Datwyler “steady” in difficult markets

Altdorf, Switzerland – Amid “challenging conditions”, Datwyler Group maintained organic net revenue in 2014 at the previous year's high level, the Swiss group said in a 23 Jan report on its unaudited results.

The Sealing Solutions division continued to post growth in the second half of the year, though the Technical Components division struggled as before with falling demand.

The sale of the Maagtechnic specialist distribution business, meanwhile, contributed CHF115 million to a 9.4-percent fall in the reported unaudited net revenue - to CHF1,251.9 million (€1274.7 million).

The acquisition of Columbia Engineered Rubber in last October could not offset this decline in what Datwyler as a “transition year”, following strong growth in 2013. Exchange rates also had a negative impact of CHF21.3 million on 2014 sales.

“Although we did not quite reach our own revenue targets, in EBIT margin terms we are assuming that we will exceed the lower limit of the target band we set of 10 percent,” said CEO Paul Hälg.

“On the strategic level, we continued to focus, moving ahead with important integration projects in both divisions, Hälg added. “These projects will further strengthen our competitiveness."

At the group’s Technical Components division struggled due to its orientation towards a difficult European market environment. Reported unaudited net revenue fell 2.8 percent to CHF565.8 million, excluding Maagtechnic.

After a cautious start in 2014, the Sealing Solutions division went on to post growth for the year: unaudited net revenue up by 2.1 percent to CHF686.4 million.

As previously reported, Datwyler is struggling with restrained demand in the healthcare market segment. In particular, factory closures by the US Food and Drug Administration (FDA) at several customers in India significantly dented sales.

Revenue was further impacted by a restructuring in the civil engineering market, according to the report. However, Datwyler said the automotive market had “continued on an upbeat path, while a Nespresso order also continued to progress well.”