Sarna issues profit warning
The Sarna polymer products supplier reported on Monday that its earnings this year would be "clearly below" the SFr41 million ($24.94 million) achieved in 2000.
Citing poor demand in a lacklustre economic environment, Sarna said it was withdrawing from the high-tech Sarnatech division and would refocus on its two divisions supplying the construction and car industries.
In a statement from its headquarters in Sarnen, canton Obwalden, Sarna said it would develop “appropriate alternatives” for Sarnatech, which had sales of SFr106 million and supplies the electrical and electronics industries, telecommunications, office automation, medical technology and watch-making companies.
The company gave no details about the plans for the loss-making high-tech division, but said it had decided not to make the sizeable investment in Sarnatech needed to restore and maintain profitability.
The division accounts for 12 per cent of group sales and has a workforce of more than 500 people.
Sarna reported that the prospects for the profitable Sarnafil and Sarnamotive divisions were “positive”.
The statement said Sarna expected sales of more than SFr900 million this year, up from SFr860 million in 2000.
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