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HUBER+SUHNER: lower business volume overall in a challenging environment – net sales growth in Transportation segment and strategic growth initiatives

HUBER+SUHNER AG / Key word(s): Incoming Orders
HUBER+SUHNER: lower business volume overall in a challenging environment – net sales growth in Transportation segment and strategic growth initiatives

23-Jan-2024 / 06:45 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.


Ad hoc announcement pursuant to Art. 53 LR - 23.01.2024

Business volume stabilises in fourth quarter despite seasonal effects – significant proportion of the shortfall in sales attributable to currency effects

Order intake and net sales 2023 (unaudited)

In CHF million

2023
 

2022
 

Change
in %

Order intake Group

821.4

975.4

(15.8)

Industry segment

258.1

310.5

(16.9)

Communication segment

283.4

380.6

(25.6)

Transportation segment

279.9

284.4

(1.6)

Net sales Group

851.1

954.6

(10.8)

Industry segment

285.3

298.0

(4.3)

Communication segment

280.3

385.9

(27.4)

Transportation segment

285.5

270.6

5.5

 

Following a strong first quarter, HUBER+SUHNER saw a marked slowdown in most target markets in the 2023 financial year. Over the course of the second half of the year, business volume stabilised at a lower level.

The decline in both order intake and net sales compared to the very strong previous year can be attributed to three main factors: the weak North American market due to declining 5G rollouts, the general trend of customers reducing high inventory levels, which was observed in many markets, and a significant strengthening of the Swiss franc. Despite the lower net sales in the reporting year and the challenging environment, some business areas, most notably the Transportation segment and the five strategic growth initiatives as a whole, did report positive development.

Order intake for 2023 amounted to CHF 821.4 million, which was 15.8 % below the prior-year value, while net sales for the year declined by 10.8 % to CHF 851.1 million. Adjusted for currency, copper price and portfolio effects, the decline in sales compared to the previous year was 6.3 %.

In the Industry segment, the continued depletion of inventories at customers over the entire reporting year delayed the awarding of new orders, while net organic sales were roughly on a par with the previous year. The aerospace and defense growth initiative reported double-digit percentage growth in both order intake and net sales, whereas the other subsegments fell short of their prior-year levels. The high-power charging subsegment, which had experienced impressive growth in recent years, was lacking both momentum in the important US market resulting from regulatory uncertainties and clarity regarding charging standards. Towards the end of the year, solutions began to emerge for both of these factors, allowing more planning certainty to return to this growth market.

A much weaker communications market resulted in significantly lower volumes around the world, which impacted the entire industry. For the communications business of HUBER+SUHNER, the combination of declining 5G rollouts in North America and high inventories throughout the supply chain resulted in a sharp decline in demand, especially in the second and third quarters. Towards the end of the reporting year, however, the Communication segment successfully secured new mobile communication rollouts in Asia as well as AI projects in the data center growth initiative. Overall, the book-to-bill rate by the end of the year was again slightly above 1 thanks to a significant increase in orders in the fourth quarter.

The Transportation segment closed the year with growth in net sales, and order intake at almost the same level as in the previous year. This growth was attributable to both the automotive and railway subsegments. In addition to strong demand for high-voltage cable systems for commercial vehicles, demand for solutions in the two growth initiatives of advanced driver assistance system (ADAS) and rail communications was also positive.

The detailed business results will be presented at the media and analysts’ conference on 5 March 2024.

This media release can also be found under https://www.hubersuhner.com/en/company/media/news

The definition of Alternative Performance Measures can be found under https://www.hubersuhner.com/en/company/investors/publications

 

This media release is also available in German. The German version is binding.

 

Further calendar dates   5 March 2024 Annual Report 2023, Media and analysts’ conference on fiscal year 2023 27 March 2024 Annual General Meeting (Rapperswil SG) 20 August 2024 Half-year results 2024, Media and analysts’ webcast 22 October 2024 Order intake and net sales (9 months) 23 January 2025 Order intake and net sales (12 months)

 

HUBER+SUHNER AG
Patrick G. Köppe
Head Corporate Communications
Tumbelenstrasse 20
8330 Pfäffikon ZH
Switzerland

+41 44 952 25 60
pressoffice@hubersuhner.com
hubersuhner.com



End of Inside Information
Language:English
Company:HUBER+SUHNER AG
Tumbelenstrasse 20
8330 Pfäffikon ZH
Switzerland
Internet:www.hubersuhner.com
ISIN:CH0030380734
Valor:3038073
Listed:SIX Swiss Exchange
EQS News ID:1820505

 
End of AnnouncementEQS News Service

1820505  23-Jan-2024 CET/CEST

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