The Gallus Group, a manufacturer of narrow web presses and other equipment based in St. Gallen, Switzerland, reports a drop of 8 percent in sales for 2009. Citing a weakness in demand following the economic downturn, the company says that last year’s sales were CHF 214 million ($202 million) compared with CHF 233 million ($220 million) in 2008.
“The effects of the recession beginning in 2008 became apparent in the first half of 2009 with major uncertainty regarding the further development of the world economy and difficulties for many companies in obtaining financing for capital goods. This resulted in a global reduction in demand and restraint in the purchase of label printing machines,” says Peter J. Hauser, chairman of Gallus’ board of directors. “Early adjustments in capacity on one hand, and the continuation of innovative endeavors on the other, strengthened the position of the Gallus Group.” Last year the company introduced the ECS 340 press, featuring a granite base and aimed at the commodity labels market.
Favorable results came from Gallus Stanz- und Druckmaschinen GmbH, which is involved primarily with refined folding carton products. Hauser says the company profited from several major projects acquired in previous years which were successfully completed in 2009. “These had a stabilizing effect on the overall result of the Gallus Group,” he adds.
Gallus employs about 565 people around the world, of whom 260 are based in Switzerland. Heidelberger Druckmaschinen is a minority partner of Gallus Group.