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Industry market segment grows again with high profitability
With an increase in order intake of 4.7 % to CHF 310.5 million (PY CHF 296.6 million) and in net sales by 8.2 % to CHF 298.0 million (PY CHF 275.4 million), the Industry market segment continued to grow following the particularly dynamic previous year. The aerospace and defense subsegment declined after strong growth in the two previous years. By contrast, the three other subsegments test and measurement, general industrial and energy increased significantly. The latter benefited from a particularly strong demand for high-power charging systems. Thanks to a dynamic second half of the year, the EBIT margin of 21.3 % in this segment even exceeded the previous year’s figure (21.2 %).
“In a favourable market environment, our differentiated and reliable solutions once again enabled us to grow significantly in the Industry segment. This was based upon the development of the infrastructure needed to support high-power charging for electric vehicles, coupled with the increased demand for communication solutions in industrial applications. We successfully countered inflation-related cost increases and were able to maintain the high profitability of the previous year. With regard to the medium- to long-term development of our aerospace and defense business, we expect the increase in defense budgets necessitated by increased geopolitical tensions to encourage further investment in military equipment.”
Reto Bolt, COO Industrysegment
Our solutions for the Industry market
Profitability maintained at a high level – acquisition strengthens competence in diverse submarkets
The test and measurement core market and the two subsegments general industrial and energy all grew at double-digit rates. The latter saw a more than fifty percent increase in net sales of high-power charging systems owing to the accelerated expansion of the high-power charging infrastructure. A growing number of vehicle manufacturers are also launching models that can accept higher charging currents, which requires a corresponding upgrade at the charging points.
The acquisition of Phoenix Dynamics Ltd. (UK) further expanded the product range for customer-specific solutions, such as harnesses and electromechanical assemblies for demanding applications, especially in the aerospace and defense growth initiative.
The very good margins in the Industry segment can be attributed to the fact that, although connectivity is a critical function for most applications, customers often do not focus on the skills required in this area. As a result, HUBER+SUHNER can bring its full spectrum of expertise to bear in its relationship with the customer.
