The Bossard Group reported third quarter sales of CHF 194.6 million, up 12.4% on the same quarter 2016. Year to date sales grew 14.1% to CHF 589.7 million.
Accelerated growth was particularly pronounced in Europe, where sales rose 12.5% in Q3, bringing nine-month year-on-year sales to CHF 334.6 million, a 9.1% increase on same period 2016. Bossard said its third quarter performance “confirms the satisfying demand trend, which is clearly on the upswing since the second half of 2016.” It also sees the performance reflecting “its targeted acquisition policy, which has systematically expanded and strengthened its market position in Europe.”
Bossard's American business posted an 11.1% increase in sales to CHF52.0 million, which the Group says was in no small part due to the acquisition of Arnold Industries. Nine-month American sales were CHF 166.3 million, up 24.8% on same period 2016. It notes that the base effect of the Arnold Industries acquisition and strong 2016 third quarter sales to the US electric vehicle manufacturer mean growth momentum in the third quarter this year was not as strong as in the first half 2017. However, Bossard expects to benefit from the launch of a new electric car model and has seen a positive performance from its second largest US customer, in the agricultural technology sector.
Third quarter Asian sales grew 13.8% to CHF31.3 million, where Bossard reports it has made significant progress, gaining market share. Nine-month sales were up 15.3% to CHF 88.8 million. Bossard says investments made in previous years to expand capacities are paying off, with sales growing in the double-digit percentage range in nearly all countries.
Bossard said the performance of the Group bodes well for the fourth quarter 2017. CEO David Dean said: “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.”
“This confidence stems from the continued good order flow that many of our 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, we anticipate overall sales to total CHF 780 million, compared to last year’s CHF 695 million."
Having held senior management roles in leading automotive and fastener businesses, Phil joined Fastener + Fixing Magazine as editor in 2002. Convinced there is no substitute for ‘being there’, over 15 years of visits and interviews around the world means he has accumulated an extraordinary knowledge and perspective of the global fastener industry, reflected in his incisive and thought provoking reporting.