Annual Report - SIG Combibloc

28
SIG Beverages
Order intake*)
in millions of eur
322
2001
503
2002
455
2003
Net sales*)
in millions of eur
298
2001
Rest of world 11%
(10%)
Asia 13%
(18%)
Rest of
Americas 19%
(24%)
504
2002
486
2003
Net sales 2003 (2002)
by regions
*) Former SIG Simonazzi,
consolidated as from 7/1/2001
EU 35%
(27%)
Rest of
Europe 15%
(14%)
US 7%
(7%)
SIG Beverages: positioning in fierce competition
SIG Beverages is one of the three leading suppliers of complete filling technologies.
In the past business year, the division installed numerous beverages systems worldwide
and brought them on stream successfully. The focus on services and on-time delivery
showed first positive results.
In the year under report, SIG Beverages achieved net sales of eur 486 millions. Operating
profit before goodwill amortization (ebita) stood at eur 3 millions (2002: eur 26 millions).
After amortization of goodwill, an operating profit (ebit) of eur –17 millions resulted
(previous year: eur 7 millions). This decline is largely due to severe competition with
consequent pressures on prices, as well as expenditure for structural adjustments.
Rigorously implemented cost-cutting measures will contribute to the operating profit
for 2004.
The core product range of SIG Beverages consists of stretch blow-molding machines,
fillers and labeling equipment, plus the integration of complete lines for the beverages
industry. For each of these three key technologies within a beverages line, SIG Beverages
is able to provide technologically outstanding products and, as such, is one of the three
leading suppliers.
The first half-year was impacted by the sars epidemic in Asia, a difficult economic
environment and the introduction of the mandatory deposit in Germany. Competition
increased sharply in the year under review, leading to price erosion. Thanks to our low
manufacturing depth, SIG Beverages was able to contain the resultant effects within limits.
The division continues to work on its cost structure by adapting capacities and cutting
the cost of products, for example, through modularization.
SIG Simonazzi: scoring successes despite a difficult market
Worldwide the investment climate is marked by uncertainty. Additionally, South America,
the traditionally significant market for SIG Simonazzi, is in a severe political and economic
crisis. In the year under report, consolidation in the beer industry temporarily reduced
demand for filling systems. However, new technologies such as plasma coating and the trend
towards pet bottles present new oppotunities in the growing beer market.
SIG Simonazzi scored a significant success by equipping a brewery in the Netherlands.
The first bottle was filled on schedule, at the beginning of December. In terms of efficiency,
flexibility and automation level, this line is one of the most modern in the world today.
SIG Corpoplast: position maintained in a cautiously growing market
In 2003, the market growth for pet stretch blow-molding machines weakened. Above all, it was
the sars epidemic that impacted on the markets. Despite fierce competition, SIG Corpoplast
was able to defend its market position. Since its introduction in 2002, no less than 100 units
of the new generation Blomax iii machines have been installed.
As in the previous year, the major business unit in Hamburg developed positively. In Brazil,
however, restructuring measures were necessary and completed in the course of 2003 already.
SIG Alfa: market showing substantial interest
After several years of focusing on the improvement of its services, customer interest in
SIG Alfa labeling machines grew significantly in 2003. SIG Alfa ranks as the number two
manufacturer for labelers for the beverages industry. The new product range was well received
by the market. During the last quarter of 2003, in particular, order intake grew strongly.