Bobst: Strong activity in packaging market

- Record Drupa performance gives Bobst hope for second half

 

- Results similar to 2011 should be achieved in 2012 at current exchange rates

 

Packaging machinery manufacturer Bobst said there are “very strong signs of activity” in the packaging market, as it reported first half performance in-line with its expectations.

 

Bobst said orders and sales to June 30, 2012, were, as expected, below the levels of the same period in 2011.

 

During the first half of 2012, consolidated sales amounted to CHF532.9 million (€443.7 million), representing a decrease of CHF29.3 million (€24.4 million), or 5.2 percent, compared with the same period in 2011.

 

The reduction in order entries has mainly been influenced by the uncertain economic situation in the Euro currency zone, and to Drupa, which led to a postponement of orders until after the show.

 

The sales decline was largely impacted by a low backlog level at the beginning of the year and a different product mix than in 2011.

 

The low level of sales and under-utilization of the industrial capacity in Switzerland both had a negative impact on Bobst’s 2012 first half results.

 

However, it said Drupa, which took place in May, showed that there are very strong signs of activity in the packaging industry and the event was a “real success for Bobst”, with a record number of handshakes on deals, generating a very busy second half of the year.

 

Other companies have reported similar feedback from Drupa (as reported in Package Print Worldwide, issue #3 2012 pp. 6-8), such as KBA and Heidelberg.

 

Full-year estimated sales are expected to exceed CHF1.2 billion, and results similar to the year 2011 should be achieved in 2012 at current exchange rates.

 

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