Annual Results 2000 of the EMS Group

With its companies combined in EMS-CHEMIE HOLDING AG, the EMS Group reports better than expected results for the year 2000. Net profit improved by 20,6 % to CHF 253 million (210), net sales revenues increased by 6,8 % to CHF 1,160 million (1,087) and EBIT by 7,1 % to CHF 213 million (199). This result exceeds expectations. Following the discontinuation of low-yield products and the introduction of new products into the range in 1999, and in view of the emerging slowdown of the U.S. economy in the 4th quarter of 1999 in particular, EMS expected weaker growth for the year 2000. The improvement nevertheless achieved can be attributed especially to the successful launch of new products - specifically GRIVORY, a high-grade alternative to expensive light metal, and PRIMID, an environment-friendly PMC hardener - as well as to the significantly improved engineering business in Asia. The EBIT margin amounted to 18,4 % of sales, the net profit margin 21,8 % and the return on equity 21,6 %.

For EMS, the year 2001 is characterised by an emphatic slowdown of the economy in the USA, by weaker economic growth in Asia, and by perceptibly growing difficulties in the automobile and cellulose industries. In spite of this situation, EMS will be able to boost sales and maintain operating income at its high level. Net profit will not suffer dilution as a consequence of the consolidation of AXANTIS.