Annual Report - SIG Combibloc

The improvement in operating profit (ebit) expected for 2004 stems primarily from the
turnaround in the business sector packaging systems and steady growth in the field of
customer services.
“Others”: turnaround achieved
Mid-2003, the business units SIG Kautex, SIG Blowtec and SIG Hamba Filltec were
brought together to form the business unit “Others.” At the end of the business year,
SIG Elettric 80 was integrated into this unit as well.
The companies in the business unit “Others” are not part of the core business of SIG.
In recent years, some of them have had a markedly negative impact on the net profit of
the Group. The new organizational structure ensures that management can monitor the
initiatives and that the initiated measures outside the core business are implemented fully.
It is a stated objective of SIG to divest these activities.
SIG Kautex: concentration generates initial positive results
SIG Kautex is the leading supplier of extrusion blow-molding equipment for fuel tanks
and 3-D-molding machines for the automotive industry. Whereas the us market remains
extremely cautious, Europe and Asia are showing the first signs of recovery.
The strong local commitment of SIG Kautex in China, with its own representative office
in Shanghai, has proven successful.
As a result of restructuring, the operating profit (ebit) suffered significantly. Necessary
measures were completed in the course of 2003. Considering the amended cost structure
and the good order backlog at the end of 2003, a positive result may be expected for 2004.
SIG Blowtec: restructuring and product range streamlining completed
The world market for extrusion blow-molding machines deteriorated further in 2003.
This situation led to severe price erosion.
Markets in North America, Europe and Asia suffered from a difficult, overall economic
situation and existing overcapacities. Individual markets such as Mexico and Russia,
however, exhibited positive developments.
SIG Blowtec adapted its capacities to match the changed market conditions. The product
range was streamlined and production made leaner. These corrective actions had a
distinctly negative impact on the results of the business unit.
By the end of 2003, the required restructuring was completed. Despite the continuing
difficult market conditions in 2004, we expect a balanced result for the business year.
SIG Hamba Filltec: extensive adjustments
For SIG Hamba Filltec, 2003 was a year of comprehensive restructuring. The product
range was brought in line with the findings of a detailed market analysis, costs were cut
and the number of employees reduced. These extensive corrective measures are taking
hold and showing first positive results.
Others
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