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01.03.2024 06:01:06 - dpa-AFX: EQS-Adhoc: Strong business result for 2023 (english)
Strong business result for 2023
Ad hoc announcement
Niederweningen, 1 March 2024 | Ad hoc announcement pursuant to article 53
listing rules
Over the course of the reporting period, demand for Bucher Industries'
products and services declined in line with the general economic slowdown,
and order intake normalised. Sales remained on a par with the prior-year
level, with capacity utilisation lower in the second half of the year. The
operating profit margin reached a very good 11.9%. The profit for the year
was CHF 356 million, once again above the high figure of the previous year.
Earnings per share were CHF 34.38, exceeding the prior year. The board of
directors proposes a dividend of CHF 13.50 per share.
Group
1) Adjusted for currency effects
2) Adjusted for currency and acquisition effects
Over the course of 2023, demand for Bucher Industries' products and services
declined in line with the general economic slowdown, and order intake
normalised from its high prior-year figure. The increasing economic
uncertainties were particularly noticeable in the agricultural machinery
market. Kuhn Group, Bucher Municipal, Bucher Hydraulics and Bucher Emhart
Glass each reported a downward trend in their order intake, albeit to
varying degrees. Bucher Specials recorded an increase in orders as a result
of an acquisition. Group sales remained on a par with the prior-year level,
with price increases largely compensating the negative currency effects.
Production capacity utilisation was lower in the second half of the year,
and production planning was adjusted to the lower volumes on a case-by-case
basis. The order book normalised while remaining high with a range of more
than five months. The operating profit margin reached a very good 11.9%. The
profit for the year was CHF 356 million, once again above the high figure of
the previous year. Earnings per share were CHF 34.38, exceeding the prior
year.
Pleasing return on assets The return on net operating assets (RONOA) after
tax was a high 24.7%, above the long-term target of 20% and thus also well
above the cost of capital of 8%. The pleasing return is attributable to the
good sales level and the resulting operating profit. Average net operating
assets increased significantly year on year, due mainly to higher
inventories in response to supply chain challenges, significantly lower
advances from customers, and higher investments. The increase in net working
capital, higher level of investment and payment of the dividend had a
negative impact on free cash flow. The financial position remains very
solid, with net liquidity of CHF 396 million at the end of the year and an
equity ratio of 61%.
Kuhn Group
1) Adjusted for currency effects
Decline in demand after a prolonged strong cycle After two very strong
financial years, demand for agricultural machinery weakened during the
reporting period. Lower prices for agricultural commodities, a decline in
income due to unfavourable weather conditions and high interest rates made
farmers less willing to invest. This, along with the improved delivery
capacity for agricultural machinery, led to a rise in inventories in the
dealer network and consequently a decline in demand. Kuhn Group's order
intake was down by 31% compared with the high prior-year level, while sales
fell by 6%. The operating profit margin of 11.4% was only slightly below the
high level of the previous year.
Bucher Municipal
1) Adjusted for currency effects
2) Adjusted for currency and acquisition effects
Order intake still at a high level Bucher Municipal continued to experience
high demand in a stable market situation. Order intake fell by 7% overall
compared with the high prior-year level. The situation in the supply chain
improved, and sales exceeded the prior year by 8%. The order book reached
the same high level as in 2022, with a range of more than six months. The
operating profit margin was 6.3% and included additional inventory
write-downs at a site in Australia and expenses for the implementation of a
new ERP system.
Bucher Hydraulics
1) Adjusted for currency effects
Demand down but still at a high level Demand in the hydraulics markets
weakened during the reporting period but remained at a high level, while
Bucher Hydraulics' order intake was down 12% on the strong prior year. The
construction machinery segment declined, with agricultural machinery also
declining in the second half of the year. Materials handling was stable. The
mobile electric drive technology solutions business continued to perform
well. The division's sales remained on a par with the previous year due to
the full order book at the end of 2022, falling by 2%. The operating profit
margin improved slightly compared with 2022 to 13.9% thanks to the
division's good cost structure and its ability to pass on some of the
material price increases.
