Industry News

SFS Group returned to organic growth in the second half of 2019 – in the face of continuing adverse market conditions – thanks to project ramp-ups. Group profitability also showed a strong improvement over the course of 2019.

Sales for the full 2019 financial year increased by 2.5% and were fuelled primarily by the first time consolidation of Triangle Fasteners Corporation (TFC). Adjusted operating profit amounted to approximately CHF 239 million (€224.4 million), which corresponds to 13.4% of net sales.

Guided by its clear focus on customer needs and innovation trends, SFS says it was well positioned in 2019 and able to defend its competitive positions despite the continuing challenging environment in key markets. This achievement was supported by the ramp-up of major projects, especially during the second half of the year. Sales increased by 3.5% in the second half compared to the same period in 2018, of which 1.1% was organic growth. Organic sales growth in the first half was a negative –2.4%.

Consolidated sales for the full financial year of 2019 amounted to CHF 1.78 billion (€1.67 billion). This corresponds to an increase of 2.5% from the previous financial year. Changes in the scope of consolidation had a positive effect of 4.4% on sales growth. Foreign currency translation had a negative effect of -1.3%. In organic terms, full year sales showed a slight decline of -0.6%.

Engineered Components: Challenges well mastered
The improvement in SFS Group’s operating performance in the second half of 2019 was driven in particular by the Engineered Components segment, which accounts for more than half of SFS Group’s total sales. This segment’s sales rose by 10.7% in the second half compared to the first half. Its significant growth was broadly based and supported by the seasonal ramp-up of several projects, as well as a recovery in the electronics sector.

Full year 2019 sales for the Engineered Components segment amounted to CHF 957.1 million. Taking the negative currency translation effect of -1.2% into consideration, organic sales growth was slightly positive at 0.2%. The overall flat sales growth is attributed to weak market demand.

Fastening Systems: Market position further expanded
Sales at the Fastening Systems segment amounted to CHF 498.3 million in 2019, an increase of 14% from the previous financial year. The aforementioned first time consolidation effects contributed 18.5% to sales growth. In organic terms, sales growth was slightly negative at -2.1%. The Construction division profited from a stable market environment and generated slightly positive organic growth. Sales in the Riveting division, by contrast, were pressured by the very challenging situation in the German and British automotive markets. Currency effects reduced reported sales by -2.4%.

Thanks to innovative products, and the successful acquisition of TFC Ltd, the segment strengthened its competitive position in the construction business.