Swiss machinery manufacturer Netstal (Nevels; www.netstal.com) had a difficult year in 2005, according to CEO Bernhard Merki. While the company´s core business with high-speed injection moulding machines developed well, deliveries in the optical disc segment fell by one-quarter.

Overall sales amounted to CHF 314.8m (EUR 202.6m), down by more than 11% against 2004. Incoming orders dropped to CHF 317.1m (EUR 357.8m). The operating result (EBIT) was flat at CHF 34.2m. Despite the decrease in sales, net profit was slightly higher at CHF 25.1m (EUR 24.4m).

The machinery manufacturer attributes the decline in sales in particular to the continuing weakness of the market for optical disc production systems. Market volume has fallen by half within a year due to overcapacities at producers. Apparently, however, Netstal has been able to hold its own better than many other manufacturers. Despite the 25% decline in deliveries, the company actually increased its market share, Merki claimed.

Exports last year accounted for 92% of the company´s sales, with two-thirds of this going to customers in Europe. The Asian market declined slightly, while sales in North and South America moved up again for the first time for three years.