STS, the textile machinery business, reported operating profit for 2004 of Euro 77.2 million, up from Euro 62.2 million in 2003, and improved margins to 6.9% from 4.9% previously. Reduced costs, a higher percentage of value added in Asia and lower restructuring costs produced a 24% hike in operating profit despite lower sales. 2004 sales declined by around 5% (-3% currency adjusted) to approximately Euro 1.21 billion, hit by a lower level of
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| orders at the start of 2004 and a higher proportion of orders for synthetic fiber installations - which have a longer lead time.
Sales to China in 2004 accounted for 38% of all sales, up from 35% the previously, but the value of incoming orders slipped from 41% in 2003 to a more normal 30% last year. This slackening in demand from China was a consequence of the government's 'soft-landing' measures to restrain growth. However, increased orders from other Asian countries compensated the slackening sales. 
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