Bobst outlines current and future scenarios

- Economic and political instability to hinder growth in some markets, but AFME, America and Asia give reasons to think positively

 

- Turnover forecast to reach CHF1,400 million by 2015

 

Swiss packaging converting machinery manufacturer Bobst is today (December 5) hosting its annual analysts conference in Zurich, where it will present its latest estimate concerning the results of the year 2012 and provide an outlook for the future.

 

In reviewing 2012, Bobst said the uncertain economic situation in industrialized countries due to the Euro zone’s sovereign debt problems has contributed to a loss in confidence and an uncertain investment environment, while the strength of the Swiss franc and weakening of foreign demand severely harmed profitability for Swiss machinery manufacturers.

 

It said on-going economic and political instability in many countries will negatively influence consumption, and the strong Swiss franc will continue to hinder mid-term profitability.

 

Going forward, Bobst said Europe needs clear direction to support the economy and investment environment, but warned: ‘This region is at risk.’

 

On a positive note, Bobst said the Asian, North American, African and Middle Eastern markets are providing it with reasons to plan ahead.

 

The American market remains active, Bobst said, with a good level of new projects and a willingness to continue to invest to lower the total cost of ownership.

 

Asia is a market Bobst is looking at for growth due to on-going projects. Bobst added that it is also investigating a possible acquisition in Asia.

 

Bobst said converting of flexible packaging and corrugated materials has been strong in recent times, although the market for folding cartons is calmer. This has been driven by packaging consumption remaining strong with continued growth anticipated, although the evolution is different from industry to industry as well by region.

 

Further positivity was reported from the impact of Drupa, the “Olympics of the printing industry” which took place in May this year, and various in-house events organized by Bobst at its facilities across Europe.

 

The rebranding of Bobst group companies under a single brand was also cited as a positive event in 2012, with the group transformation process to continue into 2013 with a second phase.

 

Quoting Smithers Pira figures from 2010, analysts were shown how the various packaging markets will contribute to a 22 percent market growth in the six years to 2016. Consumption of different packaging types will remain largely stable, with all growing, whether rigid plastic, glass or board, to help the overall market achieve a valuation of US$820 million.

 

Bobst outlined the role of packaging in shaping consumer purchasing and consumption habits, adding that it serves the board and flexible plastic, foil and paper markets, which account for half of global packaging sales according to the Smithers Pira figures.

 

Financially, Bobst said 2012 started with a lower order backlog level than a year earlier, but the estimated backlog at the end of 2012 will be comparable to that at the end of 2011. Machine backlog now stands at five months.

 

Consolidated turnover for 2012 is expected to be slightly lower than 2011 at between CHF1,235 million and CHF1,255 million (€1,016-1,033 million), compared to CHF1,270 million (€1,045 million). This is some CHF200 million (€165 million) higher than consolidated turnover in 2009, but CHF400 million (€329 million) lower than 2008, the last Drupa year.

 

Bobst estimates potential group turnover in 2013 could fall in the region of CHF1,200 million to CHF1,260 million. Long-term turnover is targeted at CHF1,300 million to CHF1,400 million by 2015.

 

By business unit, Bobst said its sheet-fed operations will be influenced by strong activity in the corrugated market, going back to 2008 levels, although folding carton demand will remain at a low level for the near future despite the bounce in volumes induced by Drupa.

 

Web-fed operations will be supported by the market operating at a good level outside Europe, although pricing issues will remain due to struggling competitors, with consolidation expected.

 

Services will be boosted by improved parts and logistics processes, and increased customer orientation and technical support.

 

Read more on Bobst here

Read more on press technology here

Read more on finishing and converting equipment here

Read more news from across Europe here