Topic: [SGRN] Schulthess
Challenges in 2010
2010 is set to be a challenging year for the Schulthess Group.
During the first months of 2010, Washing Technology has been on track, whereas Heating and Cooling Technology have shown lower order intake, sales and profitability so far, when compared to the previous year's level. Heating and Cooling Technology is therefore expected to close the first half of 2010 below the comparative results for the first half year 2009.As previously announced Werner Karlen is to take over as CEO of the Schulthess Group and will be Head of the Heating and Cooling Technology division as of 1 April 2010. From mid-2010, Christian Walker will lead the Washing Technology division. The Board of Directors and Group Management have set themselves the goal of laying the base in the current year for an improvement in the Group’s results form 2011 onwards.
The Cooling Technology business is undergoing extensive restructuring. Its structures and production capacities are to be adjusted to take into account the decline in sales. Over the course of the year, the three sites in Germany (Lauf, Röthenbach and Kasendorf) will be consolidated in the newly erected plant in Kasendorf, and as many employees as possible will be encouraged to relocate. All options that could improve the situation in the Cooling Technology business are also being investigated.
Heating Technology products will increasingly be integrated into household technology systems, which will provide major benefits for customers. We will also continue to actively promote the development of innovative products in the area of renewable energies. To support this growth, high priority will be given to the development of new market organisations in European countries.
In order to drive forward development in Washing Technology, marketing activities will be stepped up with the launch of new products. Newly developed commercial machines are also expected to boost growth.
Based on an assumption that the economic environment does not worsen again the 2010 results are expected to be at previous year’s level. The goal is to increase both revenue and profitability from 2011 onwards.
“We will do everything to increase Schulthess Group’s profitability again and to lead the company back on the growth path,” said Rudolf Kägi, Chairman of the Board of Directors of the Schulthess Group.