These two strategies form the basis of the targeted improvement in cost structures from 2016 onwards, says the company. In order to pursue these goals, a new business area, Global Supply Chain Management, is being created and will be headed by former CFO Luc Widmer. Says Tornos: "Since joining Tornos in August 2012, he has contributed significantly to ensuring that Tornos Group is solidly financed today. Key financial management figures improved considerably under his oversight. Furthermore, he oversaw the internationalisation of the Group, in terms of its production sites. With his extensive knowledge of procurement processes, Luc Widmer is ideally qualified to take on this vital role in the Tornos Group."
In addition to this, however, following the SNB's action, Tornos promptly introduced an efficiency programme with a targeted raft of measures that are expected to have a greater impact from the second half of the year onwards.
This cost reduction effort was revealed alongside first quarter performance figures that show order intake up but depressed by the exchange rate. New orders amounted to CHF51.3 million (£36.5 million), up 1.9% on the strong figure for the same quarter of the previous year. Net sales totalled CHF41.3 million (£29.4 million) in the first quarter, a fall on the previous year's CHF43.2 million (£30.7 million) but an increase of 2.1% when converted to local currencies.
Regarding the USA, adjustments to the distribution structure implemented in 2014 are said to be starting to take effect, with a new product launched in the fourth quarter supporting this trend and reflected in "a significant increase in customer orders". The company unveiled its CT20 entry-level sliding-head machine in the fourth quarter, as well as the Swiss GT26, a replacement for the Gamma range, in fact.
In referring to its strategy of complementing its high-end machines with lower cost models, the company says: "Worldwide demand from the different market segments confirms the trend towards a balanced product mix of high-end and standard products of the type that Tornos has been offering for several quarters now."
In the release, Tornos Group confirmed its goal for 2015 as that of achieving an improved result, compared to 2014. And last year, following two years of losses, Tornos returned to profit.
