SFS Group achieved organic growth of 3.7% in the second half of 2020, driven by a distinct recovery in demand and seasonal effects. Sales for the 2020 financial year amounted to CHF 1.705 billion (€1.57 billion).
SFS reports that higher production capacity utilisation and strict cost management as well as mix effects supported profitability in the second half of the year. For the 2020 financial year an operating profit of approximately CHF 227 million was realised, which corresponds to an EBIT margin of 13.3%.
While demand in the first half of the year fell sharply in some areas due to the Covid-19 pandemic, there was a clear and sustained recovery in demand in various end markets and regions from the summer months onward. For instance, the automotive-related business areas, which had been heavily impacted by the collapse in demand and factory shutdowns at key customers during the first half of the year, showed a strong recovery. In the second half of the year, sales momentum also profited from successful product launches with customers from the electronics industry.
Sales grew organically by 3.7% in the second half of the year compared to the previous year period. In the first half of the year, sales showed a decline of –10.4% in organic terms. For the full year, organic sales growth was -3.2%. Consolidation effects contributed 3% to full-year sales, while currency translation had a negative effect of -4.1%. Gross sales for the 2020 financial year amounted to CHF 1.7 billion.
Engineered Components sees significant increase
The increase in sales at SFS Group in the second half of the year is largely due to the recovery at the Engineered Components (EC) segment, which accounts for more than 50% of total sales.
Segment sales increased sharply by 36.3% in the second half of the year compared to the first half of the year. In the period under review, SFS generated sales of CHF 898.3 million which corresponds to a decrease of -6.1% compared to the previous year. The negative currency effect of -4.7% was partially offset by a positive consolidation effect of 2.6%.
Fastening Systems profits from robust demand
The Construction division, which focuses on the construction industry, was subject to less severe restrictions related to Covid-19 during the first half of the year, reflected in an only limited reduction in demand. In organic terms sales matched the level from the previous year. The Riveting division, however, which focuses primarily on applications in industrial and automotive-related areas, experienced a significant decline in sales.
Sales in the Fastening Systems segment for the period under review amounted to CHF 489.7 million, which corresponds to a decline of -1.7% compared to 2019. Positive consolidation effects added 6% to the reported sales figure, while negative currency effects reduced reported sales by -5.3%.
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.
Don't have an account? Sign Up
Signing up to Fastener + Fixing Magazine enables you to manage your account details.