Bucher Emhart Glass
1) Adjusted for currency effects
Market momentum weakening Demand for glass forming machinery and inspection
machinery remained strong throughout much of the reporting period. Towards
the end of 2023, however, a slowdown became apparent. Bucher Emhart Glass's
order intake fell by 10% but was still at a very high level. Capacity
utilisation continued to be very strong, and sales were maintained at the
same high level as in the previous year. The operating profit margin
increased further and reached a very good 19.5%. This was driven by the high
capacity utilisation, the favourable product mix and positive currency
effects.
Bucher Specials
1) Adjusted for currency effects
2) Adjusted for currency and acquisition effects
Diverging market developments Bucher Specials' markets were subject to
varying developments during the reporting period. Demand at Bucher Vaslin
developed negatively, while business at Bucher Unipektin remained stable.
Bucher Landtechnik reported weakening business performance. Bucher
Automation benefited from a positive market development. Order intake was up
2% on the high level recorded in the previous year. Sales rose by 15%,
attributable in part to the Polish company of Bucher Unipektin, which has
been consolidated since the end of 2022. The operating profit margin was
8.3%.
For a better environment
Bucher strives to develop products that will allow customers to reduce their
ecological footprint in business operations. With that in mind, Kuhn Group
introduced an entirely new product range for mechanical weeding, so that
cereals and row crops can be freed from weeds without the use of chemicals.
Bucher Municipal approved for all markets the electrified 4m3 compact
sweeper in the "CityCat" line that was launched on the market for the first
time last year. With this latest model, Bucher Municipal has now completed
its range of electrified compact sweepers. In addition, the production sites
are being made more energy-efficient and environmentally friendly. Not only
was energy consumption reduced in the reporting period, but the volume of
self-generated solar power was more than doubled. Scope 1 and 2 CO2
emissions have been cut by 8'000 tonnes, corresponding to a decrease of 9%.
Outlook for 2024
The Group anticipates that demand will continue to soften slightly in 2024
against an environment increasingly characterised by uncertainties. Kuhn
Group expects sales to decrease and the operating profit margin to be lower
but remaining in the double digits. Bucher Municipal forecasts sales in line
with prior-year figures. The operating profit margin is likely to increase.
Due to weakening market momentum, Bucher Hydraulics expects both sales and
the operating profit margin to decline slightly. Bucher Emhart Glass
anticipates slightly weaker sales compared with the very high sales of 2023.
Accordingly, the operating profit margin is expected to be somewhat lower
than in 2023. Bucher Specials assumes its sales and the operating profit
margin will be on a par with the previous year. The Group expects a slight
decline in sales as a result of the slowdown in business momentum for 2024.
Due to the lower capacity utilisation as well as rising employment costs,
the operating profit margin is also expected to decline, but still remaining
in the double digits. Accordingly, the Group's profit for the year is
expected to be lower than the high level recorded in the previous year.
Consistent dividend policy
The board of directors proposes a dividend of CHF 13.50 per share to the
annual general meeting on 18 April 2024. The dividend paid in the previous
year was CHF 13.00 per share. The proposal takes into account a consistent
dividend policy, the profit for the year 2023, the solid financial position,
the outlook for the current year as well as further internal and external
investment opportunities.
Changes to the board of directors and group management
On 19 April 2023, the annual general meeting elected Urs Kaufmann as a new
member of the board of directors. The board of directors proposes to the
annual general meeting on 18 April 2024 the re-election of Urs Kaufmann as a
member of the board of directors and proposes that he be elected as
successor to Philip Mosimann as chairman of the board. The board of
directors would like to take this opportunity to thank Philip Mosimann for
his many years of dedicated service from 2002 to 2016 as CEO and from 2016
to 2024 as chairman of the board. As published in the press release on 10
January 2024, Frank Mühlon will take over the division management of Bucher
Hydraulics from Daniel Waller effective 1 July 2024 and join group
management. Both changes ensure long-term succession planning.
