Bobst moves forward with Ambition 2020 program

The machinery manufacturer has developed a program, Ambition 2020, to support these strategic growth objectives. Ambition 2020 has the following priorities and focus:

• Increase customer satisfaction, where Bobst will recruit and train technicians to support growth and customer satisfaction initiatives. Effective design to cost, good installation, fast snag list clearance and improved time to market will be the focus to reach its target;
• Expand the group’s presence, with increased market share and profitability through investments to build up an enlarged product portfolio and increased services capabilities, to implement its group strategy in Southeast Asia, Africa and North America and to give its business in China ‘a new impulse’. Bobst is setting up new Competence Centers by technology in 2018 in France and China, and in Italy in 2019;
• Improve business processes, by developing a common business process/IT backbone called Bobst Business Systems (BBS), which is establishing the group business blueprint for processes and applications. Once fully deployed, it will run all local entities across the world in an ‘efficient and harmonized way’, whether they are production sites or local sales and service entities; and
• Digitalization development through Mouvent, and taking a leading role in the fourth emerging printing technology in packaging after offset, flexo and gravure, and increase its offering in connectivity and software.

Bobst stated: ‘We are living in a fast-moving world and the markets are challenging. The packaging and label industries keep good perspectives and will support the growth of Bobst markets in the coming years. We are tailoring our group for the future as we adapt and innovate continuously to keep our place at the top, with the best products and services, while expanding our innovation in digital printing and software offering.’

These proclamations come as Bobst reported a 5.7 percent increase in sales in 2017, with order entries increasing 17 percent and backlog more than 20 percent compared to 2016.

Bobst noted that it started 2017 with a lower machine backlog than the year before and order entries during 2017 have been higher than in the previous year for both of the machinery business units, particularly for sheet-fed. Globally, order entries increased driven by very high activity in Europe. The Americas, Asia and Africa remained stable.

Sales reached CHF 885 million (US$935 million) in the second half of 2017 compared with CHF 643 million (US$679 million) in the first six months of the year, and to CHF 847 million (US$895 million) in the second half of 2016.

Sales of sheet-fed products increased by 4.4 percent to CHF 745 million (US$787 million). This growth was once more driven by a very strong demand for products for the corrugated industry. The demand for products for the folding carton industry remained stable.

Sales of web-fed products increased by 6.9 percent, reaching CHF 330 million (US$349 million) for the year 2017. The growth came mainly from gravure printing and coating equipment. The demand for special machines and complex lines remained at a similarly low level as in 2016.

Sales of services and spare parts increased by 7.1 percent to CHF 453 million (US$478 million).

Bobst stated both machine business units, sheet- and web-fed, enjoy promising order backlogs, with an increasing number of field service technicians allowing it to grow its service offering.

Based on today’s evaluation of the overall business environment and prospects, Bobst expects for 2018 to slightly increase sales and operating result (EBIT), in line with its updated mid- to long-term objectives which are sales of CHF 1.6-1.7 billion (US$1.69-1.79 billion).