SIG takes a loss to pack its future
The SIG company has reported a loss of €20 million (SFr31.63 million) in 2003 as it continues to focus on the drinks packaging business.
Sales at the industrial concern, which is based in Neuhausen am Rhein, rose by one per cent to €1.896 billion.
Operating profit in core activities slipped to €120 million, down from €139 million in 2002 when SIG reported a net profit of €10 million.
SIG said in a statement on Monday that it expected growth in sales and a “significantly improved” operating and net profit for this year.
It added that the upbeat outlook and solid finances allowed it to maintain the proposed dividend at SFr1 per share.
Solid foundation
The company, which used to produce firearms and railway carriages, last year decided to position itself as a supplier of packaging materials, equipment and services for the growing beverages industry.
The statement said that this focus was creating a “solid” foundation for generating sustainable value.
SIG said it expected continued growth in the beverage cartons sector, as well as demand from Russia, the Middle East and China and new orders for beverage machines and equipment.
SIG began selling off a number of non-core businesses in early 2003. SIG Pack – active in the sector of dry goods – will be transferred to a new owner.
With the strategic repositioning completed, company chairman Willy Kissling will not stand for re-election at the next shareholders’ meeting.
He is due to take over as chairman of the Forbo flooring company, which is trying to overcome two years of poor results.
Lambert Leisewitz has been nominated to replace Kissling at SIG.
swissinfo with agencies
SIG made a loss of €20 million (SFr31.63 million) in 2003.
It cut net debt last year to €232 million from €279 million at the end of 2002.
The company is forecasting “significantly improved” operating and net profit for this year.
SIG has been shrinking in recent years from a group that once built trains and made handguns and hunting rifles.
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