 |
 |
||||||
[August 2001]
Nextrom returns to profit
Nextrom Holding SA, Ecublens, Switzerland, the world’s premier supplier of manufacturing solutions and services to the Optical Fiber and Fiber Optic Cable industries, has announced its consolidated results for the first 6 months of 2001.
The first 6 months of 2001 have seen Nextrom returning to profit, thanks mainly to the good performance of its business segment Fiber Optics, but also due to positive Operating results for the to be discontinued operations Metallic Cable & Pipe and Film. The order intake for the first half year amounted to CHF 253 million, which represents an increase of 22% compared to CHF 208 million during the same period in 2000. This increase is mainly the result of a continuous strong demand for Nextrom’s Fiber manufacturing solutions. Nextrom’s order intake in this business segment reached CHF 165 million during the first six months of 2001, 77% more than during the same period last year. This high order intake is partially due to the recent high investment activity in the Fiber Optics customer industry in Asia, compensating for a temporary slow down in the Americas. The cumulative order intake for the first six months in Nextrom’s other business segments amounted to CHF 88 million (first six months 2000: CHF 115 million).
Total Backlog at end of June 2001 amounted to CHF 282 million, of which CHF 207 million relate to the business segment Fiber Optics. Gross sales for the first 6 months amounted to CHF 234 million, 40% higher than during the same period of 2000. Again, the business segment Fiber Optics has been the main driver behind this increase, with gross sales reaching CHF 128 million (first six months 2000: CHF 71 million). The sales also increased slightly in the business segments Metallic Cable & Pipe and Film and decreased slightly in the business segment Rotating & Twinning compared to the first half year 2000.
The operating profit of CHF 20.2 million compares to a loss of CHF 3.0 million for the same period in 2000. It has been strongly impacted by the high level of sales in the business segment Fiber Optics as well as by a general improvement in profitability thanks to improved project cost control. The business segment Fiber Optics contributed alone CHF 21.2 million to the operating profit which is already more than the CHF 15.2 million profit contribution for the full year 2000. The first 6 months of 2001 resulted in a net profit of CHF 11.4 million compared to net losses of CHF 11.9 million and CHF 13.4 million for the same periods 2000 respectively 1999. Thanks to CHF 28 million of cash generated from operations, the net debt of Nextrom has further decreased from CHF 80 million at the end of December 2000 to CHF 59 million. The good cash flow as well as the positive result improved Nextrom’s gearing and equity ratios.
Management expects the sales volume and profitability of the business segment Fiber Optics during the second half of 2001 to be at a similar level to that of the first half. Due to the recent low order intake, the business segment Film is not expected to reach a break even operating result during the next 6 months. Also, some additional restructuring charges will be incurred in the business segment Rotating & Twinning in the second half of 2001. Overall, excluding the potential impacts of divestments, management estimates Nextrom to be clearly profitable for the second half of 2001.
ENDS