Bucher Industries continued to perform well during the first half of 2007 on the back of favourable economic conditions. Sales were up 18 % to CHF 1 224 million and order intake was up 19 % to CHF 1 168 million compared with the same period last year. Supported by high capacity utilisation levels, Bucher Industries improved its operating result by 66 % to CHF 94 million. The Group's net result increased by 78 % to CHF 68 million.

The markets in which Bucher Industries operates continued to thrive. Demand for specialised agricultural machinery picked up again after a somewhat slow first quarter. This meant that all the divisions were able to report a solid performance for the first half of the year. While energy prices only increased slightly, steel prices went on rising. Due to the high capacity utilisation throughout the supply chain, the situation in the procurement market tightened. The positive impact of the strong euro more than compensated for the weakness of the US dollar.

All the divisions enjoyed good capacity utilisation, in particular taking Bucher Hydraulics and Emhart Glass to their capacity limits. The high capacity utilisation levels had a positive impact, together with the efficiency improvements implemented in 2006. During the first six months of 2007, Bucher Industries posted 17.7 % growth in sales to CHF 1 223.6 million, up 14.3 % adjusted for currency effects. Acquisitions contributed CHF 12.6 million to sales. In the same period a year ago, businesses sold had generated sales of CHF 15.2 million. Order intake increased by 18.8 % over the first half of 2006 to CHF 1 168.4 million, rising 15.8 % excluding the impact of currency, acquisitions and disposals. The Group's operating result improved by 66.4 % to CHF 93.5 million. After a financial result of CHF 5.8 million and tax expense of CHF 31.4 million, the net result was up 78.2 % to CHF 67.9 million.

Since the end of 2006 receivables and inventories increased in proportion to the marked growth in sales, while customer advances declined seasonally. As a result, operating free cash flow was CHF - 110 million, compared with CHF - 61 million in the same period last year, and net operating assets rose by CHF 215.6 million to CHF 753.9 million. Net liquidity improved by CHF 26.1 million to CHF 19.7 million. Equity grew by CHF 136.5 million to CHF 788.2 million, representing an equity ratio of 41.0 %. Intangible assets increased by CHF 11.3 million to CHF 85.0 million due to acquisitions. The high financial result reflected gains realised on securities. The CHF 100 million 4.25 % bond maturing on 14 September 2007 is expected to be repaid with internally generated funds.

Focused on specialised agricultural machinery, Kuhn Group saw growth driven in particular by the brisk demand in Central and Eastern Europe. Demand in Western Europe and North America remained stable at a high level. In Brazil, farmers stepped up their capital spending again. The positive sentiment was fuelled by favourable climatic conditions, yielding a good harvest in spring 2007, coupled with rising prices for agricultural products. In the first half of 2007, Kuhn Group generated CHF 497.4 million in sales, rising 10.4 % or currency-­adjusted 7.5 %. At CHF 384.8 million, order intake was 15.1 % or currency-­adjusted 12.4 % up on the first six months of 2006. The division's operating result jumped by 85.0 % to CHF 45.5 million. The sharp upturn is due to the positive effect of operational improvements and the fact that last year's figure was weighed down by provisions for the closure of a French plant.

Overall demand for municipal vehicles remained solid during the first half of 2007. Despite the disposals of the Niederweningen component manufacturing operations in Switzerland and the multi­purpose utility vehicle business in Italy, Bucher Municipal's sales and order intake were ahead of the same period last year. In the first six months of 2007, the division grew sales by 2.4 % or currency-­adjusted - 1.1 % to CHF 260.8 million, an increase of 5.1 % adjusted for currency, acquisitions and disposals. Order intake rose by 5.7 % over the first half of 2006 to CHF 289.0 million, up 2.2 % excluding currency effects and even 10.7 % excluding acquisitions and disposals. Bucher Municipal's operating result remained almost constant at CHF 14.4 million.

The division took advantage of the recovery in capital spending by French wine growers and expanded sales of wine making equipment in major export countries. This solid performance made up for the fall in demand from Italy. Sales of fruit juice processing equipment benefited from the worldwide upturn in demand. The division's success was also fuelled by product innovations, such as the leading-­edge system successfully launched for pressing white wine grapes in an oxygen-­free environment and the small new HPX 3007 fruit press. In the first half of 2007, Bucher Process increased sales by 11.2 % to CHF 63.3 million, up 8.4 % excluding currency effects. Order intake reached CHF 86.6 million, topping the year-­ago figure by 11.9 % or currency-­adjusted 9.0 %. The operating result matched last year's level of CHF 2.0 million.

Demand for hydraulic systems remained at a high level worldwide. Through targeted initiatives, Bucher Hydraulics capitalised on the economic tailwind and achieved high growth rates in all application areas during the first half of the year. Despite the tight situation in the supply chain, the division managed to deliver on time except in a few isolated instances. This won it market share in important application areas. During the first six months of 2007, Bucher Hydraulics generated CHF 192.0 million in sales, an improvement of 26.6 % or currency-­adjusted 23.8 %. At CHF 200.7 million, order intake was 29.7 % or currency-­adjusted 26.8 % up on the first half of 2006. Bucher Hydraulics increased its operating result by 71.6 % to CHF 27.8 million.

The reporting period reflected the excellent market environment in the glass container industry. Demand for glass forming and inspection machines grew primarily in the upper and middle price segments. Capacity utilisation at all Emhart Glass manufacturing facilities reached the capacity limit. In the first half of the year, the division switched to demand­driven assembly of glass forming machines. This change, which is both reducing assembly hours and significantly expanding the assembly capacities, will already have an impact in the second half of the year. During the first six months of 2007, Emhart Glass increased sales by 63.5 % to CHF 213.1 million, up 56.9 % excluding currency effects and 56.4 % excluding acquisitions. Order intake rose by 44.8 % over the first half of 2006 to CHF 207.2 million, up 31.2 % adjusted for currency effects and acquisitions. Emhart Glass increased its operating result by 121.5 % to CHF 14.4 million.

We expect the good trend to continue through the second half of the year. For the full year, Kuhn Group anticipates growth in sales and a substantially better operating result. Due to last year's disposals, Bucher Municipal expects sales at approximately the same level as last year, with a slightly improved operating result. Bucher Process anticipates increased sales and a slightly better operating result. Both Bucher Hydraulics and Emhart Glass believe that their sales and operating results will be significantly higher. Overall, Bucher Industries therefore expects continued growth in sales and substantially better operating and net results for the year.



Niederweningen, 8 August 2007

Kurt E. Siegenthaler
Chairman of the board

Philip Mosimann
Chief executive officer