Industry News

Bossard Group reported that Quarter One 2016 sales were up by 0.9% over the same quarter in 2015 to CHF 170.4 million (approximately 154.9 million euros).

Bossard said sales development was particularly held back by the business in Switzerland, where appreciation of the Swiss franc has sustainably impacted the competitive position of many of its industrial customers. Bossard was able to more than offset the decrease in sales in Switzerland through additional business in other European markets. European sales grew 2.5% to CHF 103.6 million (+1.4% in local currency) contributing 61% of the Group total. Bossard believes a major reason for its resilience in a challenging market environment is its targeted acquisition policy, which has solidified Bossard’s competitive position in Europe over the past years.

In contrast, American sales dropped 0.9% against Quarter One 2015 to CHF 43.8 million (a 4.8% decrease in local currency). These numbers underscore the demand situation with two of Bossard’s key customers. While sales to the leading US electric vehicle manufacturer continued to rise, demand from a major customer in the agricultural technology sector decreased as expected. Another negative development in America was slightly lower demand from the electronics industry.

Asian sales were CHF 23 million, slightly up in local currency but down in Swiss francs. Growth was in double-digits in India, Singapore and Taiwan but Chinese sales showed a slight decrease. Bossard said demand from the electronics industry is weaker in Asia as well.

Bossard CEO David Dean noted: “After a weak third and fourth quarter of 2015, we had a good start into 2016. On average, sales were 7% above the second half of 2015. The biggest uncertainty for the remainder of the year is the general development of the economy, which is not yet on solid footing.”

Bossard also announced it has received official aerospace certification in France. It obtained AS9120 in Switzerland in February and is working towards certification in Canada. Bossard acquired Aero-Space Southwest Inc in the US last year. Bossard said: “The positive outlook for the aerospace industry is the reason for the growing involvement of Bossard in this sector, which is especially applicable for France as an industrial location. Thanks to its premium products and services Bossard can increasingly gain a larger foothold in the aerospace sector, which is characterised by achieving an above average profitability.”