4/15/2013 10:48:00 AM
NEWS BRIEF
The Bossard Group generated a 22.8% increase in revenue to CHF 156.1 million (US$67.7 million) in the first quarter of 2013.
“This jump in turnover is due to the integration of KVT-Fastening which was acquired at the end of November 2012,” the company stated.
Without the KVT acquisition and divestment of Bossard Metrics Inc., USA, revenue fell 0.9%.
“In 2013 the different trends in sales over previous quarters has continued in the three regions. In America and Asia we have been able to increase turnover compared to the best quarter from the previous year. By contrast, levels of turnover in Europe were below the level for the first quarter of 2012.”
“Nevertheless, the start of the year in Europe has been positive. There has been a revival in demand from our customers and, as a result, we were able to increase our levels of turnover compared to the second half of 2012.”
U.S.
Bossard reported Q1 turnover of CHF 38.3 million, which, when adjusted for the divestment of Bossard Metrics Inc., represents an increase of 7.1% in Swiss francs. The Group benefited from continued strong demand from existing and new customers.
Europe
The turnover for European business in Q1 2013 was CHF 98.6 million, an increase in Swiss francs of 40.6%, mainly due to the acquisition of KVT-Fastening. Excluding the acquisition, revenue declined 5.8% .
“Bossard has only managed to achieve continued strong growth in Eastern European markets.”
In the first few months the development of KVT-Fastening was in line with expectations. KVT turnover also ended below the values for Q1 2012 by an equivalent amount.
“Under continuing and tough economic conditions in all our relevant European markets we did, however, record a return to increasing levels of turnover compared to Q3 and Q4 2012.”
Asia
Over the first three months of 2013 business in Asia, In Asia Bossard generated a Q1 turnover gain of 2% to CHF 19.2 million.
“Based on average daily turnover, sales volumes in all regions were at, or slightly above, the levels for the previous year.”
“Following a weak Q3 and Q4 in 2012 we have started the year well,” stated CEO David Deen. “Ignoring the growth from acquisition, the increase in turnover was 4.8 percent above that over the second half of 2012. The greatest uncertainty for the rest of the year remains the trend in European economic activity, which continues to lack a solid foundation.”
“Our business’s key leading indicators, such as the Purchasing Managers Indices in our most important markets, are above the level for the previous year and point to a more positive out- look for economic activity. It will be borne out over the coming weeks and months as to whether the recent re-emergence of uncertainty around the European debt crisis will stifle our customers’ clearly more positive expectations.”
Bossard expects continued positive growth over 2013 in America as well as in Asia, “provided the political agitations of the North Korean leadership do not lead to a further escalation.”
“We can also expect a gradual economic recovery in Europe and a revival in demand compared to the second half of 2012.” ©2013 GlobalFastenerNews.com
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