Industry News

Bossard Group reported continued growth in the first half of 2015, with sales increasing by 5.4% to CHF 336.4 million. The Swiss Franc revaluation, however, impacted profitability particularly in Europe.

Bossard says growth was mainly due to the acquisitions made in the USA, Italy, France and Norway. In local currency Bossard’s European business showed a 4.6% increase in sales, although factoring out the benefit of acquisitions, like for like sales declined 1.8%. Converted to Swiss Francs the revenue showed a drop of 3.7% to CHF 199 million. Business units in Switzerland were most severely affected by the unfavourable currency effect with perceptible falls in sales and margins.

Following the acquisition of Aero-Space Southwest Inc, American sales increased 33.1% compared with the first half of 2014 to CHF 87.2 million (in local currency sales increased 25.5%). Excluding acquisitions sale were down 5.2% in local currency. Bossard says expected growth from the largest US electric vehicle maker did not compensate fully for market related demand reduction from a major customer in the agricultural machinery segment. However, Bossard expects higher volume from both customers in the second half of the year.

Asian sales increased a “respectable” 6.6% to CHF 50.2 million in the first half of 2015 (2.9% increase in local currency). Bossard notes that, whilst the current increase in demand in most countries is encouraging, it is proving less dynamic in China than in previous reporting periods.

The effect of the Swiss Franc revaluation and associated margin pressures have been reflected in reduced profitability in the first half of the year. Compared to the all-time high net income in the previous year, net income fell by CHF 2.7 million to CHF 29.6 million. Excluding negative currency effects the profit would have been, on a comparable basis, slightly up on last year’s level.