SGS Annual Profit Rises 4.1%, Cuts Dividend

ZURICH -- Swiss inspection, testing and certification company SGS SA (SGSN.VX) Thursday reported a 4.1% increase in net profit helped by growth in all regions except Europe, but said it was cutting its dividend.

MAIN FACTS:

- Revenue in 2012 rose 16.3% to CHF5.58 billion from CHF4.87 in 2011.

- Net profit rose 4.1% to CHF556 million from CHF534 million.

- The company has proposed a dividend of CHF58, down from CHF65 million a year earlier.

- During the year, the Group completed eighteen acquisitions that generate an estimated CHF 212 million in revenues and CHF 29 million in Operating Income on an annualised basis.

- During the year, the Group undertook a number of restructuring plans to align its operations to current market conditions, resulting in one-off expenses totalling CHF 47 million (net of tax). These initiatives focused mainly on European operations.

- OUTLOOK: SGS expects to deliver solid top and bottom line growth in 2013, notwithstanding continuing weak trading conditions in Europe.

-Zurich Bureau, Dow Jones Newswires, [phone]; [e-mail]

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