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Marked rise in sales while order book remains strong

Bucher Industries AG / Key word(s): Quarterly / Interim Statement

27-Oct-2022 / 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, 27 October 2022 | Ad hoc announcement pursuant to article 53 listing rules

Demand for Bucher Industries’ products and services remained at a high level in the first nine months of 2022. Despite continuing challenges in the areas of procurement, logistics and personnel, the divisions were once again able to increase sales considerably.

 

Group

 

January – September

Change

Full year

CHF million

2022

2021

%

%1)

%2)

2021

Order intake

2’954

2’943

0.4

4.5

3.6

3’948

Net sales

2’624

2’364

11.0

14.7

13.9

3’176

Order book

2’143

1’684

27.3

32.9

32.4

1’873

Number of employees at closing date

14’177

13’482

5.2

 

4.8

13’562

1) Adjusted for currency effects
2) Adjusted for currency and acquisition effects

 

Developments in the markets of Bucher Industries were mixed over the course of the reporting period. Overall, order intake was similar to the previous year but weakened at a very high level during the third quarter. The flat to downward trend at Kuhn Group, Bucher Hydraulics and Bucher Specials was offset by the increase in orders at Bucher Municipal and Bucher Emhart Glass. The situation in the supply chain and logistics improved temporarily towards mid-year but remained challenging due to the war between Russia and Ukraine as well as rigorous COVID-19 measures in China. Difficulties recruiting qualified employees persisted, particularly in the USA. This negatively impacted both process efficiency and efforts to increase production. Nevertheless, sales saw renewed growth, which was attributable to higher volumes and price increases. The strengthening of the Swiss franc was reflected in a negative currency effect of around four percentage points. The Group's order book remained extremely high with an order backlog of seven months.

 

Kuhn Group

 

January – September

Change

Full year

CHF million

2022

2021

 

%

%1)

2021

Order intake

1’225

1’247

 

-1.8

2.0

1’676

Net sales

1’141

1’004

 

13.7

16.9

1’319

Order book

1’004

831

 

20.9

25.7

941

Number of employees at closing date

5’974

5’738

 

4.1

 

5’832

1) Adjusted for currency effects

 

Pleasing increase in sales  Demand for agricultural machines remained at a very high level. One reason for this was the fact that agricultural incomes were at a satisfactory level, in particular due to good prices for agricultural products. Also, manufacturers of agricultural machines having problems to deliver, customers anticipating price increases and generally low inventories in the distribution network prompted early orders. Dealers, on the other hand, reported slightly weaker sales to agricultural producers in the third quarter. Reasons for this included higher costs for fertiliser, feed and diesel, the increase in interest rates and higher prices for agricultural machines. Added to that was the extended drought in parts of Europe as well as North and South America, which resulted in lower harvest yields. In this environment, order intake at Kuhn Group remained at the same high level as in the prior-year period. Despite difficulties in the supply chain, logistics and recruitment, the division's sales grew considerably, with Brazil making an important contribution.

 

Bucher Municipal

 

January – September

Change

Full year

CHF million

2022

2021

 

%

%1)

2021

Order intake

505

451

 

12.0

16.9

599

Net sales

367

377

 

-2.6

1.6

523

Order book

359

235

 

52.6

59.5

237

Number of employees at closing date

2’472

2’381

 

3.8

 

2’329

1) Adjusted for currency effects

 

Stabilisation of sales development   Demand for Bucher Municipal’s products was strong, with a normalisation reported in the third quarter compared with the high prior-year period. Overall, order intake rose considerably especially for truck-mounted and compact sweepers, including the electric models. The new spreaders in the winter equipment business also enjoyed brisk demand. The division was severely impacted by difficulties in the global supply chains. The procurement of chassis for truck-mounted sweepers and sewer cleaning and refuse vehicles, in particular, remained challenging but also electronic and hydraulic components were very often only delivered with delays. In combination with staff bottlenecks especially in Australia this had a negative impact on production efficiency. Towards the end of the reporting period, the output could be increased and sales were at the same level as in the prior-year period. In September, Bucher Municipal took over the software development company Enway with 15 employees and sites in Berlin and Singapore. With this acquisition, the division strengthens its expertise so that it will be able to offer automation solutions in the future.

