Profits unravel at packaging group

SIG expects things to get better in 2002 Keystone

Packaging technology group, Schweizerische Industrie-Gesellschaft (SIG), has revealed a 38 per cent slide in its first-half net profit, which fell to SFr28 million ($16.9 million).

The Swiss firm blamed seasonal factors and a declining investment market while predicting that full-year sales would be basically in line with last year’s figure.

Net profit this year would be slightly lower than that of 2000 when adjusted for the fact that last year’s profit of SFr129 million included some SFr70 million after taxes from one-off financial earnings and book profits on divestments.

SIG, a global top three supplier of packaging systems for the beverage industry, said it expected cost and job cutting measures, the completed integration of acquired businesses and other restructuring measures to lead to a clear improvement in performance in 2002, even if sales did not grow.

Analysts had forecast net profit of SFr26 million to SFr43 million, with the decrease compared with the first half of 2000 being the result of a weak business cycle in the United States, fewer orders and restructuring costs.

swissinfo with agencies