First Half of 2015 – First results

The Swiss franc revaluation had consequences for Bossard, particularly in Europe. Conversion of the revenue in the local currency consequently resulted in a drop in sales of 3.7 percent to CHF 199.0 million. However, in local currency the Group showed a 4.6 percent increase. Excluding the acquisitions mentioned, the Bossard Group in Europe recorded a slight decline in sales of 1.8 percent in local currency. The business units in Switzerland were the most severely affected by the unfavorable currency development. The currency discounts granted and the fall in demand from industrial customers resulted in a perceptible fall in sales and margins. On a positive note, the abovementioned acquisitions have fully met the expectations of the executive committee.

In America, the Bossard Group consolidated its market position further. Following the acquisition of Aero-Space Southwest, Inc., sales increased by no less than 33.1 percent to CHF 87.2 million (in local currency: +25.5 percent) compared to the first half of 2014. Excluding the revenue growth resulting from the acquisitions, the sales increase was 0.6 percent (in local currency: -5.2 percent). This trend is in line with expectations and was largely influenced by opposing developments with two major customers. Sales with the largest US electric vehicle manufacturer increased according to plan, but this growth has not yet managed to compensate fully for the market-related fall in demand from a major customer in the agricultural machinery segment in the first half of the year. In the second half of the year, an altogether higher volume is expected due to the sales forecasts of these two customers.

The Bossard Group also made progress in Asia, with sales increasing by a respectable 6.6 percent to CHF 50.2 million in the first six months. This equates to an increase of 2.9 percent in local currency. Bossard continues to profit from the startup investments it has made in various markets. Whilst the current increase in demand in most countries is highly encouraging, it is proving to be less dynamic in China than in the previous reporting periods.

The effects of the Swiss franc revaluation and the associated pressure on margins have been reflected in reduced profitability of the Bossard Group in the first half of the year. Compared to the Group’s all-time high net income in the previous year, the net income fell by CHF 2.7 million to CHF 29.6 million. Excluding negative currency effects of the Swiss franc revaluation, the profit would have been on a comparable basis slightly above last year’s level.

Bossard will publish the detailed semi-annual report on August 25, 2015.