 

Bucher Hydraulics

 

January – September

Change

Full year

CHF million

2022

2021

%

%1)

%2)

2021

Order intake

591

646

-8.4

-6.0

-8.6

856

Net sales

575

509

12.9

15.2

13.2

681

Order book

328

282

16.6

19.7

19.7

320

Number of employees at closing date

2’977

2’790

6.7

 

6.7

2’825

1) Adjusted for currency effects  
2) Adjusted for currency and acquisition effects

 

Demand continues to normalise  The hydraulics markets declined in the first nine months of 2022, while still at an exceptionally high level. Demand for Bucher Hydraulics components and solutions weakened accordingly. The decline in order intake was mainly attributable to Asia, where the slowdown had already become apparent at the end of 2021, and intensified further as a result of the COVID-19 restrictions in China. Most recently, the normalisation also reached North America and parts of Europe. Order intake was down in most segments, in materials handling in particular, but also in construction equipment and agricultural machinery. The division still has a very strong order book and capacity utilisation remained high as a result. Sales were up again, with the increase particularly strong in North America.

 

Bucher Emhart Glass

 

January – September

Change

Full year

CHF million

2022

2021

 

%

%1)

2021

Order intake

437

392

 

11.3

19.0

522

Net sales

342

284

 

20.5

28.2

394

Order book

362

267

 

35.8

45.6

285

Number of employees at closing date

1’608

1’553

 

3.5

 

1’563

1) Adjusted for currency effects

 

Pleasing business performance  Demand for glass containers remained at a very high level. Accordingly, the customers of Bucher Emhart Glass invested in the modernisation of their plant or in completely new production sites to increase their production capacities, despite the rising cost of energy. The division saw order intake rise again over the high prior-year period, with a strong increase in orders particularly for glass-forming machinery and corresponding service parts. The high increase was reported in all regions except North and South America. Production capacity utilisation was very high, and the order book was at an extremely high level. Sales rose markedly, also in China, where pandemic-related measures adopted by the authorities again had an increasingly adverse impact on the business environment.

 

Bucher Specials

 

January – September

Change

Full year

CHF million

2022

2021

%

%1)

%2)

2021

Order intake

255

256

-0.4

3.2

-0.8

366

Net sales

251

239

4.9

8.6

5.8

321

Order book

124

92

34.9

40.6

31.9

121

Number of employees at closing date

1’086

958

13.4

 

7.8

953

1) Adjusted for currency effects
2) Adjusted for currency and acquisition effects

 

Heterogeneous development  Developments in the business units of Bucher Specials were mixed in the first nine months of the year. Interest remained keen among customers of Bucher Vaslin, however this was only partly reflected in the business performance due to difficulties in the supply chain. 2022 has been a positive year for Bucher Unipektin so far. Sales were up thanks to the strong order book at the start of the year as well as the acquisition of the Czech company Denwel in January. While business performance at Bucher Landtechnik was down, due to delivery difficulties among manufacturers as well as uncertainty in the Swiss agricultural market, it was still at a high level. The positive trend driven by developments at Bucher Emhart Glass continued at Jetter, although the supply situation and price trend remained highly challenging, particularly for electronics components. Overall, order intake at Bucher Specials was on the previous year’s level and sales rose slightly.

 

Outlook for 2022

The Group expects demand in the fourth quarter to weaken compared to the high prior-year period. The extraordinarily strong order book means that capacities will remain heavily utilised. Difficulties in procurement as well as the shortage of skilled labour are likely to persist for the time being and continue to put pressure on margins. All the divisions are impacted by these challenges but to different degrees. For sales, Kuhn Group and Bucher Hydraulics expect a considerable increase, Bucher Municipal a similar level as 2021 and Bucher Specials an increase. All four divisions anticipate an operating profit margin on a par with that of 2021. At Bucher Emhart Glass, both sales and the operating profit margin will rise considerably. The Group expects considerably higher sales than in the previous year and an operating profit margin on a par with that of 2021. The Group's profit for the year is expected to exceed the high level of the previous year.

 

Contact for investors and financial analysts
Manuela Suter, CFO
T +41 58 750 15 50
ir@bucherindustries.com

Contact for media
Silvia Oppliger, 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 specialised agricultural machinery, municipal vehicles, hydraulic components, manufacturing equipment for the glass container industry, equipment for processing beverages, as well as 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.


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:

1473059


 

End of Announcement

EQS News Service

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