HUBER+SUHNER: Lower 2019 sales due to decreased volumes with 4G projects – Industrial market and strategic growth initiatives increase
In the 2019 fiscal year, HUBER+SUHNER was not quite able to match the very strong performance of the previous year. The decline in order intake and net sales compared with the previous year was already originating in the first half of the year and, as already reported, is attributable to two factors: A major 4G project that is coming to an end as expected, and the weaker railway market in China. By contrast, order intake and sales increased in the rest of the business, particularly the strategic growth initiatives.
Net sales in 2019 amounted to CHF 830.6 million (unaudited), down 6.1 % on the previous year. In organic terms, i.e. taking currency, copper price, and portfolio effects into account, the decline was 4.6 %. Order intake of CHF 800.9 million was down 12.5 % on the previous year.
In the communication market, the expiration of the large-scale infrastructure project to upgrade mobile communications networks to the 4G/LTE standard in India led to a significant drop in sales, while the level overall in the other communication submarkets could be maintained.
Due to the lower momentum in the Chinese railway market, sales in the transportation market declined compared with the very strong previous year, whereas the automotive submarket remained virtually unchanged from the previous year.
The industrial market grew across a broad front again and significantly exceeded the already high levels of the previous year.
The detailed business results will be presented at the media and analyst’ conference on 10 March 2020.
The German version is binding.
Alternative Performance Measures
HUBER+SUHNER uses alternative performance measures as guidance parameters for both internal and external reporting to stakeholders. This media release contains the financial figure “organic sales development”, which is not defined under Swiss GAAP FER. HUBER+SUHNER uses the following definition, which may differ from the one other companies use: The organic sales development is calculated by adjusting the reported net sales for the impact of currency effects, copper price effects as well as portfolio effects (acquisitions and disposals). When determining the currency effects, the functional currency that is valid in the respective country is used.
Head Corporate Communications
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Media release (PDF)