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HUBER+SUHNER AG

Huber+Suhner: Increased profitability despite lower sales

Herisau /Pfäffikon (ots)

For the HUBER+SUHNER Group, a leading
global supplier of components and systems for electrical and optical
connectivity, the first six months of 2005 were characterized by
solid execution in a business  environment which was less buoyant
than the corresponding period the year before.
The operating result (EBIT) improved by 7% to 24.3 mCHF (22.7) and
the Net Income of 24.3 mCHF (19.9) reflects an increase of 22%,
bringing Return On sales (ROS) to an all time high of 8.8%. This is
primarily a result of an increase of Gross Profit Margin to 38.5%
(36.9%) and to a limited extent, a favourable currency exchange
situation.
As foreseen in the company's comments at the Analyst and Media
conference in March 2005, the "miniboom" of the first half year 2004,
saw no repetition this year and therefore revenue levels are 5.9%
(5.1% with adjustments for portfolio changes) below the level of the
corresponding period last year. The sales trend is positive however,
and the Order Intake is 19.2% higher than the previous half year
(second half year 2004).
In spite of higher Dividends, active cash management and an
improved working capital situation provided a strong Free Cash Flow
of 19 mCHF (17.6). Net liquidity has increased with 19 mCHF to 72
mCHF and bank debt has been further reduced and is of little
significance.
Business highlights:
- Continued business growth in Asia
   - Double digit growth in Fibre Optics
   - Awarded "Supplier of the year" by Flextronics in China
   - Successful start of a new subsidiary in India
   - A number of successful product launches in all technology areas
   - Lean Six Sigma program started,for continued improved
     operational performance
Following a slow-down towards the end of 2004, HUBER+SUHNER has
seen an increase in business activity and orders received during the
first semester of 2005, especially towards the end of the period
reported. Therefore the company expects the rest of 2005 to continue
on a positive note, albeit that the second part of the year is
normally slower than the first. It remains uncertain however, whether
the increased activity level will suffice to reach last year's level
of sales. Therefore HUBER+SUHNER currently forecast Net Sales for the
full year 2005, at a level somewhat below that of 2004. Profitability
will remain high, leaving the company with a predicted EBIT of above
40 mCHF and an EBIT margin well above our target level of 7%.
HUBER+SUHNER GROUP: FINANCIAL HIGHLIGHTS
(CHF millions)         1st half 2005      1st half 2004     Change
Bookings                  287.8              317.6             -9%
 Radio Frequency 
 Technology               151.7              172.7            -12%
 Fiberoptic +Cable 
 Technology               136.1              144.9             -6%
Net sales                 275.3              292.6             -6%
 Radio Frequency 
 Technology               143.4              156.3             -8%
 Fiberoptic +Cable 
 Technology               131.9              136.3             -3%
EBIT (operating profit)    24.3               22.7              7%
Net income                 24.3               19.9             22%
EBITDA                     36.9               36.3              2%
Employees at the end 
of period                2699               2558                6%
Free Cash Flow             19.0               17.6              8%
Unaudited figures in accordance with SWISS GAAP FER.This report will
be the last report issued by HUBER+SUHNER according to SWISS GAAP
FER.The Annual Report for 2005 will be issued according to IFRS
(International Financial Reporting Standards).
Company profile
The HUBER+SUHNER Group is a leading global supplier of components
and systems for electrical and optical connectivity in
communications, industrial applications, and transportation.
HUBER+SUHNER can draw on core competencies in the areas of radio
frequency technology, fiber optics, cables and ploymers. Working in
close collaboration with its customers around the globe, HUBER+SUHNER
strives for excellence in the development and manufacturing of high
quality products. her information on the company can be found at
http://www.hubersuhner.com.

Contact:

Matthias Stahel
Public Relations
Pfäffikon
Tel. +41/(0)44/952'27'73
E-Mail: mstahel@hubersuhner.com