StarragHeckert reports positive growth and increased backlog

The company has reported revenues of CHF 190.0 million for 2006 (CHF 1.00 = £0.42). The increase in volume and consistent implementation of operational improvement measures, introduced at the end of 2004, led to a doubling of earnings before interest and tax (EBIT) from CHF 5.1 million to CHF 10.9 million. Demand was particularly strong in the Asian markets as well as in North America, while sales were slightly down in Germany in comparison with the strong figures registered in the previous year. Aircraft and jet engine construction customers were the main growth drivers for StarragHeckert in 2006, with the company managing to further develop its position in these key sectors. Precision machinery also developed well where the market position could be strengthened especially at the large-scale machining centres. The order backlog at year-end also showed a significant increase (CHF 81.1 million compared with CHF 64.2 million the previous year). The 2006 acquisition of Geneva-based machine tool manufacturer SIP Société Genevoise des Instruments de Physique, was integrated in the last financial year and made a good contribution to growth with orders exceeding expectations. Given the stable political situation and with no particular market corrections, the company says order intake and sales revenue will grow and that operating profit "might reach the identified target of seven to eight percent". StarragHeckert includes production plants in Rorschacherberg, Switzerland (Starrag); Chemnitz, Germany (Heckert); Geneva, Switzerland (SIP) and Aylesbury, UK (TTL), as well as sales and service companies in China (Beijing and Shanghai); USA (Cincinnati, KY, and Laguna Hills, CA); France, the UK and Russia.