In the near future, too, a number of more structural fac
tors on which we can exert little or no influence will leave
their mark on the development of Group earnings.
In various countries where the Group operates it will be
impossible to pass on cost increases in prices, or not to a
sufficient extent. On the one hand this is the consequen
ce of government measures, and on the other of greater
and keener competition.
This situation does not create an optimum investment
climate. The investments of the Group will nevertheless
amount to about N.fl. 260 million in 1981compared with
N.fl. 327 million in the past financial year. These invest
ments are mainly for purposes of replacement and for
completion of projects already started.
The good results from the past and the- in the light of the
world-wide recession - reasonable profit level in 1980
have provided our enterprise with a financially sound
starting position to bridge over less easy times.
In the years ahead, however, an even more vigorous
policy will have to be followed for that purpose in the
commercial and production engineering field in order to
maintain our position in numerous markets. It is essential
in that connection to achieve effective and substantial
economies. Projects aimed at cost control wili therefore
be considerably intensified.
We accordingly believe that in our short-term predictions
- given the present economic, political and social situa
tion in the world - we must exercise the necessary
Amsterdam, April 3, 1981
Van der Werf
Van de Vijver