Record Operating Performance At Ciba

Ciba of Switzerland has revealed its best operating performance to date. The company announced operating profits for 1994 of 2.7 billion Swiss francs ($2.3 billion), up 15% in Swiss franc terms or, expressed in local currencies, the increase was 40%. Net profits were 1.9 billion francs, up 8% in Swiss francs terms or 38% when currency-adjusted. Earnings per share were ahead 7% to 68.10 francs. Alex Krauer, chairman of Ciba, commented at the company's annual press conference in London last week that the outstanding result was evidence of the company's competitiveness and that of its products in various markets. It also proves the effectiveness of resolute cost management and measures to improve productivity, he said.

The company's biggest challenge was the substantial revaluation of the Swiss franc and the negative impact of turbulent financial markets. For these reasons, sales in 1994, when expressed in terms of Swiss francs, declined 3% to 22 billion francs. When currency-adjusted, sales rose 4%.

Total expenses were reduced in 1994 by 4% to 9.2 billion francs as a result of productivity measures introduced over the past few years. General and administration costs were down 9% to 3.3 billion francs and marketing and distribution costs were down 1% to 3.8 billion francs.