In a dynamic market environment characterised by high demand, supply chain bottlenecks and the ongoing Covid-19 pandemic, SFS Group seized opportunities that arose in each of its segments to boost its sales by 11.0% to CHF 1.89 billion (€1.88 billion) in 2021.
All end markets and regions contributed to this good growth. The result was a high level of production capacity utilisation that strengthened profitability and generated net income of CHF 248 million.
The Covid-19 pandemic continued to be the defining theme for the SFS Group in 2021 again. The market environment had already begun showing signs of recovery in the third quarter of 2020 and this recovery continued unabated during the first half of 2021. The first half of the year saw growth of 23.8% compared to the same period of the previous year, which was dominated by the lockdown. In the second half of the year, production slowdowns – yet another of the consequences of the Covid-19 pandemic – increasingly resulted in global supply chain disruptions as well as shortages of semiconductors and other raw materials, some of which also had an impact on call-offs at SFS.
Engineered Components
Performance in the Engineered Components segment was characterised by pent-up demand in the automotive and industrial areas, as well as persistently strong demand in the electronics division. Semiconductor shortages put a damper on recovery in the second half of the year and caused sales to decline by 1.8% compared with the first half. Overall, the segment generated sales of CHF 975.2 million, representing growth of 8.6% compared to the previous year. Sales growth was almost exclusively organic in nature, foreign currency and consolidation effects had minor impacts of –0.5% and +1.2%, respectively.
Fastening Systems
The exceptional demand situation that the Fastening Systems segment had already successfully leveraged in the first half of the year to generate record results continued in the second half, albeit at a slightly lower level. The good market position and robust supply chains enabled the segment to reliably serve customers and profit from strong demand. The segment succeeded in boosting its sales in this environment by 17.4% year over year to CHF 574.9 million. Consolidation effects and currency translation effects contributed +0.5% and +0.3%, respectively, to sales growth.
Outlook for 2022
Performance will remain characterised by major uncertainties as a result of smouldering geopolitical developments such as the current war in Ukraine, trade conflicts and sustained disruptions in supply chains. Uncertainties in international supply chains, which should gradually subside as the Covid-19 pandemic abates, are expected to persist until early 2023. In this environment, ensuring the highest possible focus on customers takes top priority. Investments in the selective expansion of our production capacity and thus the implementation of ambitious growth projects will continue.
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.
Will manages the content strategy across all platforms and is the guardian for the high editorial standards that the Magazine is renowned.
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