Bossard Group reports third quarter 2018 sales at CHF 212.7 million, a 9.3% improvement on same period last year. For the first nine months Bossard has increased sales by 11.8% to CHF 659 million.
Bossard says growth slowed somewhat in Europe and Asia compared with Quarter 2 but growth in the America business was described as vigorous, partly due to increased demand from the largest US electric vehicle manufacturer.
In Europe, Bossard posted a 5.7% third quarter increase to CHF 117.6 million (+4% in local currency). Sales for the first nine months rose 13% to CHF 378.1 million (+8.7% in local currency). Bossard says the reasons for slower growth in Europe are manifold. Some customers are operating at full capacity, which reduces the potential for above-average growth. It also notes that the base for comparison, third quarter 2017, was already at a high level.
Bossard America’s business was substantially stronger in the third quarter with sales growing 16.2% to CHF 60.4 million (+14.8% in local currency). This contributed to a 8.2% increase to CHF 179.9 million in the first nine months of 2018 (+9.5% in local currency). The accelerated growth is driven by business with the largest US electric vehicle manufacturer, whose third model series resulted in a considerable boost in production.
In Asia, third quarter sales rose 10.9% to CHF 34.7 million (+7.8 in local currency). For the first nine months 2018 sales increased by 13.7 to CHF 101 million (+11.3% in local currency).
Bossard concludes that indications from its customers as well as the purchasing managers’ indices in its key markets point to continued economic expansion. Bossard therefore expects fourth quarter sales to be at a high level but reminds that Quarter 4 2017 will provide a strong comparative base.
It also noted that many customers are operating at full capacity, which is another factor in normalising growth rates, especially in Europe. The appreciation of the Swiss franc in recent weeks will also affect the Group results reported in that currency.
With business conditions changing compared to the first half of the year, Bossard is targeting sales on the order of CHF 865 million (2017: CHF 786.2 million) for full year 2018.
(CHF 100 approximately €87.5 at Interbank)
Will joined Fastener + Fixing Magazine in 2007 and over the last 15 years has experienced every facet of the fastener sector - interviewing key figures within the industry and visiting leading companies and exhibitions around the globe.
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