Georg Fischer AG
GF AgieCharmilles responds to changed economic conditions
Georg Fischer AG / Miscellaneous Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. ---------------------------------------------------------------------- Schaffhausen, 13 January 2009, 7:00 a.m., Ad hoc GF AgieCharmilles responds to changed economic conditions Focusing production sites. Rightsizing. Job cuts Faced with adverse market conditions, GF AgieCharmilles has to take all the measures required to maintain and increase its profitability. Consequently, the group plans to rightsize its entire organization; this will involve the loss of 340 jobs worldwide, half of them in Switzerland. A redundancy plan is being prepared for the affected employees. The costs of the entire programme to boost efficiency and profitability are covered by the general provisions already made by the Corporation (Media Release of 24 November 2008). GF AgieCharmilles is also implementing its programme of streamlining its organisation, focusing its production sites in Switzerland and regrouping all sales activities under one head. Since last October GF AgieCharmilles has been facing a sharp slump in demand owing to the international financial crisis and the economic downturn. The Corporate Group is expecting order intake to remain weak for some time to come. As a result, the programmes to boost profitability and efficiency announced in November are to be implemented rapidly and resolutely. The measures envisaged by GF AgieCharmilles are expected to result in the loss of 340 jobs in all, or about 10% of the current headcount. About half of these cutbacks will affect locations in Switzerland, the other half will be at locations abroad. The planned reduction of staff in Switzerland would involve about 145 dismissals. Early retirement plans are also being studied. Two thirds of the envisaged savings are to be made in Sales and Marketing, and close to one third in the plants. The headcount reduction at the Swiss locations Losone, Meyrin, Nidau, Schaffhausen and Luterbach is being carried out in close cooperation with employee representatives. Independently of this planned reduction of jobs, GF AgieCharmilles has announced or initiated temporary short-time work at the plants in order to adjust production to the current situation. Outside Switzerland, the measures will affect mainly Sales and Marketing. The worldwide reorganisation initiated in summer 2008 came into effect as planned on 1 January 2009. The entire organisational structure of GF AgieCharmilles has been systematically simplified, and a site specialisation concept has been implemented that establishes distinct business units for the manufacture of EDM machines in Switzerland. The Meyrin (Geneva) location is responsible for the development and manufacture of wire-cut EDM machines, while Losone will focus on die-sinking EDM as well as micromachines and special products. The Electronics department will in future also be located in Losone. The manufacture and assembly of high-speed milling machines will take place primarily in Nidau (Biel/Bienne), with an affiliated assembly unit in Schaffhausen. GF AgieCharmilles is very well positioned in its key markets and is confident that the systematic measures it has taken will enable it to maintain its market leadership even in this difficult economic environment. __________________________________________________________________________ Corporate Profile Georg Fischer - 'Adding Quality to People's Lives' Georg Fischer is focused on its three core businesses GF Automotive, GF Piping Systems and GF AgieCharmilles. Founded in 1802, the company is headquartered in Schaffhausen, Switzerland, and has over 140 locations worldwide including 50 production facilities. With some 13,000 employees, it generated annual sales of 4.5 billion Swiss francs in 2007. The Corporation makes a direct contribution to the quality of life: Mobility, comfort and precision are key market requirements that we satisfy with our products and services. You'll find further information under www.georgfischer.com. You can register for our subscription service for journalists at www.georgfischer.com/subscriptionservice. You will then automatically receive our latest Media Releases or the regular Top Stories from Georg Fischer by e-mail. Georg Fischer AG, 8201 Schaffhausen/Switzerland Phone +41 (0) 52 631 26 97, Fax +41 (0) 52 631 28 63 __________________________________________________________________________ Daniel Bösiger Head Corporate Controlling / Investor Relations Phone +41 (0) 52 631 21 12, Fax +41 (0) 52 631 28 16 daniel.boesiger@georgfischer.com 13.01.2009 Financial News transmitted by DGAP ---------------------------------------------------------------------- Language: English Issuer: Georg Fischer AG Amsler-Laffon-Straße 9 CH-8201 Schaffhausen Schweiz Phone: +41 - 52 631 2112 Fax: +41 - 52 631 2816 E-mail: daniel.boesiger@georgfischer.com Internet: www.georgfischer.com ISIN: CH0001752309 WKN: 851082 Indices: SPI Listed: Foreign Exchange(s) SWX End of News DGAP News-Service ---------------------------------------------------------------------------
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