Mikron posts heavier loss than expected

Mikron blamed delayed orders for its poor fourth quarter results Keystone Archive

Swiss specialised machinery maker Mikron lost more than SFr125 million ($74 million) in 2001.

The firm, which supplies the electrical appliances, construction, household, medical, consumer electronics, mechanical engineering and car industries, had announced in October that it expected a loss of up to SFr95 million for 2001.

Mikron said fourth quarter results had been below expectations due to delayed production equipment orders in October and November. However, the company revealed that it was implementing a rigorous cost management programme in an effort to break even in 2002.

Mikron commented that it expected its markets to remain poor in the first half of 2002, resulting in a net loss, before recovering in the second half of the year. The cost of adjusting capacity and cost structures had already been booked in 2001, it added.

The company said it expected significant order volumes from Asia to boost production in the course of 2002.

Orders in 2001 were an estimated SFr501 million, down 30 per cent from the previous year. Net sales were an estimated SFr609 million, down eight per cent from 2000.

Mikron said it decided to write off a further SFr22 million on top of the SFr66 million already announced, in view of cutbacks by communications companies, especially in the area of third generation mobile phone technology.

swissinfo with agencies