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Edscha struggling to reach its targets

Remscheid. Edscha is growing slower than planned. "We expect sales of 960 to 970 million euros in 2003-2004. A few months ago our target was 980 million euros," said Chief Executive Officer Horst Kuschetzki.

During the 2002-2003 business year, which ended June 30, the company's sales totaled 948 million euros. In the six months through Dec. 31, 2003, the Remscheid-based automotive supplier saw its revenue decline to a provisional 448 million euros from 450 million euros a year earlier.

"We are currently not making any progress," Kutschetzki told Automobilwoche. He cited moves by manufacturers to handle certain engineering services in-house and the weak U.S. dollar as factors. As a result, first-half sales at Edscha's engineering subsidiary IVW Automotive fell to 41 million euros from 60 million euros a year earlier. The company expects an improvement, however, as IVW will assume responsibility for the series-production of the Mercedes-Benz CLS.

Within the hinge systems sector sales fell to 263 million euros in the first half of fiscal 2004 from 269 million euros. Sales of trucks sliding systems remained unchanged at 14 million euros. The demand for control systems was significantly higher: sales rose to 34 million euros from 25 million to 34 million euros.

Kuschetzki is most satisfied with the developments within the convertible roof systems sector. Thanks to contracts for the open versions of the BMW 6 series and the Chrysler PT Cruiser, sales within this segment increased to 96 million euros from 14 million euros in the first fiscal half.

In April Edscha will have reason to celebrate: since 1986 the supplier sold one million roofs for convertibles. Of that total, 150,000 were sold during the 2002-2003 business year.

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