Ad hoc announcement
Niederweningen, 29 July 2021 | Ad hoc announcement pursuant to article 53 listing rules
Strong result in a dynamic environment
Demand for Bucher Industries' products and services was strong in the first half of 2021. Order intake increased by 50% compared to the prior-year period. Despite difficulties in the supply chain, in logistics and in personnel recruitment, sales rose markedly, almost reaching the record level of 2019. The operating profit margin rose substantially. Operating profit and profit for the period practically doubled.
Group
January - June | Change in | Full year | ||||
CHF million | 2021 | 2020 | % | %1) | %2) | 2020 |
Order intake | 1'722 | 1'153 | 49.3 | 50.3 | 48.3 | 2'838 |
Net sales | 1'608 | 1'357 | 18.5 | 18.7 | 17.9 | 2'741 |
Order book | 1'209 | 779 | 55.3 | 56.7 | 53.5 | 1'081 |
Operating profit (EBITDA) | 221 | 135 | 63.3 | 287 | ||
as % of net sales | 13.7% | 10.0% | 10.5% | |||
Operating profit (EBIT) | 179 | 94 | 89.9 | 204 | ||
as % of net sales | 11.2% | 7.0% | 7.4% | |||
Profit for the period | 138 | 68 | 102.5 | 152 | ||
as % of net sales | 8.6% | 5.0% | 5.5% | |||
Earnings per share in CHF | 13.40 | 6.71 | 99.7 | 14.71 | ||
Operating free cash flow | -8 | -25 | 67.6 | 313 | ||
Net cash/debt | 329 | 78 | 324.4 | 404 | ||
Total assets | 2'596 | 2'369 | 9.6 | 2'431 | ||
Equity | 1'489 | 1'322 | 12.6 | 1'391 | ||
Equity ratio | 57.3% | 55.8% | 57.2% | |||
Return on equity (ROE) | 15.8% | 13.2% | 10.9% | |||
Net operating assets (NOA) average | 1'079 | 1'208 | -10.7 | 1'151 | ||
Return on net operating assets | 25.1% | 11.6% | 13.5% | |||
(RONOA) after tax | ||||||
Number of employees at closing date3) | 13'404 | 12'412 | 8.0 | 6.8 | 12'598 | |
- Adjusted for currency effects
- Adjusted for currency and acquisition effects
- 13'428 employees (FTEs), of whom 24 on short-time work (June 2020: 12'811 employees, of whom 399 on short-time work)
Bucher Industries AG, 8166 Niederweningen, Switzerland | |
T +41 58 750 15 40 | |
media@bucherindustries.com, bucherindustries.com | 1/7 |
The first half of 2021 was very dynamic for Bucher Industries. The recovery that had begun in mid-2020, especially in the agricultural machinery market, intensified and expanded to the other markets. Order intake rose substantially in all divisions. While all sites were operational, certain restrictions caused by COVID-19 concerning operational processes and international travel remained in place. The divisions had been facing difficulties in the supply chain and in logistics since the start of the year, but these intensified toward the end of the period, leading to delivery bottlenecks and longer delivery times in general. The divisions also found it increasingly difficult to recruit additional qualified employees, which in some instances prevented them from expanding capacities to the desired extent. Nevertheless, group sales rose markedly compared to the prior- year period, almost reaching the record level of 2019. The operating profit margin rose substantially, due to the high level of capacity utilisation but also as a result of optimisation measures implemented in the prior year and lower travel and marketing costs caused by COVID-19. Operating profit and profit for the period practically doubled.
Significant increase in return on invested capital The return on net operating assets (RONOA) was 25.1%, above the long-term target of 20% and therefore also significantly above the cost of capital of 8%. The high return is mainly attributable to the marked increase in the operating profit margin and the level of capital commitment, which remained low. The good operating performance and lower dividend payment had a positive effect on free cash flow and thus on net cash/debt. The main focus of internal investments has been on the construction projects of Kuhn Group in Russia, Bucher Municipal in the UK and Bucher Hydraulics in Germany. At the beginning of the reporting period, the Group invested further in external growth by acquiring Khor and Merk Process.
