Bossard Group Reports Sustained Strong Growth in Third Quarter

Bossard third quarter sales increased 12.4%, with solid growth seen in all three major markets in which the company operates.

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The Bossard Group continues to enjoy strong growth. It boosted sales in the third quarter of 2017 by 12.4% to CHF 194.6 million, continuing seamlessly from the previous quarters. Solid organic growth in all three market regions contributed to this impressive performance. Overall, sales rose by 14.1% to CHF 589.7 million. Accelerated growth was particularly pronounced in Europe, where sales rose by 12.5% in the third quarter (+9.1% in the first 9 months). In America, Bossard continues to benefit from the cooperation with the largest U.S. 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 U.S. company acquired in September 2016, also helped contribute to the above-average sales increase in America.

Accelerated growth in Europe

Bossard’s third quarter performance confirms the satisfying demand trend, which is clearly on the upswing since the second half of 2016. This applies particularly to the European market region, where a third quarter increase in sales of 12.5% to CHF 111.3 million indicates accelerated growth. For the first 9 months, sales grew by 9.1% to CHF 334.6 million. Last but not least, the latest figures are an expression of Bossard Group’s targeted acquisition policy which has systematically expanded and strengthened its market position in Europe, where all countries contributed to the notable increase in performance, several with growth rates in the double-digits.

New momentum in the America business

In the third quarter, the America business posted an increase in sales of 11.1% to CHF 52.0 million. This was due in no small part to the acquisition of U.S.-based Arnold Industries. When adjusted for the acquisition, sales grew by 4.1%. At the end of September, total sales were CHF 166.3 million, a plus of 24.8% year-to-date. Underpinning the overall positive trend in America is the cooperation with the largest U.S. electric vehicle manufacturer. Growth momentum was not as strong as in the first half of 2017, which is due to the base effect from the acquisition of Arnold Industries and last year’s brisk third quarter sales to the U.S. electric vehicle manufacturer. However, that same U.S. customer launched production of a new car model in the third quarter, from which Bossard can expect to boost its growth over the next several quarters. Its second major customer in America, a company active in the agricultural technology sector, also contributed to the overall positive performance in the third quarter.

Market development efforts in Asia pay off

Bossard made significant progress in Asia as well, gaining additional market share. In net terms, sales grew by 13.8% to CHF 31.3 million in the third quarter. In the first 9 months, the Bossard Group recorded an increase of 15.3% for this market region to a total of CHF 88.8 million. The investments made in previous years to expand capacities in Asia, and hence Bossard’s presence in the region’s major industrial zones, are paying off: Sales grew in the double-digit percentage range in nearly all countries.

Optimistic outlook

The performance of the Bossard Group bodes well for the fourth quarter of 2017, and hence for the entire year. “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,” emphasizes CEO David Dean. This confidence stems from the continued good order flow that many customers report as well as various indicators important to Bossard, such as the Purchasing Managers Index (PMI), which points to continued growth in nearly all the market regions. For fiscal year 2017, Bossard anticipates overall sales to total CHF 780 million, compared to last year’s CHF 695 million.