Daetwyler Rubber moves to loss in first half

ERJ staff report (DS)

Altdorf , Switzerland -- Swiss industrial group Dätwyler suffered severe reductions in its income and sales for the six months ended June 2009. The group's rubber and cable divisions fared particularly badly.

Dätwyler's Rubber Division, which operates as Daetwyler Rubber, had to accept significant losses in revenue and result in the first half of 2009. The worldwide automotive industry crisis led to a decline in net revenue of 28.3 percent (exchange rate adjusted -26.3%) to CHF 57.4 million (euro 37.8 million).

A major order from the consumer goods industry that developed according to plan brought a stabilising effect.

In rubber moulded parts for the automotive industry Daetwyler Rubber struggled with the difficult market conditions. With the start of operations at the new production location in Mexico, the company made an important step in boosting its competitiveness. The existing factory in the USA will be closed in the third quarter of 2009. Through this relocation Daetwyler Rubber estimates annual savings of CHF 3 million as of 2010. Special gaskets and seals for building construction and civil engineering could also not escape the economic crisis. In particular segment lining gaskets for tunnel construction suffered considerably due to massive project postponements. For the second half year a sustainable recovery is not anticipated for the Rubber Division. Daetwyler is nevertheless optimistic for the medium term due to numerous new projects in the pipeline.

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Press release from Dätwyler