HUBER+SUHNER remained on its growth path also in the third quarter. Order intake of CHF 757.0 million after nine months was 2 % above the previous year, net sales of CHF 732.7 million were up 14 %. Organically, i.e. adjusted for currency and copper effects, sales growth was even at 15 %. The continued positive development was broadly based, both by main markets and geographically, with sales growth in all three world regions.
Industry segment continues positive development
In the Industry market segment, the subsegments developed positively on a broad basis in the third quarter. The strongest sales growth came from the energy subsegment with the delivery of fast charging systems for the expansion of the charging infrastructure. Compared to the prior-year period, the aerospace and defense subsegment was able to slightly reduce the shortfall from the first half of the year. Overall, the Industry segment saw a significant improvement in both order intake and net sales after nine months compared to the same period last year.
Communication segment maintains high sales growth
The Communication market segment continued to show strong momentum in the last three months. As in the first half of the year, business with cell site solutions as part of 5G rollouts proved to be the growth engine, while growth in the data center market slowed down. Overall, net sales in the Communication segment after nine months were up strongly compared to the previous year. Order intake declined slightly.
Transportation segment with growth in both subsegments
In the Transportation market segment, the positive development in the automotive subsegment continued in the third quarter. In the same period, the railway subsegment remained behind the previous year's quarter, although after nine months there was still a growth in turnover compared to the previous year. In the third quarter and for the first time after the interruption due to the pandemic, important leading trade fairs for the Transportation segment were held again. The attractive future potential of the two growth initiatives rail communications and advanced driver assistance systems was confirmed there. Overall, net sales in the Transportation segment increased significantly after nine months, while order intake declined slightly compared to the same period last year.
Outlook
The third quarter also developed positively for HUBER+SUHNER overall and the company succeeded in defying the challenges in the markets such as material and transport bottlenecks, the strong Swiss franc and high inflation in important economic areas. A new factor is the concern about a secure energy supply for the European locations over the upcoming winter months. Gas plays essentially no role for HUBER+SUHNER, neither for production processes nor for building heating. The company has prepared itself as far as possible for possible electricity shortages that could affect the European sites.
For the full year 2022, HUBER+SUHNER now expects sales growth of at least 8 % (previously 6–8 %) and an unchanged operating profit margin between 10 and 12 %.