Annual general meeting
The annual general meeting of Bucher Industries AG will be held on 18 April
2024 at the Hotel Mövenpick in Regensdorf, starting at 3.30 p.m. The
proposals can be found in the invitation to the annual general meeting,
which will be sent out to shareholders on 26 March 2024. Shareholders
registered in the company's share register on 12 April 2024 will be entitled
to vote at the annual general meeting. From 13 to 18 April 2024, the share
register will be closed for entries. Shares purchased on or after 22 April
2024 are not entitled to a dividend. The dividend will be paid on 24 April
2024. The 2023 annual report will be available for download from 1 March
2024, and the invitation to the annual general meeting from 26 March 2024,
at bucherindustries.com.
The annual report, the annual press and analysts' conference presentation as
well as the investor relations handout on the results for the financial year
2023 are available on bucherindustries.com under " Media dossiers".
Contact for investors and financial analysts
Manuela Suter, CFO
T +41 58 750 15 50
ir@bucherindustries.com
Contact for media
Saskia Rusch, Head of Group Communications
T +41 58 750 15 40
media@bucherindustries.com
_________
Simply great machines
Bucher Industries is a global technology group with leading market positions
in speciality areas of mechanical and vehicle engineering. The company's
operations include agricultural machinery, municipal vehicles, hydraulic and
electronic components as well as electrohydraulic systems, manufacturing
equipment for the glass container industry, equipment for processing
beverages and automation solutions. The company's shares are traded on the
SIX Swiss Exchange (SIX: BUCN). Further information is available at
bucherindustries.com.
Additional performance measures: Internally and externally Bucher Industries
uses key figures that are not defined by Swiss GAAP FER. The composition and
calculation of the individual performance measures are set out here:
bucherindustries.com/en/additional-performance-measures.
In cases of doubt, the German version of this press release is authorative.
____________________________________________________________
1849013 01-March-2024 CET/CEST
Bucher Industries AG / Key word(s): Annual Results
Strong business result for 2023
01-March-2024 / 06:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this
announcement.
____________________________________________________________
Ad hoc announcement
Niederweningen, 1 March 2024 | Ad hoc announcement pursuant to article 53
listing rules
Over the course of the reporting period, demand for Bucher Industries'
products and services declined in line with the general economic slowdown,
and order intake normalised. Sales remained on a par with the prior-year
level, with capacity utilisation lower in the second half of the year. The
operating profit margin reached a very good 11.9%. The profit for the year
was CHF 356 million, once again above the high figure of the previous year.
Earnings per share were CHF 34.38, exceeding the prior year. The board of
directors proposes a dividend of CHF 13.50 per share.
Group
Chang-
e
CHF million 2023 2022 % %1) %2)
Order intake 3'170 3'858 -17.8 -14.- -15.-
2 0
Net sales 3'575 3'597 -0.6 3.7 2.8
Order book 1'600 2'081 -23.1 -19.- -20.-
6 2
Operating profit (EBIT) 424 425 -0.2
% of net sales 11.9% 11.8%
Profit for the year 356 335 6.3
% of net sales 9.9% 9.3%
Earnings per share in CHF 34.38 32.36 6.2
Operating free cash flow 123 69 79.2
Net cash/debt 396 457 -13.5
Total assets 2'958 2'979 -0.7
Equity 1'816 1'702 6.7
Equity ratio 61.4% 57.1%
Return on equity (ROE) 20.2% 20.7%
Net operating assets (NOA) average 1'398 1'178 18.7
Return on net operating assets (RONOA) 24.7% 28.6%
after tax
Average number of FTEs 14'79- 14'05- 5.3 2.3
5 3
Employees at 31 December 14'85- 14'87- -0.1 -0.3
8 6
CO2 emissions in tCO2e 81'51- 89'67- -9.1
0 2
1) Adjusted for currency effects
2) Adjusted for currency and acquisition effects
Over the course of 2023, demand for Bucher Industries' products and services
declined in line with the general economic slowdown, and order intake
normalised from its high prior-year figure. The increasing economic
uncertainties were particularly noticeable in the agricultural machinery
market. Kuhn Group, Bucher Municipal, Bucher Hydraulics and Bucher Emhart
Glass each reported a downward trend in their order intake, albeit to
varying degrees. Bucher Specials recorded an increase in orders as a result
of an acquisition. Group sales remained on a par with the prior-year level,
with price increases largely compensating the negative currency effects.
