Revenue growth of +1.1% in constant currencies Earnings outlook reduced due to deteriorating economic conditions and weaker GTS performance

Consolidated Group revenues for the first nine months amounted to CHF 1751.6m, +1.1% up on the prior year in constant currencies.

Excluding SGS Global Trade Solutions (GTS), revenues increased by +6.2% in constant currencies. SGS Redwood Services, SGS Consumer Products Services and SGS International Certification Services have all produced strong revenue growth - up +10.7% in constant currencies for the three businesses combined.

Outlook

With the global economic slowdown now evident and reduced profit expectations in GTS, net earnings for the full year are expected to be below those of 2000.

Despite these weaker economic conditions, the Group still expects to generate double-digit growth in Trading Profits for all sectors other than GTS, representing 88% of total Group revenues for the 9 month period.

Negotiations are continuing with the 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 206m.

Current year group profits are expected to be adversely impacted by significantly lower earnings from GTS. Last year Group profits included, as an exceptional item, a CHF 16.8m recovery of previously provided GTS receivables.

Based on the above, full year 2001 net earnings are expected to be in the range CHF 80m - CHF 100m.

Shareholders

Other than Worms & Cie, Rentenanstalt/Swiss Life and A. von Finck, no other shareholder holds a position of more than 5% of the capital of the company.


The SGS Group is the clear global leader and innovator in verification, testing and certification services.

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