Hi Ki
Studer is making profits and selling to large high-end clients like the BBC. I added a link to the bottom of the page.
These are excerpts of a letter sent to Blake Augsburger CEO Harman Pro refering to the economic reasons behind Harman's tactics for closing Studer:
"The decision is particularly difficult to understand given the profitability of Studer. The company has been operating in a highly profitable manner for many years, and even in the crisis year of 2008/09 managed to achieve an EBIT of 10 percent. So why place its very existence at risk?
A look at the situation within the mixer group as a whole leads one to suspect that the move was prompted in the bid to cover up gross management errors at Soundcraft. Soundcraft missed the changeover to the digital age and in technological terms is lagging behind the competition. In 2005 the Soundcraft factory in Potters Bar was renovated at considerable cost to create a high- tech production plant. Yet within a short time production had to be transferred to China, since Studer Professional Audio GmbH, Regensdorf (CH)
when the workshops in England have been standing empty.
And although Soundcraft is cross- subsidised by Studer via the mandatory purchase of raw materials at excessively high margins, Soundcraft recorded a high loss in the last financial year and is in debt.
The situation at Studer is completely different. Thanks to the past few highly successful financial years, the company enjoys high liquidity and an equity ratio of more than 80 percent. The lion?s share of these funds was passed on internally in the form of loans (to Soundcraft, among others).
Given all these facts, one must conclude that Soundcraft is publicly seeking to nurse its ailing balance sheet back to health at the cost of Studer.
The move to transfer production is only the first step on the way to Studer?s dismantlement. In the next phase, Soundcraft will want to continue profiting from the wealth of technical expertise in Regensdorf and, with the aid of Studer?s R&D Department, endeavour to catch up with the competition. But once it no longer needs Studer?s know-how, the Regensdorf company will be closed down for good, thereby freeing the way for the transfer of Studer?s considerable assets to England and for Soundcraft?s turnaround."
Yesterday, after 28 years working for Studer, an employee was fired for giving an interview to the local press and talking to the Union.
Can anyone help out? I am looking for US bloggers who might be interested in the story.
Best, Carla
http://www.broadcastnow.co.uk/technology/bbc-radio-picks-up-studer-consoles/5005948.article