Swiss machinery manufacturer Netstal (Näfels; www.netstal.com) blamed lower investment in the injection moulding machinery business, due to the effect of increased energy and raw materials costs on its customers, for a further fall in sales to CHF 297m (EUR 183m) in 2006 from CHF 315m the previous year. The company´s optical disc business once again suffered from a market-based fall in sales, but this was largely compensated by the gains in standard machines and PET production systems.

The company said that despite increasing competition it was "able to hold its own in a stagnating market environment." Netstal exported 89% of its product in the year, with 68% going to European customers. Sales in the Near and Middle East almost doubled year-on-year while orders in Asia and North and South America remained almost unchanged.

Netstal says the outlook for 2007, its 150th anniversary year, is more encouraging and "the favourable and widely effective global economic climate gives rise to expectations for a positive development of our customers´ investing behaviour." The company cautioned that the industry depends significantly on future energy and raw materials costs but said that it remained "cautiously optimistic" for the year.