, orders received amounted to CHF 142.1 million (-6%), while sales came to CHF 130.4 million (-20%). The decline in comparison with the previous year is primarily attributable to the continuing difficult market conditions affecting Ismeca Semiconductor and Ismeca Automation. Satis Vacuum reported gratifying sales and SSM Textile Machinery maintained its year-back level.
For the Group, this resulted in an operating profit of CHF 2.7 million and net income of CHF 3.9 million. The operating profit includes value adjustments totalling CHF 3.1 million on inventories at Ismeca Semiconductor. Currency gains and a low tax rate had a positive impact on net profit.
The solid balance sheet ratios showed a further improvement in comparison with the end of 2002: as of June 30, 2003, cash and cash equivalents amounted to CHF 51 million, while net cash stood at CHF 19 million (+CHF 13 million compared with the end of 2002). Interest-bearing liabilities were further reduced by around CHF 10 million. The equity ratio increased to 54%.
SSM Textilmaschinen
Orders received decreased by 14%, primarily because of a weaker market in China. However, sales were close to the previous year's level at CHF 57 million. Indeed, the operating profit of CHF 8.7 million actually represented a slight increase in the EBIT margin to more than 15%. For the second half of the year, earnings are expected to be slightly weaker on a similar sales volume.
Satis Vacuum
At CHF 33 million, orders received were on a par with the previous year. Sales came to CHF 31 million, which represents a 25% decline in comparison with the exceptionally strong previous year. Cost-cutting programmes and the absence of restructuring costs relating to the precision optics business led to an improvement in operating profit by more than 40% to CHF 3.7 million. This corresponds to an EBIT margin of more than 12%. The positive business trend is expected to continue into the second half of the year.
Ismeca Automation
Because of the economic situation, orders received fell short of expectations, as did sales. As a result, the division failed to reach break-even, although the cost-cutting programmes introduced made it possible to keep the operating loss within limits at CHF 3.4 million. Sales and earnings are expected to show an improvement in the second half of the year. However, the full year is expected to close with a loss.
Ismeca Semiconductor
Orders received increased by 25% to CHF 30 million, but still persisted at a low level. The sales volume of CHF 28 million was below break-even, resulting in a negative operating result of CHF -5.7 million (including a CHF 3.1 million value adjustment on inventories). Business is expected to be similar in the second half of the year, albeit without further value adjustments on this scale. There are still no signs of any rapid upturn.
Outlook
By and large, the second half of the year is expected to see a continuation of the trend to date. As most structural adjustments have now been completed, an economic recovery would have a particularly major impact on earnings.
Please find attached the semi-annual report including key figures according to IFRS, consolidated balance sheet and consolidated income statement.
