Saurer Group, a globally operating group focusing on machinery and components for yarn processing, has recently published its sales revenue growth of the first half (H1) of 2018. It has registered an increase in its revenue both in ‘Spinning Solutions’ and ‘Technologies’ by 14 percent to 4,627 million renminbi (RMB). At the same time, the group has achieved profits before tax of 564 million RMB by+23.8 percent with a net profit margin of 29.1 percent.
Building on the exceptional growth seen in the previous financial year, they continue on their upward trajectory.
According to a press release, the strong financials are reflective of our new strategy. It positions us as an innovative solutions provider with a customer-centric focus that continues to yield strong results across key markets.
Saurer Spinning Solutions grew by 11%, 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 release described.
The Saurer Technologies Segment experienced a growth of 31% 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. Our customers in Asia, particularly in 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 (+145%) and Bangladesh (+109%), were the best performing countries in the first half of 2018.
According to the release, Uzbekistan, which has been one of Saurer’s major markets over the past five years, has been able to retain its high sales volumes. Some customer projects were newly categorized under the China region, resulting in a decline for the region ‘Asia (excl. China/India)’.
China and Turkey experienced a substantial growth rate for the first half of 2018, +55% and +13% respectively year-on-year.
Taking advantage of favorable economic conditions in the US and Germany, the group has grown +73% and +52% respectively in these markets.
India is still facing challenging market circumstances. 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, said the release.