Oystar claims the company has managed a successful turnaround

By Guy Montague-Jones

- Last updated on GMT

Related tags: Net income

Packaging machinery specialist Oystar has announced that it is now able to conduct business without outside financing for the first time since the economic crisis hit.

The machinery sector was particularly badly affected by the recession as access to financing deteriorated and buyers put big projects on hold.

Oystar, which makes packaging machines for dairy products as well as pharmaceuticals and cosmetics, was no exception.

But the company now believes that it has managed a turnaround after “a clear improvement”​ in results in the second half of the year.

Sales performance

For the full year, sales are expected to exceed €420m compared to €402m in 2009 - a 6 per cent increase.

The order book is also looking healthier than it did in 2009. An order volume of €450m is anticipated for 2010 compared to €387m in 2009 and the volume of orders now available for next year adds up to €186m compared to €157m last year.

Commenting on the figures, Oystar CEO Tom Graf said: “This represents a very good basis for 2011 and indicates that we will be able to continue this positive trend.

Graf added that the business in America in particular is developing “very much to our satisfaction.”

Financial impact

The impact of the improvement on the top line and efforts to restructure the company could be felt on the bottom line. Oystar did not reveal its expectations for profits, but said that its operating result in 2010 will more than triple compared to 2009.

This has helped improve the liquidity situation at the company, with available cash reaching the volume of several months’ sales. Oystar said it is once again able to conduct business using its own resources and without outside funding.

In addition, the Germany-based company said it has been able, as of the end of September, to reduce its year-on-year debt burden. This debt reduction work will continue next year.

Oystar is a holding company representing 14 separate manufacturing companies, with a total workforce of 2,200 worldwide.

Related topics: Processing & Packaging

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