Business Spotlight

There was more bad news for Swisscom staff in a week that also saw the end of an era for the country's beer producing industry. At the same time, another clutch of results pointed to the durability of the world economic recovery.

There was more bad news for Swisscom staff in a week that also saw the end of an era for the country’s beer producing industry. At the same time, another clutch of results pointed to the durability of the world economic recovery.

Swisscom, the country’s biggest telecommunications operator, confirmed it was slashing another 3,000 jobs between 2001 and 2003. In addition, another 3,000 positions are to be struck from its payroll through outsourcing deals. The losses come on top of 4,000 job cuts announced in 1998. The former monopoly said it had to remain competitive as other operators continue to cut prices. Trade unions denounced the move and called for negotiations.

The country’s biggest beer producer, Feldschlösschen, announced plans to auction off its beverages division by the end of the year to concentrate on its real estate business. Analysts said the company was no longer able to compete on the international stage.

The pharmaceuticals company, Roche, published strong annual results with a 12 per cent increase in sales figures to almost SFr28 billion. Net profit advanced to SFr5.8 billion.

The cement maker, Holderbank, surprised analysts with 1999 net profit up 16 per cent to SFr795 million.

The Geneva-based testing and verification business, SGS, swung back into the black in 1999 after a major shake-up. Net profit before divestments was SFr113 million. It’s a far cry from 1998 when the company showed a loss of SFr289 million.

Travel giant, Kuoni, announced plans to increase its capital with a one for ten stock split to finance its expansion plans.

And in economic news, the consumer price index showed a small but unexpected decline for March boosting hopes that inflationary pressures are now under control.

By Michael Hollingdale