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30th August 2017, Zurich

Gurit reports strategic progress

In Composite Materials, sales to the wind energy market dropped by 3.0% to CHF 69.1 million in the first six months of 2017. Gurit has reported net sales of CHF 175.2 million for the first six months of 2017, a slight decrease over the previous year. Operating profit amounted to CHF 21 million and the operating profit margin reached 12% of net sales for the first half-year 2017.

Gurit made good progress in strategy implementation. The acquisition of PH Windsolutions, the foundation of a balsa wood joint-venture in Indonesia and the integration of the acquired PET business into the company`s Composite Materials business represent the key achievements in the first half-year 2017.

Sales-wise, Gurit says it met mixed market conditions across its target industries which led to a temporary dip in sales. However, the company was able to further increase its operating profitability by 11% year-on-year.

Gurit Composite Materials

The business unit Composite Materials achieved net sales of CHF 129.7 million in the first half of 2017, compared to CHF 136.0 million in the same period last year. This represents a decrease of 1.8% on currency-adjusted basis.

Sales to the wind energy market dropped by 3.0% to CHF 69.1 million in the first six months of 2017. The decline mainly results from a weaker than expected demand situation in India which could not be fully compensated by the amount of newly installed capacity in other global wind energy regions.

Revenues in other material markets (marine, industrial, automotive materials) decreased by 0.4% to CHF 60.6 million in the first half of 2017, mainly due to the continued hesitant order situation in the European and Asian marine leisure markets, as well as the ongoing lack of large builds in the Middle Eastern construction industry due to the end customer credit situation. Sales to the European Aerospace industry showed further growth.

Gurit Composite Components

The business unit Composite Components reported net sales of CHF 9.8 million for the first half-year 2017, compared to CHF 9.4 million in the first six months of 2016. This represents an increase of 14.8% on a currency-adjusted basis.

Gurit Tooling

In Tooling, sales of wind turbine blade moulds and related equipment in the first six months of 2017 came in well and above the company’s estimate at the beginning of the year. Demand from both Chinese and international customers was positive, also with regard to moulds for off-shore wind installations, the manufacturer reports. Revenues increased by 0.5% on a currency-adjusted basis to CHF 35.6 million.

Outlook

Overall, Management confirms to reach a low single-digit revenue growth for the full year 2017 under the assumption that the Indian wind energy market will return to growth in the fourth quarter of the year.

The wind energy industries in Europe and the Americas are anticipated to see a fair amount of newly installed capacity in the second half of 2017. Operating profit margin is expected to reach the upper end of the guided range of 8 to 10% of net sales, including an anticipated non-recurring one-time expense in the range of around 1% of annual operating profitability.

www.gurit.com

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