| Nextrom Holding SA, Switzerland, has recently announced its consolidated results for the first 6 months of 2003 and confirmed that the continuously depressed telecommunication and fibre optics market has impacted the company�s results negatively. In the core business fibre optics, new orders amounting to CHF 6.2 million have been received (first 6 months 2002: CHF 15 million). The order backlog in the core business amounted to CHF 6.9 million at end of June 2003 (end of June 2002: CHF 56 million). Gross sales amounted to CHF 10.3 million, of which CHF 9.6 million from the core business fibre optics (first 6 month 2002: CHF 81.8 million).
The operating result also suffered from the depressed market situation. In the core business fibre optics, the operating result before exceptional items decreased from CHF 0.7 million loss for the first 6 month 2002 to CHF 9.1 million loss during the same period in 2003. This decrease is mainly due to the very low sales volume, fortunately partially compensated by the positive effects of the important restructuring actions implemented in Autumn 2002. The additional restructuring actions launched in Spring 2003 have not yet been able to impact positively the first 6 months results. The discontinued operations generated an operating profit of CHF 1.5 million, a clear improvement over the CHF 9.2 million operating loss including exceptional items posted by these segments during the same period last year. This positive impact is mainly the result of a smooth liquidation of these segments. Unallocated holding costs also decreased from CHF 2 million to CHF 1.1 million in 2003, again thanks to the restructuring actions implemented at the end of last year. Exceptional items amounting to CHF 2.1 million mainly include charges related to the new restructuring plan launched in Spring 2003 (CHF 3.0 million), compensated by the release of provisions concerning discontinued operations (CHF 0.7 million) and gain on sales of assets of CHF 0.2 million.
The telecommunication and fibre optics market, although showing some positive signs, has not yet recovered. As a result, Nextrom�s order intake has been further delayed and management now estimates that sales will not exceed CHF 20 million for the whole year 2003. Restructuring related to the group�s rented premises in Finland and the USA is anticipated to result in additional restructuring charges. The Group�s operating loss, including all restructuring charges, is expected to reach CHF 30 million at year-end.
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