Production capacity utilisation was lower in the second half of the year,
and production planning was adjusted to the lower volumes on a case-by-case
basis. The order book normalised while remaining high with a range of more
than five months. The operating profit margin reached a very good 11.9%. The
profit for the year was CHF 356 million, once again above the high figure of
the previous year. Earnings per share were CHF 34.38, exceeding the prior
year.
Pleasing return on assets The return on net operating assets (RONOA) after
tax was a high 24.7%, above the long-term target of 20% and thus also well
above the cost of capital of 8%. The pleasing return is attributable to the
good sales level and the resulting operating profit. Average net operating
assets increased significantly year on year, due mainly to higher
inventories in response to supply chain challenges, significantly lower
advances from customers, and higher investments. The increase in net working
capital, higher level of investment and payment of the dividend had a
negative impact on free cash flow. The financial position remains very
solid, with net liquidity of CHF 396 million at the end of the year and an
equity ratio of 61%.
Kuhn Group
Change
CHF million 2023 2022 % %1)
Order intake 1'121 1'613 -30.5 -27.5
Net sales 1'422 1'510 -5.9 -1.7
Order book 670 1'019 -34.2 -31.0
Operating profit (EBIT) 163 176 -7.8
% of net sales 11.4% 11.7%
Average number of FTEs 5'991 5'994 -0.1
Employees at 31 December 5'791 6'011 -3.7
1) Adjusted for currency effects
Decline in demand after a prolonged strong cycle After two very strong
financial years, demand for agricultural machinery weakened during the
reporting period. Lower prices for agricultural commodities, a decline in
income due to unfavourable weather conditions and high interest rates made
farmers less willing to invest. This, along with the improved delivery
capacity for agricultural machinery, led to a rise in inventories in the
dealer network and consequently a decline in demand. Kuhn Group's order
intake was down by 31% compared with the high prior-year level, while sales
fell by 6%. The operating profit margin of 11.4% was only slightly below the
high level of the previous year.
Bucher Municipal
Change
CHF million 2023 2022 % %1) %2)
Order intake 576 619 -7.0 -1.4 -2.3
Net sales 573 529 8.2 14.2 13.0
Order book 311 310 0.5 6.3 2.1
Operating profit (EBIT) 36 32 14.3
% of net sales 6.3% 6.0%
Average number of FTEs 2'545 2'421 5.1 3.9
Employees at 31 December 2'572 2'523 1.9 0.9
1) Adjusted for currency effects
2) Adjusted for currency and acquisition effects
Order intake still at a high level Bucher Municipal continued to experience
high demand in a stable market situation. Order intake fell by 7% overall
compared with the high prior-year level. The situation in the supply chain
improved, and sales exceeded the prior year by 8%. The order book reached
the same high level as in 2022, with a range of more than six months. The
operating profit margin was 6.3% and included additional inventory
write-downs at a site in Australia and expenses for the implementation of a
new ERP system.
