Ascom reports drop in net income
The troubled technology group, Ascom, reported a decline in its net income on Tuesday, blaming higher marketing and research costs for the disappointing performance.
The company’s net profit for 2000 was down almost a quarter to SFr67 million ($39.5 million) on sales of SFr3.14 billion. Operating income was down to SFr80 million from SFr135 million.
In a statement, Ascom said it remained confident about the future and that it would keep its dividend pay-out unchanged at eight per cent of its shares’ nominal value.
Ascom had warned in December that its results would fall. The former telecommunications equipment firm is in the midst of refocusing its business on technology and internet-related activities and has seen a series of changes to top management.
Urs Fischer was named chief executive earlier this year to replace the long-time company head, Hans Ulrich Schroeder.
The changes came after a bitter power struggle between the banker, Ernst Müller-Möhl, and the Hasler foundation which held a majority stake in Ascom through voting restrictions.
Müller-Möhl died last year when his private plane crashed but his heirs won a long procedural battle for a single share structure reducing the Hassler foundation’s stake to a minority.
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