Net profit drops by half
Lonza Group AG said that its net profit slumped to CHF91 million compared with last year's CHF221 million and the company took a CHF100 million charge related to the decommissioning of fine chemicals production assets in the US and Europe. The decommissioning is expected to streamline capacity to allow the company to compete more effectively.
Chief Executive Markus Gemuend is to remain until a replacement is found.
The company expected a second half recovery which did not materialize and operating income (exclusive of non-recurring costs) decreased by 27.9% to CHF 302 million from CHF 419 million.