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25.04.2024 06:00:32 - dpa-AFX: EQS-News: Sales below the prior-year period with weaker market momentum, as expected (english)
Sales below the prior-year period with weaker market momentum, as expected
As expected, Bucher Industries' markets weakened over the course of the
first quarter of 2024 in line with the general economic slowdown. The
agricultural machinery market in particular was severely impacted by
economic and political uncertainties. Order intake and sales fell below the
prior-year period.
Group
1) Adjusted for currency effects
2) Adjusted for currency and acquisition effects
Demand for Bucher Industries' products and services declined over the course
of the first quarter of 2024 in line with the general economic slowdown. The
economic and political uncertainties affected the agricultural machinery
market in particular. Order intake fell below the prior-year period overall,
although the divisions were affected to varying degrees. While order intake
weakened significantly at Kuhn Group and Bucher Hydraulics, it was only
slightly below the prior-year period at Bucher Municipal, Bucher Emhart
Glass and Bucher Specials. Group sales fell significantly below the high
level of the prior-year period. Negative currency effects of four percentage
points also contributed to the decline. Production capacity was less
utilised and was adjusted to the lower volumes on a case-by-case basis. The
order book remained high with a range of five months.
Kuhn Group
1) Adjusted for currency effects
Decline in demand Demand for agricultural machinery continued to decline
during the reporting period. Farmers remained reluctant to invest because
prices for agricultural commodities had fallen, interest rates were high,
and fewer subsidies were available. In addition, inventories of agricultural
machinery remained high in the dealer network, which weakened demand in all
regions. Order intake remained especially low in Brazil, and in Europe the
uncertain political climate had a negative impact and wet weather conditions
delayed seeding. North America also showed signs of a slowdown. Kuhn Group's
sales fell significantly compared to the strong prior-year period. The order
book had a range of more than four months.
Bucher Municipal
1) Adjusted for currency effects
2) Adjusted for currency and acquisition effects
Increase in sales Demand remained stable overall at Bucher Municipal. The
truck-mounted sweeper and sewer cleaning vehicle segments benefited from the
improved delivery capacity for chassis. The compact sweeper business
declined, partly due to a reduction in subsidies for electrified vehicles in
Europe. Orders for refuse collection vehicles fell significantly compared to
the high level of the prior-year period but remained stable for winter
maintenance equipment. The maintenance services and spare parts business
continued to develop satisfactorily. Overall, order intake fell slightly
compared to the high level of the prior-year period, while sales increased.
The order book had a range of more than six months.
Bucher Hydraulics
1) Adjusted for currency effects
Decline in demand Demand fell markedly in the hydraulics markets during the
reporting period, and Bucher Hydraulics' order intake declined significantly
compared with the strong prior-year period. This was largely due to the weak
market cycle in agricultural machinery, although the decline in demand for
construction machinery was also an important factor. The materials handling
business was more stable. The mobile electric drive technology solutions
business generally had shorter order and delivery times, because electronic
components were more readily available. The regions were affected
differently by the decline in demand, with the slowdown in market momentum
being particularly noticeable in Europe. The division's sales declined
significantly. The order book had a range of over three months.
Bucher Emhart Glass
1) Adjusted for currency effects
Slowdown in market momentum Demand for glass forming and inspection
machinery fell slightly compared to the very strong prior-year period but
improved again compared to the low level of the previous quarter. Bucher
Emhart Glass's order intake fell overall but was still at a high level.
Europe was particularly affected by the downturn, with the other regions
remaining stable. The division's capacity utilisation remained very high due
to its strong order book. However, its sales were slightly lower than in the
prior-year period, mainly due to currency effects. The order book had a
range of almost seven months.
Bucher Specials
1) Adjusted for currency effects
2) Adjusted for currency and acquisition effects
Varying market developments Bucher Specials' markets were subject to varying
developments during the reporting period. Demand remained stable at Bucher
Vaslin, while Bucher Unipektin's business developed positively. Bucher
Landtechnik and Bucher Automation both reported weakening business
performances. Order intake was slightly lower overall than in the prior-year
period, due to negative currency effects. Sales declined significantly. The
order book had a range of more than four months.
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.
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.
Contact for investors and financial analysts
Jin Wiederkehr, Investor Relations
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.
News Source: Bucher Industries AG
____________________________________________________________
1888897 25.04.2024 CET/CEST
Bucher Industries AG / Key word(s): Quarterly / Interim Statement
Sales below the prior-year period with weaker market momentum, as
expected
25.04.2024 / 06:00 CET/CEST
____________________________________________________________
As expected, Bucher Industries' markets weakened over the course of the
first quarter of 2024 in line with the general economic slowdown. The
agricultural machinery market in particular was severely impacted by
economic and political uncertainties. Order intake and sales fell below the
prior-year period.
Group
January - Chang- Full
March e year
CHF million 2024 2023 % %1) %2) 2023
Order intake 683 854 -20.0 -16.- -16.- 3'170
0 1
Net sales 853 970 -12.1 -7.7 -7.8 3'575
Order book 1'393 1'933 -28.0 -24.- -24.- 1'600
3 3
Average number of 14'644 14'88- -1.6 -1.7 14'795
FTEs 6
1) Adjusted for currency effects
2) Adjusted for currency and acquisition effects
Demand for Bucher Industries' products and services declined over the course
of the first quarter of 2024 in line with the general economic slowdown. The
economic and political uncertainties affected the agricultural machinery
market in particular. Order intake fell below the prior-year period overall,
although the divisions were affected to varying degrees. While order intake
weakened significantly at Kuhn Group and Bucher Hydraulics, it was only
slightly below the prior-year period at Bucher Municipal, Bucher Emhart
Glass and Bucher Specials. Group sales fell significantly below the high
level of the prior-year period. Negative currency effects of four percentage
points also contributed to the decline. Production capacity was less
utilised and was adjusted to the lower volumes on a case-by-case basis. The
order book remained high with a range of five months.
