Geneva,10th May, 2001
Consolidated Group revenues for the first quarter of 2001 amounted to CHF 559.5 mio, CHF 34.1 mio (or - 5.7%) down from CHF 593.6 mio in the prior year. On an organic basis, consolidated Group revenues decreased by - 2.6%.
Excluding SGS Global Trade Solutions whose organic revenues declined sharply by 37.2% or CHF 42.6 mio due to the expiry of contracts with the Governments of the Philippines and Ivory Coast, revenues increased organically by 5.7%.
Revenues in Core Businesses excluding SGS Global Trade Solutions have grown organically by CHF 27.9 mio or +7.1% compared to the prior year. SGS Redwood Services and SGS Consumer Products have produced strong organic revenue growths each greater than 10%. SGS Agriculture Services revenues are comparable to the prior year and both SGS Mineral Services and SGS Quality Services reported moderate organic growth. The SGS Industrial Services sector has reported a moderate revenue increase mainly due to the growth in the vehicle inspection business.
Revenues in other services have fallen by -5.9% to CHF 80.1 mio. The majority of the decrease has arisen in the non destructive testing and logistics businesses.
Negotiations are continuing with the new government of the Philippines over the outstanding receivables on the contract which expired at the end of March 2000. The total outstanding amount on the contract remains at CHF 206.2 mio.
SGSonSITE launched new services; the e-enablement of SGS traditional services and SGS eValuate - a portfolio containing information verified by SGS.
SGS continues to remain positive for 2001. Whilst the first half will be negatively influenced compared to the prior year due to the expiry of the Philippines contract which had significant trading during the first half of 2000, it still expects to generate growth in both revenue and earnings for the full year.
The SGS Group is the clear leader and innovator in verification, testing and certification services.