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Ascom blames higher costs and acquisitions for mixed results

Ascom graphic - net profit up by 54 per cent. Ascom

The Ascom telecommunications group on Monday reported net profit growth for the first six months of 54 per cent to SFr60 million ($35 million). Turnover increased by 9.4 per cent to SFr1.5 billion.

This content was published on September 4, 2000 - 16:33

However, in a statement from its Berne headquarters on Monday, Ascom said operating profit fell 13.2 per cent to SFr46 million.

It said the drop was down to the "effect of acquisitions and disposals, as well as to increased development and marketing costs".

Ascom predicted an increase in group net income and turnover for the full year 2000 compared to 1999 but said the operational result was uncertain.

It said the proportion of group sales from e-business solutions continued to grow strongly.

It added that it was optimistic about field trials of Powerline Communications, the technology for transmitting telecommunications over the low-voltage power supply grid, saying tests were underway in 12 countries.

Shareholders of Ascom are invited to an extraordinary general meeting on September 15 to discuss the controversial issue of introducing a single-class share structure.

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