Phonak turns a profit again

Phonak shares have risen by more than 100 per cent this year. Phonak

Hearing aid manufacturer Phonak reported on Tuesday that it had returned to the black, posting a first-half net profit of SFr25.8 million ($19.61 million).

Sales for the first six months reached a record level of SFr300 million, boosted by strong sales of new products and signs of market growth in some markets.

This represented a 13 per cent increase over the March – September period last year.

The news sent the share price rising by more than six per cent in early morning trading at the Zurich stock exchange to SFr28.30 from Monday’s close of SFr26.60.

Shares in the company, which is based in Stäfa, canton Zurich, have risen by more than 100 per cent over the past 12 months.

Phonak, which provided communications systems for Switzerland’s victorious America’s Cup team Alinghi, said in a statement that earnings before interest, tax and amortisation had jumped 50 per cent compared with the comparable period last year to SFr39 million.

The company said in its outlook that its sales target for the year as a whole was SFr600 million.

Feintool figures

In other business news on Tuesday, the Feintool engineering company of Lyss reported that it too had returned to the black.

The firm said that cost cuts had helped it achieve a full-year net profit of SFr1.6 million from a loss of SFr7.3 million a year ago.

However, Feintool said that the board of directors would not be proposing a dividend payment to the annual shareholders’ meeting.

The company, which manufactures cutting equipment, said that orders in hand were “significantly higher” than at the beginning of its previous financial year.

A statement said the company was starting 2003-2004 with brighter prospects and a good chance of returning to growth.

Shares in the company have risen by almost 60 per cent over the past year.

swissinfo with agencies

In brief

The Phonak hearing aid group has reported a net profit of SFr25.8 million for the first six months of its financial year.

Sales reached a record SFr300 million.

The Feintool engineering group has returned to the black, posting a full-year net profit of SFr1.6 million. It made a loss of SFr7.3 million last year.