Market slowdown in line with expectations – adhoc – Börsennachrichten

As expected, demand for Bucher Industries’ products and services declined in the first nine months of 2024. Segments associated with agriculture and Bucher Emhart Glass were particularly affected by the decline. Order intake declined significantly, but the slowdown stabilized from mid-year. Sales were also lower than the previous year’s level. The Bucher Municipal division was able to distinguish itself positively from the general trend, recording encouraging sales growth. Bucher Industries expects for 2024 lower sales and now, due to low capacity utilization, an operating profit margin in the high single-digit range.

group

1) Adjusted for exchange effects
2) Adjusted for exchange and acquisition effects

As expected, demand for Bucher Industries’ products and services declined overall compared to the strong prior year period. The economic slowdown was particularly noticeable in Europe, while North American and Asian markets performed better. Order intake declined in all divisions, with segments associated with agriculture and Bucher Emhart Glass particularly affected by the recession. The agricultural machinery and glass packaging markets were characterized by an excess of stocks in the sales channels. While the other divisions were unable to match the previous year’s sales figures, Bucher Municipal achieved encouraging growth. The order book was in line with the long-term average, with a range of four months. Cost-saving measures already initiated were consistently continued and selectively scaled up across locations.

Kuhn Group

1) Adjusted for exchange effects

Declining demand Lower prices for agricultural products, high interest rates and reduced subsidies continued to make farmers cautious about investment. In Brazil and Europe, harvests were poorer due to weather conditions, while North America expects high yields. The dairy and livestock segments benefited globally from solid milk and very high meat prices. Many dealers suffer from high inventory and were therefore hesitant to place advance orders. This led to a significant decline in order intake, particularly in Brazil and Europe. Kuhn Group order intake declined overall, with hay and forage machinery performing better. The division’s sales fell compared to the year-ago period, with Brazil being a major factor. The order book had a span of four months and was therefore in line with the long-term average. Capacity adjustments have been made in both Brazil and Europe, and Kuhn Group continues to work to optimize its costs.

Outlook for 2024 Kuhn Group expects sales to decline and the operating profit margin to be significantly lower.

Bucher Municipal

1) Adjusted for exchange effects
2) Adjusted for exchange and acquisition effects

Encouraging sales growth Demand for Bucher Municipal remained stable overall, with strong order intake in most markets, particularly towards the end of the reporting period. The truck-mounted sweeper and sewer cleaning vehicle segments benefited from the stable ability to deliver chassis units and strong market positions in key European markets such as the UK, Germany and Denmark. Orders for winter maintenance equipment increased in the first nine months. The business with maintenance services and spare parts also continued to develop positively. Compact sweeper orders were down from the high level recorded in the year-ago period, affected by lower subsidies for electrified vehicles in Europe, among others. The refuse collection vehicle segment in Australia failed to reach the very high level of the previous year. Bucher Municipal’s sales were significantly higher than the previous year’s period. The order book had a scope of six months.

Outlook for 2024 Bucher Municipal expects sales in line with the previous year’s figures. Operating profit margin likely to increase, probably still short of 9% margin target due to expected product mix in 2024.

Bucher Hydraulics

1) Adjusted for exchange effects

Decrease in demand The market for Bucher Hydraulics decreased overall. An economic slowdown was particularly noticeable in Europe, especially in Germany. Encouragingly, however, demand has stabilized in North America. In addition, the recovery in China continued. Overall, order intake at Bucher Hydraulics declined due to strong market exposure in Europe. The weak cycle in the agricultural machinery segment was a major factor, as was the decline in the construction machinery and electrical converter segment. The material handling segment remained more stable. The division’s sales declined. The order book had a scope of three months. The division has continued to rigorously follow the cost saving measures initiated the previous year. In addition, part-time work has been introduced in some places.

Outlook for 2024 Due to market weakness, Bucher Hydraulics expects both sales and operating profit margin to decline.

Bucher Emhart glass

1) Adjusted for exchange effects

Market Weakness Demand for glass forming and inspection machinery weakened and was significantly below the high level of the prior year period. Full stocks of glass containers prompted some manufacturers to close glass melting furnaces, which had a negative impact on the spare parts business. The fall hit Europe and North America particularly hard, also due to rising energy prices, while some smaller emerging markets continued to grow. Order intake at Bucher Emhart Glass decreased significantly compared to the strong period of the previous year. Capacity utilization was good thanks to the high order book. Uncertainties about the evolution of the market led to project delays at specific clients, which had a negative impact on sales. No cancellations were recorded. The order book was reduced but still had a five-month reach. Production planning was adapted to the situation.

Outlook for 2024 Bucher Emhart Glass expects only slightly weaker sales compared to the previous year’s very high sales. As a result, the operating profit margin is expected to be slightly lower than in 2023.

Bucher specials

1) Adjusted for exchange effects

Variable market development Bucher Specials markets presented a mixed picture in the first nine months of 2024. Demand for Bucher Vaslin remained below the level of the previous year, while demand for Bucher Unipektin remained without changes At Bucher Landtechnik, there was a noticeable stabilization of the market at a low level. Order intake at Bucher Automation was significantly below the prior-year period, partly due to slower momentum in markets served by internal customers Bucher Emhart Glass and Bucher Hydraulics. Overall, the division’s order intake was below the level of the prior year period. The division’s sales declined, and Bucher Vaslin in particular failed to match the high level of the prior year period. The order book had a scope of three months.

Outlook for 2024 Bucher Specials anticipates a decline in sales and a significantly lower operating profit margin compared to the prior year period.

Group prospects for 2024

Bucher Industries expects demand to continue to be affected by the volatile environment in the fourth quarter. Although the agricultural machinery market is unlikely to recover, stabilization is expected to continue in other markets. The Group anticipates a decrease in sales in 2024. The optimization measures already started are continuing. Due to low capacity utilization, the operating profit margin is also expected to decline compared to the previous year and be in the high single-digit range. Consequently, it is expected that the Group’s profit for the year will be lower than the high level recorded in the previous year. The Group will continue to maintain its long-term focus and constantly invest in innovations.

The Group has been negotiating for some time the sale of a property not required for the operation, which could be concluded at the end of 2024 or the beginning of 2025. The profit from a sale in the current year would increase the profit margin of exploitation by approximately 1.4. percentage points