Saurer AG reported that its sales revenue during the first half of 2019 dropped 17.5% compared to the year before to RMB 3,815.66 million. Profits before taxes fell 32.6% to RMB 380.52 million.
Sales in the Asian region excluding China and India grew by almost 15%, and business in Uzbekistan and Mexico also performed well.
Saurer CEO Clement Woon says, “The first six months of the year proved challenging for the group as we have been seeing the delayed impact of the uncertainties resulting from ongoing trade disputes. Investors are reluctant to invest and since business in our core markets, including China, India and Turkey, are reliant on financing, these factors have had a strong impact on Saurer. Global growth has also slowed down this year.”
Saurer Technologies experienced a drastic decline of 44.3% in the first half to RMB 530.43 million. Factors for the drastic decline included the exceptional boom in demand for glass fiber, carpet yarn and tire cords in 2017 and 2018, and the resulting saturation of the market negatively influenced Saurer’s twisting business in 2019. Sales for the Spinning Solutions segment declined by 10.6% to RMB 3,285.10 million.
The sales revenues in Saurer’s three largest markets dropped: China, RMB 2,171.96 million (down 10.8%); India, RMB 283.47 million (down 19.4%); and Turkey, RMB 112.91 million (down 73.4%). The Asian region (excl. China and India) performed well with a sales growth of 14.9% to RMB 795.52 million, with Uzbekistan being a major contributor to this region. Sales in the Americas (down 32.9% to RMB 236.20 million) were mixed, with Mexico seeing good growth while the U.S. experienced a downturn.