We make our customers successful. - Oerlikon Barmag

Management’s discussion of results
adapt to this cyclical swing very quickly. In the synthetic fiber
business a good start into the new year can be expected, on account
of the high order backlog. The TEMPUS project for improvement
of business processes across the entire textile business unit will be
Results Transmission Systems
(EUR 000) 2003 % 2002 %
Sales 363 009 100.0% 380 172 100.0%
Operating profit1) 27 518 7.6% 36 391 9.6%
Depreciation and amortization 29 902 8.2% 25 917 6.8%
EBITDA 57 420 15.8% 62 308 16.4%
Capital expenditure 20 138 19 916
Employees (year end) 2 951 3 021
1) including non-recurring income and expense (e.g. restructuring).
For Transmission Systems 2003 was a year of consolidation.
Limited demand in consumer markets for automobiles and in agricultural
machinery led to a reduced business level for Graziano as
supplier, and also to pressure on margins. In the Indian market the
planned sales volume of synchromesh units for tractors was not attained
yet. After several years of high sales growth, Graziano used
the slow down to launch a series of projects: a comprehensive process
reengineering program was started, integration of new businesses
acquired in the previous year was completed, India was
46
continued as planned, with further cost reductions targeted.
In 2004 and 2005 Saurer plans to further strengthen its foothold
in China, with additional capital spending of EUR 20m over both
years.
built up to become an important production site for supply to
international markets and a series of important customer projects
were pushed ahead to secure future earnings.
Outlook
New projects in the pipeline should lead to recovery of volumes
towards the end of 2004. The build-up of India will continue. A
realignment of business processes, which has already started, will
lead to improved efficiency and cost reductions.