Jul 29, 2021

07/29/2021 | 12:02am EDT Message : *Required fields Very high capacity utilisation Developments in the hydraulics markets were extremely dynamic. Demand for Bucher Hydraulics components and solutions was exceptionally high in all key regions and segments. This trend was reinforced by the fact that customers were stocking up their orders due to the general increase in industry delivery times. The division saw order intake rise by more than half over the prior-year period and the order book hit a record high. Making the necessary adjustments to production capacities was extremely challenging. Nevertheless, sales were up markedly over the first half of 2020 and were only slightly lower than the record level of 2019. Thanks to higher sales and the low cost base, the operating profit margin came in significantly higher than in the prior-year period. Focus on electrohydraulics Bucher Hydraulics acquired the mobile electric drive technology business from Lenze Schmidhauser in Romanshorn, Switzerland, in early July 2021. Renamed Bucher Hydraulics Mobile Drives, this business unit develops and delivers frequency converters for mobile applications. With this acquisition, Bucher Industries is focusing more strongly on the trend towards electrification and positioning itself in the rapidly growing market for electrohydraulic solutions. Integration of the business is proceeding according to plan. Bucher Emhart Glass January - June Change in Full yearCHF million 2021 2020 % %1) 2020Order intake 235 134 74.8 70.6 317Net sales 172 179 -3.9 -6.2 421Order book 221 214 3.2 0.8 155Operating profit (EBITDA) 28 20 43.1 53 as % of net sales 16.4% 11.0% 12.7%Operating profit (EBIT) 24 15 57.0 44 as % of net sales 13.7% 8.4% 10.5%Number of employees at closing date 1'565 1'694 -7.6 1'611 1) Adjusted for currency effects Very good profitability despite slightly lower sales Demand for glass container manufacturing equipment recovered in the first half of 2021. With the easing of restrictions in the gastronomic sector and at major public events, demand for glass containers rose again. Customers began more and more to approve projects and to invest in modernising their machines. Overall, the division's order intake rose by well over half compared to the very low level of the previous year, with a significant increase in orders for glass-forming machinery in particular. The recovery was reflected in sales, but with a delay. The capacity utilisation increased toward the end of the reporting period. Challenges were still posed by restrictions on travel, higher transport prices and bottlenecks in logistics, as well as the situation in Malaysia, where public authorities have imposed new restrictions due to COVID-19. In this environment, sales declined slightly on the prior-year period, which still benefited from a very high order book. The operating profit margin increased substantially, in part due to a favourable product mix. Bucher Specials January - June Change in Full yearCHF million 2021 2020 % %1) %2) 2020Order intake 179 127 41.0 39.7 31.8 261Net sales 149 137 8.4 7.5 7.1 273Order book 106 72 47.8 46.3 26.0 70Operating profit (EBITDA) 14 7 105.9 12 as % of net sales 9.4% 5.0% 4.4%Operating profit (EBIT) 12 5 154.3 7 as % of net sales 7.9% 3.4% 2.5%Number of employees at closing date3) 941 908 3.6 2.0 868 1) Adjusted for currency effects 2) Adjusted for currency and acquisition effects 3) 960 employees (FTEs), of whom 19 on short-time work (June 2020: 967 employees, of whom 59 on short-time work) Higher order intake in all business units The easing of pandemic-related restrictions in the gastronomic sector and at major public events in many regions of the world had a positive impact on Bucher Specials. Demand at Bucher Vaslin picked up again in the northern hemisphere. At Bucher Unipektin, as well, order intake rose over the very low prior-year period. The performance of the two acquisitions in the areas of processing equipment for citrus fruits and vacuum belt drying technology was encouraging. The project business relating to equipment for core and stone fruit processing and beer filtration also showed signs of a recovery. Bucher Landtechnik surpassed last year's good business trend despite challenges in the supply chain. At Jetter, recovery in the glass industry was reflected in a significant increase in orders related to industrial automation. In this positive environment, Bucher Specials was able to strongly increase its order intake. Sales also grew year on year and ended the period roughly on a par with the first half of 2019. The operating profit margin also increased considerably. Outlook for 2021 The Group expects the economic recovery to continue throughout the remainder of the year. However, the uncertainties related to the pandemic are likely to persist. In addition, there are difficulties in procurement and logistics, combined with strong increases in both material and transport costs. The increasing shortage of skilled labour will also make it more difficult to boost capacities. Kuhn Group anticipates a positive development in its most important markets. Challenges related to production and the supply chain are expected to persist and lead to higher costs in the second half of the year. The division expects a marked rise in sales for 2021. The operating profit margin is also likely to be considerably higher thanks to good capacity utilisation and price increases. Bucher Municipal anticipates good demand and expects sales to increase. The full-year consolidation of Spoutvac, the Australian manufacturer of sewer cleaning vehicles, as well as the newly launched electrified products, particularly in the sweeper and winter maintenance equipment businesses, will also make a contribution. The operating profit margin should increase due to better utilisation of production capacities and efficiency gains. Bucher Hydraulics expects the dynamic momentum in the hydraulics markets to continue. Capacity utilisation will remain at a high level. For 2021, the division anticipates marked growth in sales and the operating profit margin, despite the challenges it faces in production. Bucher Emhart Glass expects demand to continue to rise and production capacity utilisation to be higher in the second half of the year. Given the low level of capacity utilisation in the first quarter, however, the division expects sales for the year as a whole to be down slightly on 2020. Thanks to the product mix, the operating profit margin is likely to be higher despite the fact that personnel and material costs will continue to rise over the course of the year. At Bucher Specials, ongoing restrictions will probably continue to cause a certain measure of restraint in the project business, however, uncertainties should diminish. The division expects significantly higher sales and an operating profit margin in the mid-to-high single-digit range thanks to the cost-savings measures put in place. Overall, the Group expects to see a substantial increase in sales, in the operating profit margin and in the profit for the year. The interim report as well as the investor relations handout on the results for the first half of 2021 are available on bucherindustries.com under Media dossiers. Contact for investors and financial analysts Manuela Suter, CFO T +41 58 750 15 50 ir@bucherindustries.com Contact for media Silvia Oppliger, Head of Group Communications T +41 58 750 15 40 media@bucherindustries.com _________ Simply great machines Bucher Industries is a global technology group with leading market positions in speciality areas of mechanical and vehicle engineering. The company's operations include specialised agricultural machinery, municipal vehicles, hydraulic components, manufacturing equipment for the glass container industry and for wine and fruit juice production, as well as automation technology. The company's shares are traded on the SIX Swiss Exchange (SIX: BUCN). Further information is available at bucherindustries.com. Additional performance measures: Internally and externally Bucher Industries uses key figures that are not defined by Swiss GAAP FER. The composition and calculation of the individual performance measures are set out here: bucherindustries.com/en/additional-performance-measures. ----------------------------------------------------------------------------------------------------------------------- End of ad hoc announcement ----------------------------------------------------------------------------------------------------------------------- Language: EnglishCompany: Bucher Industries AG Murzlenstrasse 80 8166 Niederweningen SwitzerlandPhone: +41 58 750 15 00E-mail: info@bucherindustries.comInternet: www.bucherindustries.comISIN: CH0002432174Listed: SIX Swiss ExchangeEQS News ID: 1222505End of Announcement EQS Group News Service=------------ 1222505 29-Jul-2021 CET/CEST