Carlo Gavazzi Group reports CHF16.8 million profit
The Carl Gavazzi Holding AG, which has its headquarters in Steinhausen's Sumpfstrasse, has reported profits of CHF 16.8 million, despite the challenging economic situation.
The Carlo Gavazzi Group designs, manufactures and markets electronic equipment. Last year the Group made record profits but this year they are some 25% down. This is due in no small way to the recession in some of the countries to where it exports some of its products such as Spain, and the significant fall in demand for products related to renewable energy. Both these aspects have led to a reduction in turnover of 17.8%.
Fortunately the Group has been able to increase its turnover in North America and Asia by 21% - 25% and it has continued its expansion policy in China, Mexico and Taiwan, with India to become a new point of focus.
In all, the Group's turnover amounted to CHF 142.8 million, down by 21.5% when compared with the previous year. It was clear that the strength of the Swiss franc against the euro had had a negative effect to the extent of 9.4% of turnover. EBIT decreased by 33.3% to CHF 21.2 million with orders reducing by 24.8% to a value of CHF139.6 million.
The fall in demand for solar energy related products was due to considerable reductions in subsidies provided by the German and Italian states. However, the company was able to increase its sales of conveyor-belt monitoring equipment. The company declined to comment on its outlook as the unpredictable climate meant that any forecasts would be unreliable.