Profits down at Agie Charmilles

The Agie Charmilles group, the world's leading producer of electric discharge machining (EDM) systems and accessories, has reported a drop in net profit of 23.3 per cent last year to SFr37.2 million (1998 SFr 48.5million).

The Agie Charmilles group, the world’s leading producer of electric discharge machining (EDM) systems and accessories, has reported a drop in net profit of 23.3 per cent last year to SFr37.2 million (1998 SFr 48.5million). Sales were down by almost four per cent at SFr901.3 million.

However, a statement from the company’s Zug headquarters said that the Group was entering the year 2000 in a position of strength after struggling with a difficult market environment.

It added that in some markets, the Group achieved very positive results though they were not able to compensate adequately for the general negative trend.

The basic principle of EDM is erosion by sparking between an electrode and the material to be machined, thus producing the shape desired.

The possibilities of EDM are used in the automobile and electronics industries, medical technology, the aerospace industry, telecommunications equipment, consumer goods and other industries.

The company statement reviewing the1999 business year said that the Group suffered a clear decline in sales in Germany after a record year in 1998. The North American machine tool market also suffered a “massive slump” last year and sales by Agie Charmilles did not escape unaffected.

The Group, which made a number of acquisitions last year, views the outlook for the year 2000 as “promising”. It says improved economic indicators in Europe and Asia point to sustainable growth in the industry.

“Thanks to our successful EDM products and the recently acquired activities, we are in an excellent position to profit from the upturn in these markets,” the statement added.

Agie Charmilles – with a workforce of around 2,500 – is the Manufacturing Technology Group of the Georg Fischer Corporation, its majority shareholder. Georg Fischer, which is based in Schaffhausen, presents its annual figures on Tuesday.

From staff and wire reports