Bucher Hydraulics
Change
CHF million 2023 2022 % %1)
Order intake 670 764 -12.2 -8.5
Net sales 744 756 -1.6 2.6
Order book 230 316 -27.2 -24.2
Operating profit (EBIT) 104 101 2.1
% of net sales 13.9% 13.4%
Average number of FTEs 3'042 2'921 4.1
Employees at 31 December 3'198 3'092 3.4
1) Adjusted for currency effects
Demand down but still at a high level Demand in the hydraulics markets
weakened during the reporting period but remained at a high level, while
Bucher Hydraulics' order intake was down 12% on the strong prior year. The
construction machinery segment declined, with agricultural machinery also
declining in the second half of the year. Materials handling was stable. The
mobile electric drive technology solutions business continued to perform
well. The division's sales remained on a par with the previous year due to
the full order book at the end of 2022, falling by 2%. The operating profit
margin improved slightly compared with 2022 to 13.9% thanks to the
division's good cost structure and its ability to pass on some of the
material price increases.
Bucher Emhart Glass
Change
CHF million 2023 2022 % %1)
Order intake 520 578 -10.1 -6.2
Net sales 524 525 -0.3 4.1
Order book 302 319 -5.3 -1.5
Operating profit (EBIT) 102 98 4.6
% of net sales 19.5% 18.6%
Average number of FTEs 1'655 1'600 3.4
Employees at 31 December 1'693 1'678 0.9
1) Adjusted for currency effects
Market momentum weakening Demand for glass forming machinery and inspection
machinery remained strong throughout much of the reporting period. Towards
the end of 2023, however, a slowdown became apparent. Bucher Emhart Glass's
order intake fell by 10% but was still at a very high level. Capacity
utilisation continued to be very strong, and sales were maintained at the
same high level as in the previous year. The operating profit margin
increased further and reached a very good 19.5%. This was driven by the high
capacity utilisation, the favourable product mix and positive currency
effects.
Bucher Specials
Change
CHF million 2023 2022 % %1) %2)
Order intake 369 363 1.5 3.7 -3.4
Net sales 398 347 14.7 17.1 9.3
Order book 122 154 -20.8 -19.2 -19.2
Operating profit (EBIT) 33 30 10.4
% of net sales 8.3% 8.6%
Average number of FTEs 1'500 1'057 41.9 5.4
Employees at 31 December 1'532 1'503 1.9 1.9
1) Adjusted for currency effects
2) Adjusted for currency and acquisition effects
Diverging market developments Bucher Specials' markets were subject to
varying developments during the reporting period. Demand at Bucher Vaslin
developed negatively, while business at Bucher Unipektin remained stable.
Bucher Landtechnik reported weakening business performance. Bucher
Automation benefited from a positive market development. Order intake was up
2% on the high level recorded in the previous year. Sales rose by 15%,
attributable in part to the Polish company of Bucher Unipektin, which has
been consolidated since the end of 2022. The operating profit margin was
8.3%.
For a better environment
Bucher strives to develop products that will allow customers to reduce their
ecological footprint in business operations. With that in mind, Kuhn Group
introduced an entirely new product range for mechanical weeding, so that
cereals and row crops can be freed from weeds without the use of chemicals.
Bucher Municipal approved for all markets the electrified 4m3 compact
sweeper in the "CityCat" line that was launched on the market for the first
time last year. With this latest model, Bucher Municipal has now completed
its range of electrified compact sweepers. In addition, the production sites
are being made more energy-efficient and environmentally friendly. Not only
was energy consumption reduced in the reporting period, but the volume of
self-generated solar power was more than doubled. Scope 1 and 2 CO2
emissions have been cut by 8'000 tonnes, corresponding to a decrease of 9%.
Outlook for 2024
The Group anticipates that demand will continue to soften slightly in 2024
against an environment increasingly characterised by uncertainties. Kuhn
Group expects sales to decrease and the operating profit margin to be lower
but remaining in the double digits. Bucher Municipal forecasts sales in line
with prior-year figures. The operating profit margin is likely to increase.
Due to weakening market momentum, Bucher Hydraulics expects both sales and
the operating profit margin to decline slightly. Bucher Emhart Glass
anticipates slightly weaker sales compared with the very high sales of 2023.
