The Bossard Group enjoyed significant growth in the third quarter of 2016. Sales rose year-on-year by 4.8% to CHF 169.7 million even though conditions remained challenging in some markets. Business in the Americas was particularly dynamic (+13.3%) as cooperation with the leading U.S. electric vehicle manufacturer continues to bear fruit. The European and Asian market regions also contributed to the positive developments the company saw in the third quarter. In net terms, the Bossard Group grew sales by 3.0% to CHF 513.3 million in the first nine months of the 2016 fiscal year.
The modest economic growth in Europe continues to shape the development of many industrial enterprises. At the same time, the sales in the third quarter rose by 2.3% to CHF 97.9 million in Europe. This uptrend is carried by major markets such as Germany, France and Denmark. In the first 9 months of the 2016 fiscal year, sales in Europe climbed by 3.7% to CHF 305.6 million. In Switzerland, where the appreciation of the Swiss franc continues to be felt in the industrial sector, demand remained at a low level.
Thriving America business
Bossard's America business is in a sharp upswing even though a major customer remains in a dry spell caused by the economic situation. Nevertheless, in the third quarter sales rose to CHF 44.4 million, a plus of 13.3%. This momentum can be attributed primarily to the company's cooperation with the leading U.S. electric vehicle manufacturer whose production volume is growing significantly.
Sales in the first 9 months rose by 3.5% to CHF 130.8 million. After the first 6 months, sales had still been below the previous year’s level, especially because of a lack of demand from a major customer in the agricultural technology sector.
Continued success in Asian markets
The Asia business is showing dynamic growth as a result of the structural investments made in these markets in previous years and will continue to make. Sales in the third quarter rose by 1.1% to CHF 27.4 million. The major drivers are the markets in India and Taiwan where Bossard recorded double-digit growth. Activities in Malaysia and Singapore also contributed to this positive business development. In China, the most important sales market in this region, Bossard recorded slight growth in the third quarter of 2016 after sales had been below the previous year’s levels in the first two quarters.
Confident outlook for the fourth quarter
The business development seen in several major markets confirm the validity of the strategic decisions made in previous years. It is the company's assumption that demand will continue to be positive both in Europe and Asia in the months to come. It is particularly confident because of the dynamic demand in America where it expects above-average growth in the fourth quarter as a result of significantly higher production volume from the leading U.S. electric vehicle manufacturer. Taking all these factors into account, Bossard expects sales for the 2016 fiscal year to reach around CHF 675 million, up from CHF 656 million in the 2015 fiscal year.