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Bossard Marked Sales and Profit Growth –Record Profitability
The Bossard Group posted a sizable performance increase in the fiscal year 2017: Sales, EBIT and net income all rose to new heights. Sales grew by 13.1 percent to CHF 786.2 million, with all three market regions contributing with double-digit growth rates. EBIT rose by 23.6 percent to CHF 97.0 million, while net income grew no less than 28.4 percent to CHF 80.2 million. CEO David Dean sees these record numbers as confirmation of Bossard’s strategy: “The investments we made in previous years have created a solid foundation for this development across all market regions.”
The Bossard Group recorded accelerated growth especially in Europe, where it boosted sales by 10.8 percent to CHF 444.9 million. The improved economic environment did help fuel demand, but the gain was due mainly to Bossard’s growth strategy. We were able to successfully integrate the acquisitions of the previous years and, at the same time, expand the infrastructure for current activities. The targeted expansion of our range of services also increased our appeal with customers. Especially in Eastern and Southern Europe, we made great strides in the market development in fiscal year 2017.
Business in America continued at a brisk pace, with sales rising by 18.4 percent to CHF 220.3 million. This substantial gain was driven by acquisition-related growth as well as organic growth. Arnold Industries, acquired in September 2016, was consolidated for the first time over the entire fiscal year.
Our established business also lent momentum: Our cooperation with the largest US electric vehicle manufacturer showed gratifying progress and helped boost growth. This customer launched production of a new model in the third quarter of 2017. Our second major customer, a company active in the agricultural technology sector, likewise strengthened growth in America.
The Bossard Group enjoyed dynamic demand for its products and services in Asia as well, where we had invested heavily in new infrastructures in prior years. Sales there rose by 12.8 percent to CHF 121.0 million. The positive effects of our infrastructure expansion were evident especially in China. The markets in Thailand, Malaysia, Taiwan, and Australia also registered double-digit growth rates.
Positive outlook for the current fiscal year
A number of developments give us reason to feel optimistic for fiscal year 2018. The products and services offered by the Bossard Group are meeting with brisk demand in all market regions. We can continue to build on this solid foundation, particularly as our commitment to Industry 4.0 and e-mobility offers additional growth potential.
Our confidence is based on various indicators, among them the purchasing managers’ indices, which in most of our major markets are well above the 50-point level. On the procurement front, increasing lead times and rising raw materials prices are positive signs for our business.
Overall, Bossard approaches fiscal year 2018 with optimism, targeting sales between CHF 840 million and CHF 850 million – a boost predicated on the continued stability of the markets and currency exchange rates.
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