Bystronic AG / Key word(s): Quarterly / Interim Statement
Challenging market environment in 1st quarter 2024
15-Apr-2024 / 06:30 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
- Continued cautious investment behavior of customers leads to lower order intake and declining sales, as expected
- Cost optimization program is on track
- Adjustments to regional organizational structures
KPIs CHF million | Q1 2024 | Q1 2023 | in % | in % CER1 | | Order intake | 159.0 | 217.8 | (27.0) | (21.1) | | Net sales | 148.3 | 233.0 | (36.3) | (31.5) | | Order backlog | 279.4 | 396.6 | (29.6) | (27.8) | | 1 at constant exchange rates |
Zurich, April 15, 2024 – The market environment in the first quarter of 2024 continued to be challenging. Demand was weak due to economic uncertainties, and some customers are no longer operating at full capacity. As a result, the order intake of CHF 159 million was below first quarter 2023 (CHF 218 million) and slightly under the level of new orders in the fourth quarter of 2023 (CHF 169 million). In comparison to the fourth quarter 2023, the regions EMEA, APAC and China experienced lower order intake. The region Americas continued to develop positively, with a slightly increased level of orders compared to the previous quarter.
Sales declined by 36.3% (-31.5% at constant exchange rates) over the previous year to CHF 148 million. Currency effects accounted for CHF 11 million of the reduction. In addition, the order backlog is at a lower level than the prior year, and some automation solutions installations have been delayed.
The previously announced cost optimization program is on track. Measures are primarily focused on reducing structural costs, increasing efficiency and streamlining the organizational structure to be well-positioned for the next economic upturn.
As such, Bystronic has made initial adjustments to its regional organizational structure. In the APAC region, the dynamics of individual markets are very different, so in the future, the country organizations will report directly to members of the Extended Executive Committee. By simplifying responsibilities, Bystronic can meet local market needs even better. The Group will report on the progress of the cost optimization program in more detail as part of its half-year reporting.
Outlook
Due to the lower order book compared to last year, the lower-than-expected sales since the beginning of the year, as well as the one-time costs associated with the cost optimization program, Bystronic expects a loss in the first half of the year. The company expects improvement over the course of the year, the timing of which will depend on the development of the currently challenging market environment.
Media release (PDF) About Bystronic
Bystronic (SIX: BYS) is a leading global technology company in the field of sheet metal processing. The focus is on the automation of the complete material and data flow of the cutting and bending process chain. The intelligent networking of laser cutting systems and press brakes based on innovative automation, software, and service solutions is key to achieving the comprehensive digitalization of the sheet metal processing industry. Bystronic’s operational headquarters are located in Niederönz (Switzerland). Additional development and production sites are located in Sulgen (Switzerland), Gotha (Germany), Cazzago San Martino and San Giuliano Milanese (Italy), Tianjin, Shanghai, and Shenzhen (China), and Hoffman Estates (USA). We operate our own sales and service companies in more than 30 countries and are represented by agents in numerous other countries.
Disclaimer
This media release has been published in English and German. Should the English translation differ from the German original, the wording of the German version shall prevail. This media release contains forward-looking statements, which are subject to uncertainty and risks. Actual future results may differ materially from those expressed in or implied by these statements. Some of these uncertainties and risks relate to factors that are beyond Bystronic’s ability to control or predict, such as future market conditions, currency fluctuations, or the behavior of other market participants, suppliers, and transport companies, as well as possible effects of the war in Ukraine and the associated sanctions. Readers are cautioned not to put undue reliance on forward-looking statements, since these relate only to the date of this communication. Bystronic disclaims any intention or obligation to update or revise any forwardlooking statements, whether as a result of new information, future events, or any other factors.
End of Inside Information
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