Schweizerhall announces 2004 results

Schweizerhall has announced its financial results for 2004. The most significant event of the year was its 80% acquisition of the generics specialist, Cimex Pharma, and the subsequent tender offer for the remaining 20%, marking the successful implementation of a corporate strategy laid down in previous years.

Overall, Schweizerhall was pleased with its results, reporting total profits after tax of CHF 10.3m, compared to CHF 16.4m the previous year. Both business units, chemicals and financial investments contributed to this positive result.

Group shareholders' equity stood at CHF 267.9m at year-end 2004. Taking into account the dividend distribution in May 2004, this corresponds to a year-on-year increase of CHF 8.8m and an increase in shareholders' equity per share from CHF 2 278 to CHF 2 374. In 2004, Schweizerhall Holding's market capitalization improved by 6.3%, ending the year at about CHF 216.9m.

Schweizerhall Chemie posted a sales growth in the last quarter of CHF 4m (+8% year-on-year) thereby increasing total 2004 sales to CHF 216.4m, slightly above the previous year's results of CHF 215.8m.

From an operational perspective, the productivity enhancement programs launched at the beginning of 2003 demonstrated further substantial results which also positively contributed to the bottom-line in 2004. Compared to the previous year, operating costs were reduced by CHF 2.5m (5.8%). The operating profit margin of 5.6% reached the previous year's level. The business unit improved its operating result by generating an operating profit (EBIT) of CHF 4.3m, surpassing the previous year's result of CHF 4m.

The expansion of the multi-purpose facility with an integrated retention basin, tank storage and high rack warehouse in Basle for a total amount of CHF 13m - the largest investment project of Schweizerhall Chemie in recent times - has been operational since the beginning of 2005, and the company expects slightly higher sales and a better operating result in 2005.