Buhler Technology Group Fiscal 2008: high operating performance

In fiscal 2008, the Buhler Technology Group increased its sales (turnover) by about 7% to CHF 1893 million, and with an EBIT margin of 8.4% achieved an excellent operating result. Due to the negative financial result, the Group’s overall result declined by 22% from a year ago, to CHF 101 million. Order bookings increased by approximately 3% to CHF 1891 million (previous year: CHF 1838 million). The backlog of orders as of the end of 2008, which rose by 9% to CHF 948 million, and the existing portfolio together form a strong foundation for fiscal 2009. However, in individual business units, volumes are expected to be lower than a year before.

In the year under review, the business units providing systems and technologies for processing basic foods and grain developed beyond expectations and reached record values. In the various nonfood units, business developed along different lines. Demand for solutions in Die Casting and Grinding &Dispersion dropped sharply as a result of the slump in the automotive and electronics industries. But overall, this was balanced by growth in the other units. The fourth quarter was weaker throughout than the first nine months. The high volatility of the U.S. dollar in the past year had a significant impact on sales revenues: Adjusted for currencies, the Group’s sales would have been some CHF 88 million or 11.7% higher than in the previous year. Without the acquisition of the Barth and Aeroglide companies, revenues would have increased by 6.4% adjusted for currencies. 

The high-margin Customer Service business was once again very successful, growing by a total of 12%. With the exception of Die Casting, all the divisions substantially expanded their service business. Today, customer services account for over 20% of Group sales.

In addition to the diversified portfolios of the food and nonfood units, the Group’s broad geographical spread once again proved to be a major strategic advantage in the past year. In Western Europe, sales rose by more than 9%;in Eastern Europe, the intense expansion efforts led to growth of 7%. Sales developed in a highly positive manner also in Central and South America and in Africa. Business in China soared by an encouraging 35% and in India by 19%. In these Asian markets, Buhler is increasingly acting as a provider of locally developed solutions and products. In North America, business remained at roughly the level of a year ago. In the Middle East, sales revenues slipped by 33%, due to a number of missing large-scale projects in Saudi-Arabia. Project postponements were also the reason for the decline in business in Southeast Asia.