Bossard Reports 23.9% Growth in First Half Sales

Bossard Group reported a 22.7% rise in local currency sales for first half 2013, delivering CHF 311.5 million (251.6 million euros) revenue, up 23.9% on the CHF 251.4 million (203.1 million euros) in H1 2012.  Operating profit (EBIT) was CHF 35.8 million, which represented an operating margin of 11.9 percent (10.6 percent in the previous year period). Bossard boosted consolidated net income by CHF 6.5 million to CHF 28.6 million over the previous year (CHF 22.1 million in the previous year period). The profit increase was described as “even more remarkable in the light of higher financing costs and tax expenditures.” The integration of KVT-Fastening, acquired late in 2012, was reported as having gone as well as expected. European sales surged 43.8% to CHF 195.5 million primarily due to the acquisition. European demand for the second half is expected to stabilize. Bossard anticipates continued growth in America and Asia during the second half of the year, due in large part to the positive trend in new customer business. American sales for the half year equated to CHF 73.1 million – adjusted for the divestment of Bossard Metrics Inc this represented 3.1% growth. Asian sales grew 7.7% to CHF 42.9 million, reflecting what Bossard says is a slight recovery in the market and acquisition of new customers. Consolidated net income increased by CHF 6.5 million to CHF 28.6 million for the half year.

CEO David Dean was pleased with the first half performance. “For us, the results are a confirmation of our targeted development work. The acquisition of KVT-Fastening clearly strengthened our market position in Europe, which is reflected in our profitability. Moreover, the growth rates we saw in different markets also confirmed our strategy.” Bossard described the outlook as “worthy of cautious optimism”.