Zurich - Swiss group Conzzeta has announced a "slight increase in revenues and stable results," for the third quarter (Q3) of 2008.
Conzzeta's Foam Materials business unit, FoamPartner, reported sales of CHF 104.7 million ($93.2 million) compared with CHF 105.8 million in 2007, the company said 13 Oct. FoamPartner said the market for foam stagnated "in both Europe and the USA in the second four-month period of 2008." The company also reported strong growth in Asian markets, as well as announcing that the first products for the local market came on stream at its new foam processing plant in China in mid-Sept 2008.
In comparison with the first eight months of 2007, for the Conzzeta group consolidated net revenues grew by 3.1 percent to CHF 985.3 million. The company explained that the weakness of key export currencies (USD, GBP, KRW) brought about by the current economic crisis "continued to exert a negative influence through the second four-month period." After adjustment for currency translation effects net revenue actually showed a 7.7 percent increase compared with the first eight months of 2007.
Operating margin (EBIT) was down from 7.8 percent last year to 7.2 percent whilst group profit, down from CHF 112.5 million down to CHF 56.3 million, was on a par with 2007 once "extraordinary profit of CHF 56.3 million is factored out," said Conzzeta.
Operating profit was reduced by around CHF 10 million in costs from the closure of the company's natural latex foam production facility in Switzerland because of "lack of profitability," Conzzeta said.