October 24, 2011 | by Schlatter Holding AG
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October 24, 2011, The Schlatter Group is well positioned in its market as specialists in plant engineering for resistance welding systems as well as weaving and finishing equipment for the production of paper machine clothing, wire fabrics and wire mesh. In light of encouraging order intake levels and the current market environment, the Schlatter Group man-agement sees solid opportunities for broadening the market position.
As communicated with the half-year results in August 2011, the export-oriented Schlatter Group has been severely impacted by the continuing weakness of the euro. Following the Swiss National Bank’s decision in September, the situation stabilized at a low level. Since the cost-saving measures already initiated will not feed into the result before 2012, a negative operating result (EBIT) in the range of CHF 9-10 million is expected for the 2011 financial year.
In order to strengthen the Group’s capital base and be able to work with greater financial flexibil-ity toward the goal of leveraging market position despite the challenging currency situation, Schlatter Holding AG is planning to increase authorized capital by some CHF 20 million. HMZ Beteiligungen AG, Heerbrugg (CH)1, which currently holds 45.5 percent of the share capital, will guarantee to underwrite all new shares created under the capital increase. The capital increase is scheduled to be carried out by the end of 2011 with subscription rights for existing shareholders at market conditions. There will be no subscription rights trading.
Details of the capital increase are expected to be announced by the end of November 2011.
Contact
Schlatter Holding AG Werner Schmidli Chief Financial Officer Brandstrasse 24 8952 Schlieren Tel. 044 732 71 70 Fax 044 732 45 02 werner.schmidli@schlattergroup.com
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Conclusion of this article: « Schlatter Holding AG: CHF 20 million capital increase to strengthen equity capital base and expand market position »
Source: Schlatter Holding AG, Press release