Tornos Gains on Tooling Machine Maker’s Job Cuts: Zurich Mover
The stock gained as much as 20 centimes to 7.05 francs. Shares of the Moutier-based company, whose products help produce Swiss watches, aircraft screws and medical devices, traded 0.7 percent higher at 6.90 francs at 9:37 a.m. in Zurich.
Tornos said it’s adapting to a shift in production to China from Europe and to the debt crisis weighing on demand in southern Europe, as well as the strong Swiss franc, which reduces the value of sales from other countries. The company said last month it wouldn’t break even at the level of earnings before interest and taxes in 2012, after first-half orders dropped 34 percent from a year earlier.
“Adapting the cost structure at Tornos seems to be the only way to try to compete,” Michael Inauen, an analyst at Zuercher Kantonalbank, wrote in a note to investors. He has a market-perform recommendation on the stock.
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