Lonza expects market to remain volatile in 2010
Lonza, the Swiss supplier to the pharmaceutical industry, said business would remain unstable as it reported a 62% fall in profit to CHF159m (
Lonza, the Swiss supplier to the pharmaceutical industry, said business would remain unstable as it reported a 62% fall in profit to CHF159m (£93m; €108m) to 31 December 2009 owing to restructuring costs and order cancellations.
The company said the year had been characterised by lower demand across all divisions, particularly for large-scale biopharmaceutical projects and life science ingredients. Sales dropped from CHF2.9bn to CHF2.7bn (£1.6bn; €1.8bn).
Chief executive Stefan Borgas said the company was optimistic about its ability to handle the situation.
Capital expenditure will be reduced from the original estimate of CHF500m for 2010, to less than CHF400m, with a similar target for 2011.
The company said this would strengthen cash flow and provide increased financial flexibility to open up the possibility for expansion of the life sciences business.