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SCHOTT remains confident despite difficult market conditions

Post Time:Mar 09,2009Classify:Company NewsView:413

The current financial and economic crisis also dampens the business expectations of the international technology group SCHOTT. During the first five months of the 2008/2009 financial year, the declines in sales that important customer segments, such as the automotive and semiconductor industries, but also optics, have been experiencing has also resulted in weaker incoming orders at SCHOTT, of course. Nevertheless, the company remains optimistic, due to its solid financial structure and the promising potential that many of its products hold. “SCHOTT has a broad product line and is present in many different regions. These are good prerequisites for mastering the crisis,” emphasized the Chairman of the Board of Management, Professor Udo Ungeheuer, at the Annual Results Press Conference held in Mainz. Group sales are expected to remain at least at the same level as in the 2007/2008 fiscal year (2.23 billion euros), with lower EBIT (2007/2008: 289 million euros), however.

High investment spending and commissioning of new manufacturing facilities
In order to strengthen its position as one of the leading technology groups in the field of specialized glass products and other high-tech materials, SCHOTT will once again be investing large sums towards fixed assets during its current business year. Here, the focus lies on Solar Energy and Pharmaceutical Systems. A new manufacturing facility for special glass tubing that will go into operation in the fall is currently being built at the site in Mainz. In April, new flat glass manufacturing will commence in the Czech Republic. In May, the new solar plant will be officially inaugurated in the United States and manufacturing of solar wafers for photovoltaics in June, within the scope of the joint venture with WACKER Chemie AG in Jena. SCHOTT continues to see good prospects in the use of solar energy for photovoltaic and solar thermal parabolic trough power plants. With the help of the joint venture WACKER SCHOTT Solar GmbH, SCHOTT covers the entire value creation chain from wafers to cells and solar modules based on a secure supply of the raw material silicon. SCHOTT is the global market and technology leader in solar receivers, a key component of solar thermal parabolic trough power plants, and is currently supplying products for power plant projects in Spain, North Africa and the Middle East.

Fiscal year 2007/2008: SCHOTT increases sales and profit
SCHOTT recorded an extremely successful 2007/2008 fiscal year. Group sales rose by 4% to 2.23 billion euros. Without the effects caused by changes in exchange rates, most notably the euro in relationship to the U.S. dollar, Group sales would have been even 50 million euros higher. The increase in sales can be attributed to the dynamic development in the area of solar power. The results of operations (EBIT) for the fiscal year 2007/2008 rose by 22 million euros to 289 million euros. Professor Ungeheuer noted that he was particularly pleased with the strong Group earnings of 182 million euros. Cash flow from business operations also improved by 12% to 254 million euros. The SCHOTT Group’s equity-to-assets ratio also increased quite considerably. On balance sheet date, this figure was 929 million euros, compared to 724 million euros for the previous year. The equity-to-assets ratio climbed from 31% to 36%. With respect to investments in fixed assets, SCHOTT remained at a high level of 289 million euros. The main focus was on expansion of solar capacities. Expansion of these business activities, most notably in the areas of solar power, but also pharmaceutical tubing and pharmaceutical packaging, resulted in an increase of nearly 700 in the number of employees to 17,363 in total.

Source: Schott AGAuthor: shangyi

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