Emmenbrucke, Switzerland – After a positive development in the
first half of 2008 for Schmolz+Bickenbach, in the second half-year order
bookings and shipped volumes fell sharply. Simultaneously, falling raw material
and alloy costs put sales revenues under pressure. As from the fourth quarter of
2008, capacity reduction measures were unavoidable. Given the low visibility in
the markets, it is currently difficult to make any statement about the further
progress of business in 2009.
Schmolz+Bickenbach expects that developments may be better in the energy
extraction and generation segments. In addition, the company expects revenue and
earnings for 2009 to be lower than in the preceding years. The adaptations that
the company has made in its workforce and capacities, rigorous cost control,
strict working capital management, the cost-reduction and financing measures
that have been introduced and the investment projects that were implemented in
the last few years make the company confident that with the position it occupies
in the engineering, stainless and tool steels segments, the company is
well-equipped for the challenges of the current year.
Submitted by
Schmolz Bickenbach March 26