Annual Report 2006

Summary
Key figures Production Equipment
Production Equipment
Production Equipment comprises the activities of the Machining Technology and
Assembly Technology divisions. Both divisions develop and build customized
production solutions for companies that specialize in high-volume manufacturing.
The business trend in the Production Equipment segment is shaped by the typical
influences on project-driven capital goods business.
Order intake and sales were up on the previous year and in line with expectations.
Around two-thirds of orders were placed in the first half of the year. While
good progress was made on the road to improving earnings power, the targeted
increase in operating profit (EBIT) was not achieved. The reasons were to be found
in the unexpected cancellations of orders for the Machining Technology division,
which led to extraordinary write-offs totaling CHF 4.4 million in the last quarter,
as well as expenditures for handling the, at times, very high order backlog at the
Assembly Technology division.
Both Machining Technology and Assembly Technology entered 2007 with a
stock of orders significantly below the prior-year level. This is a reflection of the
low order level in the second half of 2006. Nevertheless, both divisions remain
optimistic. Order volume is expected to rise further. Improving operating profit
(EBIT) remains the top priority.
in CHF million 2006 2005 +/-
Orders 228.7 214.9 6.4%
Machining Technology 128.6 121.1 6.2%
Assembly Technology 100.2 93.8 6.8%
Net sales 244.7 218.4 12.0%
Machining Technology 126.1 119.8 5.3%
Assembly Technology 118.6 98.6 20.2%
EBIT 10.4 11.6 -10.7%
Stock of orders 72.7 96.7 -24.8%
Machining Technology 37.7 44.4 -15.2%
Assembly Technology 35.1 52.3 -32.9%
Number of employees 977 961 1.6%
Machining Technology 588 618 -4.9%
Assembly Technology 389 343 13.3%
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