With its companies combined in the EMS-CHEMIE HOLDING AG and with global activities in the business areas Performance Polymers and Fine Chemicals / Engineering, the EMS Group achieved net sales of CHF 254 million (422), an operative cash flow of CHF 83 million (55) and a net operating income margin (EBIT margin) of 10% for the first three months of 2009.
Consolidated net sales were CHF 254 million (422) which is 39.8% lower than for the same period of the previous year. In local currencies net sales were 37.7% lower than for the previous year. Following the noticeable decline in the economy in 2008, demand for consumer and investment goods dropped again sharply in the first quarter of 2009 and reached historically low values. Reductions in inventory stocks perceived at all preceding levels of the supply chain, reduced demand even further.
In the first quarter of 2009 the automotive industry suffered another particularly strong decline. Inventory stocks were reduced exceedingly and production was restricted so that the number of vehicles produced in the main regions USA, Europe and Japan amounted to only 55% of that of the previous year. A similar decline could also be observed in other industrial branches (electronics, household appliances, optics). As a result, a strong reduction in volumes also occurred for EMS, although all planned new business was realised successfully.
EMS had prepared itself quickly and at an early stage for an economic slowdown. Comprehensive cost-reduction programmes were implemented from the beginning of 2008. A worldwide recruitment freeze has been in force since April 2008. Organisation and processes were continually adapted according to the lower production quantities. At the start of 2009 various production sites throughout the world introduced short working hours. Inventory stocks were reduced and management of accounts receivable tightened. In this way, despite considerably lower net sales figures, it was possible to achieve a higher operative cash flow of CHF 83 million (55) and a net operating income margin (EBIT margin) of 10% for the first quarter of 2009.
