The Saurer Group increased their sales revenue during January-June 2018 by 14.0% year-on-year to RMB 4,627.09 million. Profits before tax rose 23.8% to RMB 564.39 million with net profits growing 29.1% to RMB 409.82 million.
Following a highly successful 2017, which saw the definition of Saurer’s new corporate strategy, the group is entering a phase of organizational consolidation and slowing growth rates.
Saurer Spinning Solutions grew by 11.1% to RMB 3,674.87 million, the main drivers being pre-spinning and rotor spinning. As part of the group’s strategy to become a one-stop provider of the full bale-to-yarn product line, the pre-spinning segment was integrated into Spinning Solutions in January 2018. This product line experienced a substantial increase in demand, growing by 92%, an indication that Saurer is reaping rewards from this move. As a specialist in the manufacture of rotor spinning machines, the group continues to strengthen its position with regard to this technology, which has grown 26%.
The Saurer Technologies Segment achieved a growth of 31.0% to RMB 952.18 million, as demand for glass twisting machines continues to surge. The entrenchment of electro-mobility is a major contributor to the boom in demand for glass fiber. This material is also used in the manufacture of LCD screens and power circuit boards. Their customers in Asia, particularly China, are working at full capacity to fulfill orders.
Saurer further established itself across six focus markets in Asia, winning a number of important orders during the first half of the year. Its strong presence at major industry events in Bangladesh, India, Indonesia and Vietnam no doubt played a role here. Vietnam (up 145%) and Bangladesh (up 109%), were the best performing countries in the first half of 2018. Uzbekistan, which has been one of Saurer’s major markets over the past five years, has been able to retain high sales volumes. Some customer projects were newly categorized under the China region, resulting in a 20.1% decline for the region ‘Asia (excl. China/India)’ to RMB 692.20 million.
China and Turkey experienced substantial growth rates for the first half of 2018, up 55.4% and 13.0% year-on-year to RMB 2,434.10 million and RMB 424.87 million, respectively.
Taking advantage of favorable economic conditions in the U.S. and Germany, the group has grown 73% and 52% respectively in these markets.
India is still facing challenging market circumstances, down 43.8% to RMB 351.79 million. Factors such as the new Goods and Services Tax, embedded duties, demonetization and high domestic cotton prices continue to have a substantial impact on a number of market players in this economy.