Datwyler posts strong growth in global market segments
Following the changes to its portfolio in the previous year, the Datwyler Group accelerated growth in 2013 thanks to acquisitions. Unaudited net revenue grew 16.5% to CHF 1,382.0 million (previous year: CHF 1,185.9 million). The companies acquired in the second half of 2012 - Nedis, Zhonding Sealtech and Hankook Sealtech - contributed CHF 150.0 million to this growth. The positive exchange rate effects came to CHF 15.6 million. Adjusted for the effects of acquisitions and exchange rates, the Datwyler Group achieved organic growth of 2.6% with its continuing operations. All comparisons with the prior-year period refer to the continuing operations without the Cabling Solutions division.
"Despite the difficult market environment in the European-focussed distribution business, Datwyler has been able to accelerate growth through acquisitions. The merger of the Pharma Packaging and Sealing Technologies divisions has proved worthwhile and has stimulated organic growth in our global market segments ", said CEO Paul Hälg.
Difficult market environment for Technical Components division
The Technical Components division focuses on Europe and again had to contend with an extremely difficult market environment in 2013. Thanks to the first full consolidation of Nedis, net revenue grew 11.0% to CHF 711.1 million (previous year: CHF 640.4 million). Adjusted for acquisitions and exchange rates, the Datwyler distribution companies saw net revenue fall by 3.3% compared with the prior-year period. Only the Reichelt brand, with its promise of "professional quality at discount prices", increased net revenue and gained market share. The division's result must be viewed in the context of the stagnant electronics market and dwindling demand for consumer electronics in Europe. With values below 50, the Purchasing Managers' Indices also indicated an industry cycle slowdown in most European countries in the first half of the year. The slight recovery in demand in the fourth quarter suggests that the worst of the downturn is over.
Brisk demand in Sealing Solutions division thanks to global focus
The new Sealing Solutions division created in November 2012 reported a positive first business year. Due to its global focus, it enjoyed brisk demand in all market segments and generated net revenue growth of 22.6% to CHF 672.1 million (previous year: CHF 548.4 million). The companies acquired in the second half of 2012, Zhongding Sealtech and Hankook Sealtech, significantly boosted growth. Adjusted for acquisitions and exchange rates, the new Sealing Solutions division generated organic growth of 9.1%. In both the Pharma and Automotive market segments, Datwyler again considerably outperformed market growth and gained additional market shares. In the Civil Engineering market segment, the good global market position in tunnelling gaskets compensated for the stagnant civil engineering market in Europe. In the Packaging market segment, the Nespresso order progressed well and volumes have continued to increase as planned.
Dätwyler Holding AG
The Datwyler Group is a focused industrial supplier with leading positions in global and regional market segments. With its technological leadership and customised solutions, the Group delivers added value to customers in the markets served. Datwyler concentrates on markets that offer opportunities to create more value and sustain profitable growth. The Technical Components Division is one of Europe's foremost high-service distributors of IT, electronic and engineering components and accessories. The Sealing Solutions Division is a leading supplier of customised sealing solutions to global market segments, such as the automotive, pharmaceutical and civil engineering industries etc. With a total of more than 50 operating companies, sales in over 100 countries and some 7,000 employees, the Datwyler Group generates annual revenue of some CHF 1,400 million. The Group has been listed on the SIX Swiss Exchange since 1986 (security number 3048677).