UBS hit by economic slowdown
Another indication that a global economic slowdown is hitting Switzerland came on Tuesday when the nation's biggest bank, UBS, saw its net profit tumble 35 per cent in the third quarter to SFr903 million ($545 million).
The results were even worse than analysts’ forecasts and UBS said it expected deteriorating economic conditions to continue to effect the bank’s performance in the short-term.
Other companies added to the bad news this week
Europe’s largest maker of orthopaedic devices, Sulzer Medica, saw its net profit fall 49 per cent in the third quarter, to SFr20.7 million.
The company, facing hundreds of lawsuits over faulty hip and knee implants in the United States, said sales rose 5 per cent but analysts countered that sales were actually down when acquisitions were stripped out.
Job cuts at Huber and Suhner
Huber and Suhner is to cut hundreds of jobs after seeing sales fall 20 per cent and orders decline more than 30 per cent over the past ten months.
The maker of communications technology and polymer systems says it will cut 450 of its 2,500 strong Swiss workforce and a further 200 jobs at foreign units.
The company had already slashed 440 jobs earlier this month in the United States, Canada and Britain.
The engineering group, ABB, is shaking up its research and development department with the loss of 135 positions.
Swissmetal is to cut jobs and introduce shorter working hours after seeing third quarter net profit fall almost two thirds and the luxury goods group, Richemont is forecasting a significant decline in net profit for the second half of the year.
Troubled porcelain maker
Finally, the traditional Swiss porcelain manufacturer, Bopla!, went into liquidation this week threatening up to a 1,000 jobs in five countries.
Management at the Langenthal-based company said its financial partners had lost confidence in the company despite a turnaround in its fortunes.
The canton Zurich parliament on Wednesday backed a SFr300 million ($183 million) investment in the country’s new national carrier.
In favour of the investment were 101 deputies, while 67 voted against. The proposal will now be put to the people in a cantonal vote.
Zurich’s investment makes up the bulk of SFr400 million that the cantons are expected to invest in the re-launched carrier.
And finally, the pharmaceuticals company, Berna Biotech, has seen sales of its smallpox vaccine leap on fears that terrorists could use the disease as a biological weapon.
Biotech said in a statement on Monday that it had generated SFr150 million in one-off sales of the vaccine. Sales of its remaining stock are expected to bring in up to SFr70 million more.
The figures almost match the company’s overall sales total for last year.
By Michael Hollingdale
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