Bobst Reports Higher Sales in 1H 2017

Bobst Group recorded a very good first half-year in 2017. Sales amounted to CHF 643.2 million ($674 million) for the first six months of 2017, an increase of 7.1% compared to the previous year. The operating result (EBIT) increased by CHF 21.8 million ($23 million) to CHF 39.8 million ($41.7 million). The net result reached CHF 27.7 million ($29 million), up from CHF 9.7 million ($9.8 million) in the previous year.
 
Order entries increased by 20% and the order backlog is 5% higher than in the previous year. Mouvent, Bobst’s new start-up company, will become the digital printing competence center and solutions provider of Bobst, focusing on innovation, with the objective to gain new markets in this area.
 
During the first half of 2017, consolidated sales amounted to CHF 643.2 million, representing an increase of CHF 42.8 million, or 7.1%, compared with the same period in 2016. This evolution was mainly driven by an overall good level of activity in all three Business Units and a slow start of Business Unit Web-fed in 2016.
 
The operating result (EBIT) reached CHF 39.8 million compared with CHF 18.0 million for the same period in 2016. The increase in the operating result (EBIT) is mainly due to the positive contribution from higher sales and a very good utilization of industrial capacities.
 
All Business Units improved their operating results (EBIT) with higher sales. The biggest increase comes from Business Unit Sheet-fed, but also from Business Unit Services, which continues to improve its processes. Business Unit Web-fed continues to have a less favorable product mix and high pressure on margins.
 
Business Unit Sheet-fed activity in the first half-year of 2017 was strong and followed the positive trend of 2016, with solid performance in both the corrugated board and in folding carton industries. Total bookings for the first half year of 2017 were 30% better than the same period in 2016. Sales in the first half of the year were 5% above the same period in 2016.
 
Business Unit Web-fed activity in flexible materials remained in line with the previous year, although sales for the first half of 2017 have been slightly higher than last year. Construction work for the new China production site and competence center in Changzhou started in May 2017 and will be completed by year-end. Sales in the first half of the year were 18% above the same period in 2016. This is mainly due to a slow start in 2016.
 
First half-year sales for the Business Unit Services were 5% above the same period in 2016. In European and North American markets the business volume increased, mainly through more contract business such as maintenance programs, machinery inspections and contracts for remote troubleshooting and monitoring.