Accordingly, the operating profit margin is expected to be somewhat lower
than in 2023. Bucher Specials assumes its sales and the operating profit
margin will be on a par with the previous year. The Group expects a slight
decline in sales as a result of the slowdown in business momentum for 2024.
Due to the lower capacity utilisation as well as rising employment costs,
the operating profit margin is also expected to decline, but still remaining
in the double digits. Accordingly, the Group's profit for the year is
expected to be lower than the high level recorded in the previous year.
Consistent dividend policy
The board of directors proposes a dividend of CHF 13.50 per share to the
annual general meeting on 18 April 2024. The dividend paid in the previous
year was CHF 13.00 per share. The proposal takes into account a consistent
dividend policy, the profit for the year 2023, the solid financial position,
the outlook for the current year as well as further internal and external
investment opportunities.
Changes to the board of directors and group management
On 19 April 2023, the annual general meeting elected Urs Kaufmann as a new
member of the board of directors. The board of directors proposes to the
annual general meeting on 18 April 2024 the re-election of Urs Kaufmann as a
member of the board of directors and proposes that he be elected as
successor to Philip Mosimann as chairman of the board. The board of
directors would like to take this opportunity to thank Philip Mosimann for
his many years of dedicated service from 2002 to 2016 as CEO and from 2016
to 2024 as chairman of the board. As published in the press release on 10
January 2024, Frank Mühlon will take over the division management of Bucher
Hydraulics from Daniel Waller effective 1 July 2024 and join group
management. Both changes ensure long-term succession planning.
Annual general meeting
The annual general meeting of Bucher Industries AG will be held on 18 April
2024 at the Hotel Mövenpick in Regensdorf, starting at 3.30 p.m. The
proposals can be found in the invitation to the annual general meeting,
which will be sent out to shareholders on 26 March 2024. Shareholders
registered in the company's share register on 12 April 2024 will be entitled
to vote at the annual general meeting. From 13 to 18 April 2024, the share
register will be closed for entries. Shares purchased on or after 22 April
2024 are not entitled to a dividend. The dividend will be paid on 24 April
2024. The 2023 annual report will be available for download from 1 March
2024, and the invitation to the annual general meeting from 26 March 2024,
at bucherindustries.com.
The annual report, the annual press and analysts' conference presentation as
well as the investor relations handout on the results for the financial year
2023 are available on bucherindustries.com under " Media dossiers".
Contact for investors and financial analysts
Manuela Suter, CFO
T +41 58 750 15 50
ir@bucherindustries.com
Contact for media
Saskia Rusch, Head of Group Communications
T +41 58 750 15 40
media@bucherindustries.com
_________
Simply great machines
Bucher Industries is a global technology group with leading market positions
in speciality areas of mechanical and vehicle engineering. The company's
operations include agricultural machinery, municipal vehicles, hydraulic and
electronic components as well as electrohydraulic systems, manufacturing
equipment for the glass container industry, equipment for processing
beverages and automation solutions. The company's shares are traded on the
SIX Swiss Exchange (SIX: BUCN). Further information is available at
bucherindustries.com.
Additional performance measures: Internally and externally Bucher Industries
uses key figures that are not defined by Swiss GAAP FER. The composition and
calculation of the individual performance measures are set out here:
bucherindustries.com/en/additional-performance-measures.
In cases of doubt, the German version of this press release is authorative.
____________________________________________________________
End of Inside Information
____________________________________________________________
Language: English
Company: Bucher Industries AG
Murzlenstrasse 80
8166 Niederweningen
Switzerland
Phone: +41 58 750 15 00
E-mail: info@bucherindustries.com
Internet: www.bucherindustries.com
ISIN: CH0002432174
Listed: SIX Swiss Exchange
EQS News ID: 1849013
End of Announcement EQS News Service
____________________________________________________________
1849013 01-March-2024 CET/CEST
