Swissmetal feels the heat
The Swissmetal group is to cut jobs and introduce shorter working hours as the economic slowdown bites into the company's earnings.
The company, based in canton Solothurn, saw its net profit fall 63 per cent to SFr4.3 million over the first nine months of the year. Although sales remained stable, higher energy bills and restructuring costs were blamed for the decline.
The level of incoming orders bodes ill for the company’s medium term prospects. They fell 37 per cent over the first nine months of the year compared with the same period in 2000.
With no prospect of recovery in sight, Swissmetal will implement a hiring freeze and cut overtime. Some employees will be offered early retirement and up to 80 jobs are expected to be lost in this way by the end of the year.
In its German plant at Lüdenschied, shorter working hours are to be immediately introduced. Similar measures will be taken at Swiss plants at the beginning of the year.
The company is warning that net profit figures for the year as a whole will be significantly lower than last year.
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