8/27/2015 12:43:00 AM
NEWS BRIEFS
Tesla’s Success Shores Up Bossard Sales
The Bossard Group reported sales during the first six months of 2015 increased 5.4% to CHF 336.4 million, largely due to acquisitions.
“The takeovers enabled the Bossard Group to consolidate its market position in various regional markets and thereby, become even stronger in the field of high-quality fastening solutions,” the Swiss company explained.
In 2014, Bossard acquired Arizona-based distributor Aero-Space Southwest; the fastening solutions division of Forind Avio Elettronica S.p.a. in Italy; and a 60% stake in the Norwegian Torp Fasteners company.
In 2015, Bossard bought Titanox’s division for self-clinching fasteners in France.
However, first-half earnings were limited by lower demand and currency appreciation. EBIT declined 7.8% to CHF 37.8 million, operating margin slipped to 11.2%, and net income dipped 8% to CHF 29.6 million.
The number of employees increased 10% to 2,018, including 103 coming from acquisitions.
Bossard said it’s facing difficult conditions in Europe, where the appreciation of the Swiss franc has lowered demand for its products. First-half sales in Europe dipped 3.7% to CHF 199 million.
Business growth in America was also driven by acquisitions, including the takeover of Aero-Space Southwest, which added 33% in sales growth to CHF 87.2 million.
“Without this acquisition, sales would have increased slightly by 0.6 percent to CHF 65.9 million.”
In Asia, Bossard achieved 6.6% sales growth to CHF 50.2 million, despite “subdued demand in China.
Bossard forecasts full-year sales of CHF 660 million, boosted by its partnership with U.S. electric vehicle manufacturer Tesla, which awarded Bossard a three-year, $140 million contract to provide production fasteners, engineering and logistical services. In response Bossard opened a new distribution center near the Tesla factory in Fremont, CA.
Related Stories:
• ARaymond Eyes India for Automotive Fastener Growth
• Berkshire Hathaway Buying Precision Castparts
• Chicago Rivet Fastener Sales Decline
Related Links:
Share: