Mayer & Cie expects a succesfull year in its main business

MAYER & CIE EXPECTS A SUCCESSFUL YEAR IN ITS MAIN BUSINESS

1850 circular knitting machines to be shipped in 2002. The affiliated PC-board producer STP had to file insolvency due to the drastic and continuous downturn of orders.

Mayer & Cie, a privately held company in the 3rd generation, reports improved market conditions in its main business of circular knitting machines. Total sales of the group with circular knitting machines, printed circuit boards, specialised machines, measuring tools, automotive and punched parts in 2001 reached 310 mio EUR with 2400 employees worldwide.

After a drop of the worldmarket of circular knitting machines in 2001 by 30%, the production in Albstadt was only affected by 14%. Due to the higher demand since March this year an increase of 10% in sales up to 145 mio EUR is expected, in the group total sales with circular knitting machines will be 170 mio EUR. This year a total of 6,5 mio EUR will be invested to further increase competitiveness and the world market share.

With specialised machines (ultrasonic welding and wire braiding), measuring tools, automotive and punched parts a turnover of 85 mio EUR could be achieved, with a further increase in this year.

In this business area 7,5 mio EUR will be invested, same as 2001. The structures of the financial statements of the group companies can withstand the future strong rating requirements of Basel II.

The only problem child in the group is the printed circuit board manufacturer STP, which is already written off in the Mayer & Cie financial statement. STP, a former production site of IBM Germany in Sindelfingen, was taken over in December 1995. After 4 difficult years of restructuring and new orientation in 2000 a record turnover was generated with a high profit. This was achieved through concentration on hightech multilayers(up to 32), high capital expenditures in new technologies and close relationship with the two main volume customers. Since the dramatic downturn of orders since February 2001, cost, capacity, and weekly working hours had to be adjusted. The employees have been reduced by 30% to 600 in Sindelfingen and 200 in Albstadt, the accumulated financial reserves of the year 2000 have been spent. Due to the volatility and intensity of investments in this market, various promissing negotiations withstratetic investors have been conducted, but due to the ongoing crisis in the IT-market, couldn`t be finalized successfully. Therefore and due to further negative expectations the company is facing illiquidity and had to file insilvency.
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Contact:
Mayer & Cie. Rundstrickmaschinen
Tailfingen, Emil-Mayer-Strasse 10
D-72461 Albstadt / Germany
Tel.: +49-(0)7432-700-0
Fax: +49-(0)7432-700-315
Email: verkauf@mayercie.de