ANNUAL REPORT

4
Revenue growth in CHF terms for the
four business units was 17% ahead
of 2005. From a geographical stand-
point, in local currency terms there
was good growth in all subsidiaries
except Italy, where the Rome factory
was closed, and Singapore due to
continued shrinkage of lead frame
manufacturing.
advanced coatIngs
Net sales increased 8% as compared
to 2005. European operations were
restructured with the Dutch and Ger-
man service centers consolidated
into the UK. The production facilities
of Italy were closed and products
transferred to the Swiss site in Marin.
The US plating business returned to
profitability with a slightly reduced
business base after a business model
change. The strong demand in Asia
for precious metal chemicals for the
electronics industry and gains in mar-
ket share for powders contributed to
increases in margin. Late in the year
a long-term supply agreement was
signed with a major customer which
will result in a major capital program
in the Suzhou China factory.
electrotechnIcs
The Electrotechnics activities achieved
a 19% revenue growth and a 80%
improvement in operating results
during 2006. This substantial im-
provement in margin comes from
improved manufacturing efficiency as
a consequence of capital programs in
2005, process innovation and market
share gains. The Chinese plant is now
working and is receiving its first or-
ders from multinational companies in
China.
reFInIng
The Refining Division profited well
from high volumes processed through
the Marin facility, the turnaround of
the USA refinery, and strong demand
in Hong Kong. The USA also managed
to increase market share. Net sales
were 41% ahead of 2005. Designs
were completed for a capital program