Annual Report - SIG Combibloc
Annual Report - SIG Combibloc
Annual Report - SIG Combibloc
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Employees<br />
2001 9,182<br />
2002<br />
9,402<br />
2003<br />
9,014<br />
Remaining activities<br />
Activities<br />
to be divested<br />
The total number of employees at <strong>SIG</strong> fell in 2003 from 9,402 to 9,014 as a result of<br />
divestments and rationalization measures. Manpower adjustments in the <strong>SIG</strong> Pack and<br />
<strong>SIG</strong> Beverages divisions as well as in the three business units <strong>SIG</strong> Kautex, <strong>SIG</strong> Blowtec<br />
and <strong>SIG</strong> Hamba Filltec were offset partially by the creation of new jobs at <strong>SIG</strong> <strong>Combibloc</strong>.<br />
Thanks to strong demand for beverage cartons of <strong>SIG</strong> <strong>Combibloc</strong>, our core business grew<br />
significantly in 2003. Order intake of the two divisions <strong>SIG</strong> <strong>Combibloc</strong> and <strong>SIG</strong> Beverages<br />
totaled eur 1,506 millions (2002: eur 1,457 millions) and net sales stood at eur 1,544 millions<br />
(2002: eur 1,443 millions). At eur 120 millions, the ebit of the core business fell short of<br />
the previous year’s figure of eur 139 millions. This result stems primarily from major market<br />
penetration investments (newly installed fillers), higher research and development<br />
expenditure, plus the negative development of the US dollar. Since the year 2000,<br />
<strong>SIG</strong> <strong>Combibloc</strong> has developed positively and, in the previous business year already, outperformed<br />
our forecasts. In the past seven years, <strong>SIG</strong> <strong>Combibloc</strong> has doubled its net sales,<br />
whereas the profit was doubled in only three. This positive trend continued in 2003.<br />
The division increased its net sales to eur 1,058 millions (2002: eur 939 millions) and,<br />
with an operating profit (ebit) of eur 137 millions, even surpassed the excellent results<br />
of the previous year (eur 132 millions). High capacity usage at the production plants<br />
and filling machines, as well as further reduction of waste rates at the packaging material<br />
plants all contributed. Generating around one third of all sales, the German domestic<br />
market is the most important one for <strong>SIG</strong> <strong>Combibloc</strong>. Within the European Union, the<br />
markets of Spain and France also developed positively. Continuing growth trends in the<br />
markets of Eastern Europe and the Middle East are also gratifying.<br />
<strong>SIG</strong> Beverages is dedicated entirely to the machine and systems business. As a result,<br />
this division suffered heavily from the effects of a reluctant economic environment. Net sales,<br />
order intake and operating profit (ebit) totaled eur 486 millions, eur 455 millions and<br />
eur –17 millions respectively, falling short of the previous year’s figures of (eur 504 millions,<br />
eur 503 millions and eur 7 millions). However, in the final quarter of 2003, order intake<br />
picked up substantially. Consequently, we can start the new business year in a more favorable<br />
position and with a stronger order backlog than originally anticipated at mid-year. Step<br />
by step, our management is working on improvement projects that will bring us closer to our<br />
target of operational excellence. <strong>SIG</strong> Simonazzi has already achieved one vital intermediate<br />
objective: the unit succeeded in significantly lowering the cost and duration of commissioning<br />
beverage lines at customers’ facilities. We are strengthening cooperation between the key<br />
units <strong>SIG</strong> Simonazzi (filling machines), <strong>SIG</strong> Alfa (labeling machines) and <strong>SIG</strong> Corpoplast<br />
(blow-molding machines). <strong>SIG</strong> Asbofill, our new business unit for linear aseptic filling of pet<br />
and hdpe bottles, is being integrated as an important element into the <strong>SIG</strong> Beverages<br />
division. <strong>SIG</strong> Corpoplast and <strong>SIG</strong> Simonazzi are cooperating closely in several markets: in<br />
the past twelve months, <strong>SIG</strong> Manzini has already completed several projects in collaboration<br />
with <strong>SIG</strong> <strong>Combibloc</strong>.<br />
Despite an uninspiring economic climate, <strong>SIG</strong> Pack achieved satisfactory results. Net<br />
sales and order intake suffered from increasingly strong competition. The higher ebit<br />
of eur 8 millions compared to the previous year (eur 4 millions) stems from the profit of<br />
eur 8 millions realized from the sale of a property. As already indicated in the previous<br />
year, the market continued to shrink in 2003. Although the management had made timely<br />
capacity adjustments, <strong>SIG</strong> Pack could not reach the operating profit of the previous year.<br />
As expected, the seasonal nature of the business helped the division to compensate the<br />
operating loss of the first half. Together with Bosch, Cavanna and Schubert, <strong>SIG</strong> Pack ranks<br />
among the leading providers of machinery for dry goods.<br />
Group report<br />
21