Market segments - Communication

Leap in volume in Communication market segment, EBIT margin improved into double digits

The Communication market segment recorded a big jump in order intake of 46.6 % to CHF 420.0 million, attributable to the accelerated expansion of both 5G mobile network and fixed network infrastructure. The data center growth initiative also contributed considerably to the increase. Net sales rose by 18 % to CHF 341.1 million in the reporting year, resulting in a significant increase in the order backlog. The market segment also posted a markedly improved EBIT margin of 12.2 % (PY 5.3 %).

“In light of the fact that communication networks represent the backbone of a functioning society, the Communication segment achieved strong profitable growth despite the challenges presented by the pandemic. Rollouts of the 5G mobile communications infrastructure emerged as the most important driver. Sales of solutions for data centers and active fixed network infrastructure components from BKtel, which was acquired in 2019, also increased significantly. The unique optical switch technology from HUBER+SUHNER is making major headway in a wide variety of applications, which demonstrates our innovation leadership.”

Jürgen Walter, COO Communication

Our solutions for the Communication market

Strong growth in mobile infrastructure and access network business – EBIT margin almost seven percentage points higher

The large-scale rollout of the 5G mobile communication network in North America and Europe prompted the sharp increase in volumes in the reporting year. Increased customer investments in the fixed network infrastructure and in the data center growth initiative also contributed to growth.
Investments in communication networks continued to be driven by the continuously rising volume of data as a result of the networking of more and more devices (internet of things) and the transmission and storage of high-resolution image and video content. In addition, these networks must be upgraded to future applications with growing requirements in terms of reliability, transmission speed and latency. Application examples of this include autonomous driving or surgical procedures over long distances.
Worldwide, communication network operators will rely on connectivity solutions from HUBER+SUHNER to respond to these changing communication needs of our society in an efficient and future-oriented manner.

Communication segment

Our solutions for the Communication market

Technologies used in the communication market segment

in % of net sales

15%

Radio Frequency

85%

Fiber Optics

0%

Low Frequency