Bobst Group sees decrease in demand for special machines and complex lines

“A significant negative impact came from the decision of the Swiss National Bank to discontinue the minimum exchange rate of CHF 1.20 per Euro​,” said Jean-Pascal Bobst, CEO, Bobst Group, in a teleconference to financial analysts this week. ​

Sheet-fed products remains stable

“Based on the assumptions of an unchanged number of machines, spare parts and services sold to our customers, but taking into consideration the current exchange rates of CHF 1.05 per Euro and CHF 0.92 per US-Dollar, the Group has lowered its turnover guidance for the year 2015 from CHF 1.25 to CHF 1.33bn​.” 

Talking about the group’s financial results, Bobst said sales in the second half of 2014 reached CHF 740m compared with CHF 560m in the first six months of the year and to CHF 791m in the second semester 2013. 

Sales of sheet-fed products remained stable compared to the previous year at CHF 639m. 

“We are not looking at the worst case scenario. We don’t want to lose ground on market share due to the new exchange rate situation​,” he added. 

“It’s quite complex today to have a clear picture. Half of the year is already hedged. We already bought raw materials for 2015 at the former exchange rate, only a little can be purchased at a more favourable rate in that perspective, today​.” 

Despite the economic climate, Bobst said demand for products for the corrugated packaging industry was strong and compensated for weaker demand behind products for the folding carton industry. 

Sales of Web-fed products decreased by 15.8% and achieved CHF 283m for the year 2014. 

Special machines and complex lines

“The reduction is mainly due to lower demand for special machines and complex lines. Sales of Services and spare parts remained stable compared to the previous year at CHF 377m​,” he said. 

Geographical distribution saw a 2% improvement in sales in Europe with a significant improvement in countries such as Poland, Spain and Italy compared to lower sales in Russia, Romania, Germany and the UK. 

Sales in the Americas reduced by 3.3% compared to 2013. Turnover in the US increased but other countries such as Mexico and Brazil recorded lower sales than in 2013.

Sales in Asia remained significantly below the previous year mainly due to one-time sales recorded in 2013 in Indonesia and a general slow down in China. 

“European countries are looking for clear signs of a positive momentum of the economy, there is political instability in many countries such as Ukraine and Egypt which weigh on the economy and China’s growth rate is lower than expected​,” said Bobst. 

“India has started to regain confidence after the last elections, while North America remains strong and South America remains subdued, the global political instability will impeach on our business dynamics​. 

“In this very challenging context we are happy about the resilience of the packaging industry and our first three digital printing press on corrugated board will be installed in the first quarter of 2015​.” 

2014 Overview

For the full year 2014, consolidated sales decreased by CHF 54m to CHF 1.3bn. Sales in the second half of 2014 reached CHF 740m compared with CHF 560m in the first six months of the year, and to CHF 791m in the second semester 2013. 

The consolidated net profit will be higher than announced on December 3, 2014. Net profit 2015 should be higher than CHF15m. 

Further details and updates will be given with Bobst Group results announcement on March 17, 2015.