The SIG industrial corporation, active in packaging and small arms, showed a clear loss in earnings last year. After restructuring expenses of SFr111 million, SIG had a negative net profit of SFr-43 million.

The SIG industrial corporation, active in packaging and small arms, showed a clear loss in earnings last year. After restructuring expenses of SFr111 million, SIG had a negative net profit of SFr-43 million.

A statement from company headquarters in Neuhausen said the SIG Group experienced weak consumption and investment in the Asian, South American and Eastern European countries.

"Disregarding any restructuring expenses, clear losses in earnings had to be accepted," it said.

New orders reached SFr1.925 billion, an increase of one per cent over 1998, while net sales of SFr1.950 billion were practically the same.

Operating profit before restructuring fell by 30 per cent to SFr107 million. The reasons given for the decline included a significant decline in business in one division, high investment costs to gain access to new markets and structural weaknesses.

In January, SIG announced it was planning to reduce its workforce by about 370 as a result of the decrease in operating profit. At the same time, it said it would dispose of SIG Arms and concentrate its strategic focus on packaging.

Thursday's statement said the restructuring introduced and the new strategic direction taken would create the basis for a "sustained improved profit situation" and ensure future growth.

From staff and wire reports

In compliance with the JTI standards

More: SWI swissinfo.ch certified by the Journalism Trust Initiative