10/14/2014 12:50:00 AM
NEWS BRIEFS
Bossard Grows Amid “Challenging” Conditions
Bossard Group reported third quarter sales increased 1.1% to CHF 152.5 million.
The Zug, Switzerland-based company said Q3 sales in Europe grew 1.5% to CHF 98.5 million.
“The lower growth rates as compared to previous quarters correlate with the persistent downward-trending economic indicators which are partly due to the geopolitical uncertainties in Europe,” the company added.
Demand in Asia remained robust, with a 15.7% sales jump to CHF 26.7 million on demand from new customers.
Sales in the U.S. remained “soft” due to weaker demand from a major customer and electric vehicle manufacturer Tesla’s temporary plant closure in Fremont, CA. Q3 sales in the U.S. dropped 10.9% to CHF 27.3 million.
Overall Bossard sales in the first nine months of 2014 climbed 4.1% to CHF 473.5 million, though “the more challenging market environment in Europe, partly rooted in geopolitical uncertainties, did slow growth in the third quarter.”
Nine-month sales in Europe gained 5.2% to CHF 306.7 million, while sales in Asia rose 16.9% to CHF 73.8 million. U.S. sales dropped 7.2% to CHF 93 million.
“For the fourth quarter, we expect to see very different sales trends from one region of the world to another. While in Asia we are continuing to target above-average growth, we expect demand to remain sluggish in Europe based on the current leading indicators.
“In America, the burgeoning sales volume with Tesla will affect business positively. Overall, for the fourth quarter we anticipate sales to remain on the level of the third quarter. For fiscal year 2014, we expect sales to be in the region of CHF 625 million, an increase of around 4% in local currency compared to last year.”
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