Financial Report
Financial Report
Financial Report
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AFG<br />
Annual <strong>Report</strong><br />
2011<br />
Commentary<br />
on the <strong>Financial</strong><br />
Figures<br />
102<br />
Currency situation hits hard<br />
The consolidated revenue posted by AFG stagnated adjusted<br />
for currency and acquisition effects over the past<br />
year in comparison with 2010. In real terms, however, it<br />
fell by 4.7 % to CHF 1347.4 million (2010: CHF 1413.5<br />
million). Like many other industrial enterprises, AFG was<br />
adversely affected by the unfavourable exchange rate<br />
situation. At the same time, problems of capacity utilisation<br />
had a negative effect on revenue.<br />
Once again, the two home markets, Switzerland and Germany, underpinned<br />
business activity, with the construction market remaining solid in<br />
both countries. However, the withdrawal of investment grants in Germany<br />
and a greater reluctance among investors in all markets due to the<br />
uncertainties on the financial markets had a negative impact on sales.<br />
Review of business portfolio puts a strain on income statement<br />
The company-wide review of the business portfolio's strategic focus carried<br />
out in the summer of 2011 and the problems already mentioned<br />
caused impairments in the amount of CHF 73.0 million, leading to a<br />
Group result of CHF − 70.2 million (2010: CHF 14.2 million). Without<br />
these one-time effects, AFG would have posted a small Group profit of<br />
CHF 4.5 million (2010: CHF 27.2 million).
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