2004 orders, sales and profits are on the rise

2004 orders, sales and profits are on the rise

In the first nine months of the year, the Tornos Group which operates throughout the world in the turning machine market, has exceeded its budget figures and the figures for the corresponding period of last year. New orders at the nine-month stage amounted to CHF 177.9 million (2003: CHF 122.6 million) representing an increase of 45 % over the preceding year. Despite the time lag between receipt of order and invoicing, sales have also grown gratifyingly and amounted to CHF 149.0 million as at 30 September 2004. (+16.1% compared to the preceding year). This growth is attributable on the one hand to the important American market, and on the other, to all regions with a strong involvement in connectors and electronics. After a two-year period of recession, the connectors and electronic industry is enjoying increased demand. Conditions in the medical industry can be seen as steady, as by the way were the corresponding new orders received by Tornos. In contrast, the Tornos Group experienced a decline in demand from the European automotive industry in the months of September and October. As at 30 September 2004, the Tornos Group was able to generate a positive net result. 

Orders in hand as at 30 September 2004 amounted to CHF 62.7 million which means that annual sales can be expected to come in at around CHF 200.0 million in comparison to CHF 174.7 million for the preceding year. Taking these circumstances into account, the Tornos Group will reach a positive net result for 2004. 

Moderate prospects for 2005 

In the last two months, Tornos's key markets exhibited muted demand and the general expectation is that growth will remain hesitant. It remains difficult to produce forecasts of the business situation beyond the first quarter of 2005 in view of the uncertain economic climate. Despite the uncertain economic situation, however, it may be assumed that sales in 2005 will be in line with those for the current year. The Tornos Group will be launching numerous new products in 2005 and these are also expected to have a positive effect on incoming orders mainly in the final quarter of the coming year. 

Moutier, 9 November 2004