Bossard Group is on course for growth in Europe despite a economic environment that the group described as more challenging.
Q3 worldwide sales grew 2.7% to CHF 218.5 million, compared to the previous year (+3.2% in local currency). However, once adjusted for acquisitions – Bossard picked up Boysen in the summer to grow its aerospace presence – sales declined marginally, by 0.6% in local currency, compared to the same period last year.
With economic tensions between the USA and China – Bossard has sites in North America and China – coupled with a “waning economy”, the group battled persistent headwinds. It was more positive in Europe and Asia alike.
Europe flies with acquisition
Europe sales rose 8.1% to CHF 127.1 million, (plus 9.6% in local currency). After adjustment for the Boysen acquisition, growth in Q3 was 1.6% in local currency.
In the nine months of the year, European business was up 3.6% to CHF 391.9 million (2.1% excluding acquisitions).
Net sales declined 10.9% to CHF 53.9 million (-11.8% in local currency) as Bossard contended with a range of factors – customer projects concluding, a slowing economy with a knock on effect of lower demand of major customers, as well as he product mix of the largest US electric vehicle manufacturer changing significantly with a new model series, driving sales down.
Asia’s lively growth
Bossard said the effects of the trade dispute between the USA and China are becoming increasingly tangible in Asia. In spite of those, Bossard was still able to increase sales in Q3 by 8.4% to CHF 37.6 million (+8% in local currency). Continued growth is also due to previous years’ investment in expanding the distribution network and in modernising infrastructures. In the nine months, Bossard posted 9.2% growth in Asia (+11.4% in local currency). Without the acquisition effect, the increase was 5.9% in local currency.
With political uncertainties continuing (notwithstanding the Brexit deal on the table at time of writing) modest demand is expected by Bossard. However, the group is confident of exploiting further growth by focusing on well performing segments and concentrating on engineering services and innovative logistics solutions.