Swiss firms tackle strong franc by paring prices, getting discounts

Zurich

SWISS companies are cutting prices, asking suppliers for discounts, paying staff in euros and demanding new hours to protect profits from a soaring franc currency.

The central bank last month abandoned its cap on the Swiss franc, causing the currency to strengthen and prompting firms across Switzerland to warn of a plunge in profits. The 1.20 per euro cap had protected the export-reliant economy from the effects of a strong currency since 2011. "We did the maths, and would have gone into the red from normal profitable numbers this year if we hadn't done anything," said Adrian Fuchser, the head of Schneeberger AG Lineartechnik, a maker of precision machinery.