Bucher sees lower profit

Bucher Industries expects sharply lower net profit in 2001, down from the SFr79.9 million ($48.1 million) it generated in 2000.

The Swiss industrial group said in a statement on Friday that sales should hold steady at around SFr1.5 billion, but operating profit will not reach last year’s SFr102.2 million and net financial results will decline.

“Since the half-yearly result for 2001 was published, the economic climate in the markets of our divisions has increasingly deteriorated. This resulted in a lower level of incoming orders and intensified competition coupled with in-creased margin pressure,” the company said.

Realigning costs

Bucher is also introducing measures in all divisions to realign costs and for more intensive work with markets.

The company noted that the one-off costs at Bucher Automotive resulting from the major upgrading of the divisions’ information technology system, and at Bucher Hydraulics for start-up costs on internal gear wheel pump production, which has recently been taken over, are also taking their toll on the result for the current year, but will have less of an impact next year.

The company did say that it expected economic conditions to improve in 2002, although no upturn was expected to be seen in the first half of the year.

swissinfo with agencies