Kuhn Group
January - Chang- Full
March e year
CHF million 2024 2023 % %1) 2023
Order intake 194 297 -34.- -31.- 1'121
7 6
Net sales 357 440 -18.- -14.- 1'422
9 9
Order book 490 855 -42.- -39.- 670
7 4
Average number of 5'840 6'20- -5.9 5'991
FTEs 5
1) Adjusted for currency effects
Decline in demand Demand for agricultural machinery continued to decline
during the reporting period. Farmers remained reluctant to invest because
prices for agricultural commodities had fallen, interest rates were high,
and fewer subsidies were available. In addition, inventories of agricultural
machinery remained high in the dealer network, which weakened demand in all
regions. Order intake remained especially low in Brazil, and in Europe the
uncertain political climate had a negative impact and wet weather conditions
delayed seeding. North America also showed signs of a slowdown. Kuhn Group's
sales fell significantly compared to the strong prior-year period. The order
book had a range of more than four months.
Bucher Municipal
January - Chang- Full
March e year
CHF million 2024 2023 % %1) %2) 2023
Order intake 149 159 -6.2 -1.6 -2.3 576
Net sales 139 129 7.1 12.7 11.9 573
Order book 315 340 -7.4 -2.6 -2.6 311
Average number of 2'505 2'49- 0.6 -0.1 2'545
FTEs 0
1) Adjusted for currency effects
2) Adjusted for currency and acquisition effects
Increase in sales Demand remained stable overall at Bucher Municipal. The
truck-mounted sweeper and sewer cleaning vehicle segments benefited from the
improved delivery capacity for chassis. The compact sweeper business
declined, partly due to a reduction in subsidies for electrified vehicles in
Europe. Orders for refuse collection vehicles fell significantly compared to
the high level of the prior-year period but remained stable for winter
maintenance equipment. The maintenance services and spare parts business
continued to develop satisfactorily. Overall, order intake fell slightly
compared to the high level of the prior-year period, while sales increased.
The order book had a range of more than six months.
Bucher Hydraulics
January - Chang- Full
March e year
CHF million 2024 2023 % %1) 2023
Order intake 147 194 -24.- -20.- 670
2 4
Net sales 182 206 -11.- -7.5 744
6
Order book 190 298 -36.- -33.- 230
3 3
Average number of 3'062 2'99- 2.2 3'042
FTEs 6
1) Adjusted for currency effects
Decline in demand Demand fell markedly in the hydraulics markets during the
reporting period, and Bucher Hydraulics' order intake declined significantly
compared with the strong prior-year period. This was largely due to the weak
market cycle in agricultural machinery, although the decline in demand for
construction machinery was also an important factor. The materials handling
business was more stable. The mobile electric drive technology solutions
business generally had shorter order and delivery times, because electronic
components were more readily available. The regions were affected
differently by the decline in demand, with the slowdown in market momentum
being particularly noticeable in Europe. The division's sales declined
significantly. The order book had a range of over three months.
Bucher Emhart Glass
January - Chang- Full
March e year
CHF million 2024 2023 % %1) 2023
Order intake 113 124 -9.- -4.- 520
2 1
Net sales 124 133 -6.- -0.- 524
2 8
Order book 283 306 -7.- -2.- 302
5 7
Average number of 1'662 1'64- 1.3 1'655
FTEs 0
1) Adjusted for currency effects
Slowdown in market momentum Demand for glass forming and inspection
machinery fell slightly compared to the very strong prior-year period but
improved again compared to the low level of the previous quarter. Bucher
Emhart Glass's order intake fell overall but was still at a high level.
Europe was particularly affected by the downturn, with the other regions
remaining stable. The division's capacity utilisation remained very high due
to its strong order book. However, its sales were slightly lower than in the
prior-year period, mainly due to currency effects. The order book had a
range of almost seven months.
Bucher Specials
January - Chang- Full
March e year
CHF million 2024 2023 %1) %1) 2023
Order intake 94 100 -5.9 -1.2 369
Net sales 72 85 -14.- -10.- 398
8 3
Order book 142 168 -15.- -13.- 122
6 1
Average number of 1'509 1'49- 0.9 1'500
FTEs 5
1) Adjusted for currency effects
2) Adjusted for currency and acquisition effects
Varying market developments Bucher Specials' markets were subject to varying
developments during the reporting period. Demand remained stable at Bucher
Vaslin, while Bucher Unipektin's business developed positively. Bucher
Landtechnik and Bucher Automation both reported weakening business
performances. Order intake was slightly lower overall than in the prior-year
period, due to negative currency effects. Sales declined significantly. The
order book had a range of more than four months.
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.
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.
Contact for investors and financial analysts
Jin Wiederkehr, Investor Relations
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.
News Source: Bucher Industries AG
____________________________________________________________
End of Media Release
____________________________________________________________
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: 1888897
End of News EQS News Service
____________________________________________________________
1888897 25.04.2024 CET/CEST
