Motor-Columbus Group Resports First Half Results

The Motor-Columbus Group, in particular Atel and its group companies[1] as the principal subsidiary operations, posted solid results for the first half of 2006 with strong growth in both sales and earnings. Consolidated sales increased 46% to reach CHF 5.6 billion. Operating income (EBIT) rose to CHF 451 million (up 47%) and consolidated net income climbed to CHF 345 million (up 62%). The vigorous growth was primarily fueled by higher energy sales (up 31%) and the continued rise in energy prices in the European electricity market.

Strong Growth in Sales and Earnings

Given the successful first half of the year, and barring unusual events, the Motor-Columbus Group believes that sales and earnings for the full year 2006 will be significantly higher than last year (2005 consolidated sales: CHF 8.58 billion; 2005 consolidated net income: CHF 401 million). However, it must be borne in mind that the first six months were impacted by seasonal factors in energy business and by one-time special gains that are unlikely to recur in the second half of the year. For this reason, the Group currently expects momentum in operating performance to remain good but to slow down, especially in the Energy Segment, during the last six months of the year.

Motor-Columbus Ltd