Bobst expecting 2012 sales decline

Swiss folding carton machinery supplier Bobst achieved 2011 full-year results comparable to 2010, but predicts worsening sales in 2012.
 
In a pre-results announcement, Bobst said consolidated sales for the full-year 2011 totalled CHF1.27 billion (€1.1 billion). This included a CHF76 million (€62.9 million) increase in sales volumes, a CHF33 million (€27.3 million) gain from changes of scope of consolidation (increased by Gordon and reduction of Atlas), but also a CHF119 million (€98.5 million) negative exchange rate impact.
 
Despite the major exchange rate influence, Bobst said it achieved nearly the same level of sales as in 2010, which were recorded at CHF1.28 billion.
 
A geographical breakdown shows that the Asia and Oceania region is growing in influence, now representing 20.9 percent of total sales, up from 19.4 percent in 2010. Despite the strong negative impact of exchange rates on the European and American business, both of these regions also continued to make a healthy contribution. Europe contributed 47.3 percent (48.3 percent in 2010) and Americas 28.3 percent (29.1 percent in 2010) to total sales.
 
The Bobst Group added that its transformation program is being implemented successfully, which is helping to drive a positive trend in profitability. The consolidated net result for 2011 will be close to breakeven and the underlying net result will be positive. The Bobst Group strategy successfully compensated for at least some of the exchange rate impact during the year, it said.
 
Sales of sheet-fed and web-fed products continued to recover from the downturn, despite 2011 exchange rates, reflecting strong market share and competitiveness according to Bobst. Sales of services and spare parts were lower than in the previous year due to the negative exchange rate impact, which offset increases in activity and volume.
 
Sheet-fed sales grew from CHF607 million (€502.4 million) to CHF609 million (€504 million) year-on-year, with web-fed sales growing from CHF304 million (€251.6 million) to CHF310 million (€256.7 million). Services segment sales dropped from CHF364 million (€301 million) to CHF345 million (€285.5 million).
 
Further details will be given during the Bobst Group results announcement on March 28.
 
Bobst added that 2012 started with a lower backlog of orders than at the beginning of 2011, which it said was owing to the impact of exchange rates. At the present level of order intake and exchange rates, the company should achieve sales in the region of CHF1.13-1.23 billion (€935 million to €1 billion) in 2012.
 
The measures launched to accelerate a transformation process are progressing as planned, which Bobst Group said this will help it return to improved profitability.