Kuhn Group
January - June | Change in | Full year | ||||
CHF million | 2021 | 2020 | % | %1) | %2) | 2020 |
Order intake | 608 | 427 | 42.4 | 48.1 | 46.8 | 1'290 |
Net sales | 728 | 584 | 24.5 | 26.8 | 26.2 | 1'094 |
Order book | 467 | 236 | 98.3 | 107.5 | 105.4 | 587 |
Operating profit (EBITDA) | 108 | 69 | 58.1 | 125 | ||
as % of net sales | 14.9% | 11.7% | 11.4% | |||
Operating profit (EBIT) | 91 | 51 | 77.4 | 91 | ||
as % of net sales | 12.5% | 8.8% | 8.3% | |||
Number of employees at closing date3) | 5'800 | 5'158 | 12.4 | 11.0 | 5'194 | |
- Adjusted for currency effects
- Adjusted for currency and acquisition effects
- 5'803 employees (FTEs), of whom 3 on short-time work (June 2020: 5'213 employees, of whom 55 on short-time work)
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Very dynamic markets, but challenges in production and the supply chain Kuhn Group experienced exceptionally strong demand for machines and service parts, which was driven by multiple factors: high prices for agricultural products, the government support programmes for farmers in the previous year as well as overall favourable weather conditions. This resulted in a substantial upturn in North America, particularly in the arable sector, following several difficult years. In Europe, market conditions were good in both the arable sector and in the dairy and livestock industry. In Brazil, agricultural producers remained extremely eager to invest thanks to record-highmargins. In this dynamic environment, the division saw order intake rise by nearly half. At the same time, however, Kuhn Group also grappled with challenges in the supply chain and production. Compared to the prior-yearperiod, sales still rose substantially and even surpassed the first half of 2019. The higher sales volume resulted in a substantially higher operating profit margin.
Bucher Municipal
January - June | Change in | Full year | ||||
CHF million | 2021 | 2020 | % | %1) | %2) | 2020 |
Order intake | 298 | 225 | 32.2 | 28.9 | 25.2 | 460 |
Net sales | 256 | 215 | 19.0 | 15.8 | 12.2 | 462 |
Order book | 204 | 165 | 23.6 | 20.3 | 17.3 | 157 |
Operating profit (EBITDA) | 22 | 13 | 75.2 | 38 | ||
as % of net sales | 8.6% | 5.8% | 8.1% | |||
Operating profit (EBIT) | 17 | 8 | 112.8 | 28 | ||
as % of net sales | 6.5% | 3.6% | 6.0% | |||
Number of employees at closing date3) | 2'348 | 2'309 | 1.7 | -0.8 | 2'327 | |
- Adjusted for currency effects
- Adjusted for currency and acquisition effects
- June 2020: 2'314 employees (FTEs), of whom 5 on short-time work
Recovery in sales and operating profit margin Demand for Bucher Municipal products was good. The division saw order intake rise markedly over the prior-year period, with this positive trend driven largely by truck-mounted sweepers and the new line of "CityCat V20" compact sweepers. Orders for sewer cleaning vehicles also rose, which was partly attributable to the acquisition of the Australian company Spoutvac in autumn 2020. Bucher Municipal's production continued to be hampered by COVID-19 measures and problems in the supply chain. Procuring chassis, hydraulic components and batteries became increasingly difficult. Nevertheless, sales were up significantly over the hard-hitprior-year period and ended up at virtually the same high level as in 2019. Accordingly, the operating profit margin increased despite a difficult procurement environment.
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Bucher Hydraulics
January - June | Change in | Full year | |||
CHF million | 2021 | 2020 | % | %1) | 2020 |
Order intake | 429 | 259 | 66.0 | 66.5 | 561 |
Net sales | 338 | 268 | 26.3 | 26.8 | 536 |
Order book | 225 | 100 | 124.2 | 124.9 | 134 |
Operating profit (EBITDA) | 57 | 36 | 56.5 | 81 | |
as % of net sales | 16.8% | 13.6% | 15.1% | ||
Operating profit (EBIT) | 46 | 25 | 80.3 | 59 | |
as % of net sales | 13.5% | 9.5% | 11.0% | ||
Number of employees at closing date2) | 2'689 | 2'278 | 18.0 | 2'537 | |
- Adjusted for currency effects
- 2'691 employees (FTEs), of whom 2 on short-time work (June 2020: 2'558 employees, of whom 280 on short-time work)
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.
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Bucher Emhart Glass
January - June | Change in | Full year | |||
CHF million | 2021 | 2020 | % | %1) | 2020 |
Order intake | 235 | 134 | 74.8 | 70.6 | 317 |
Net sales | 172 | 179 | -3.9 | -6.2 | 421 |
Order book | 221 | 214 | 3.2 | 0.8 | 155 |
Operating 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 | |
- 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-formingmachinery 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.
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Bucher Industries AG published this content on 29 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2021 04:06:00 UTC.