The Bossard Group has produced another strong financial performance in Q3 2017, with sales up 12.4% to CHF 194.6 million (approx $199 m).
All three market regions saw solid growth and sales overall rose 14.1% to CHF 589.7 million (approx US $603.2 m). Europe saw accelerated growth, with sales up 12.5% in Q3. In America, Bossard continues to benefit from the cooperation with the largest US electric vehicle manufacturer as well as the turnaround in demand from the second major customer, a company in the agricultural technology sector. Arnold Industries, a US company acquired in September 2016, also helped contribute to the above-average sales increase in America.
For Bossard, a trend of rising demand has continued since H2 2016, not least in Europe. For the first nine months, sales grew 9.1% to CHF 334.6 million. Bossard Group said the latest financials are “an expression of Bossard Group’s targeted acquisition policy which has systematically expanded and strengthened its market position in Europe”. All countries contributed to the increase, several with double-digit growth rates.
In Q3, the America business posted an increase in sales of 11.1% to CHF 52.0 million, due in no small part to the acquisition of US-based Arnold Industries. When adjusted for the acquisition, sales grew by 4.1 percent. At the end of September, total sales were CHF 166.3 million, a plus of 24.8 percent year-to-date. Underpinning the overall positive trend in America is the cooperation with the largest US electric vehicle manufacturer.
Growth momentum was not as strong as in H1 2017, due to the base effect from the acquisition of Arnold Industries and last year’s brisk third quarter sales to the US electric vehicle manufacturer. However, that same US customer launched production of a new car model in the third quarter, from which Bossard expects to boost its growth over the next several quarters. Bossard’s second major customer in America, a company active in the agricultural technology sector, also contributed to the overall positive performance in the third quarter.
Bossard made significant progress in Asia, gaining market share. In net terms, sales grew 13.8% to CHF 31.3 million in Q3. In the first nine months, the Bossard Group recorded an increase of 15.3% for this market region to a total of CHF 88.8 million.
CEO David Dean said: “We assume that demand will continue to be strong in both Europe and Asia. We expect a continued positive development in America as well, although the growth rate will fall short of the other markets due to the base effect described.”
For fiscal year 2017, Bossard anticipates overall sales to total CHF 780 million, compared to last year’s CHF 695 million.