The production and processing plants as well as the distribution companies entered the second half year with high order backlogs. Feedback received from our customers in the various markets regarding their expectations for the near future is so far positive. The markets for high grade steel products, the area of activity of our company, are currently substantially more positive than those for commodities.

The extent to which the current turbulence in the financial and capital markets will cause a reassessment is difficult to judge at present. The currently irrational development of the CHF/EUR exchange rate will be a substantial burden for our Swiss plants if it continues in the long term. As far as possible, we are responding to it with corresponding countermeasures. We assume that the distortion caused by currency speculation will return to normality at a later date.

As is well known, the production volume in the second half-year is always affected by plant holidays in July or August and December. Based on the market expectations and present order backlogs, we expect revenue and net income for the full year 2011 to be again substantially higher than last year.