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Growth in net sales in Communication market segment, but lower EBIT margin
Following the large jump in the previous year, the Communication market segment recorded a decline in order intake of 9.4 % to CHF 380.6 million (PY CHF 420.0 million). Net sales experienced a double-digit increase of 13.1 % to CHF 385.9 million (PY CHF 341.1 million). The two subsegments data center and mobile network developed particularly strongly, the latter as a result of the significant investments made in 5G infrastructure. Business volume with communication equipment manufacturers continued the downward trend of previous years. The decline in the EBIT margin to 8.9 % (PY 12.2 %) was mainly attributable to a change in the business mix with major customers within the mobile network subsegment.
“In 2022, we again achieved double-digit growth in net sales. This development was once again driven by the exponential growth in data traffic, which required significant investments in communication networks and data centers. In the future, communication network operators will turn their focus to the flexibility and cost efficiency of their infrastructures. Our innovative solutions for optical connection, transport and circuit technologies support our customers in building a future-proof communication infrastructure that ultimately forms the backbone for a fully functional society.”
Jürgen Walter, COO Communication segment
Our solutions for the Communication market
Expansion of mobile infrastructure drives growth in net sales – North American market flattens out
The high order backlog from the previous year, coupled with the expansion of the 5G mobile infrastructure in North America, enabled a significant increase in net sales in the reporting year. However, the momentum in this region slowed in the second half of the year as expected. This was offset by a fresh impetus from the 5G market in Asia.
The data center growth initiative showed a significant overall increase, despite isolated project delays due to the uncertain power supply situation in Europe. The further expansion of the fixed network infrastructure and the associated need for additional transmission capacities in the fiber optic network also offered opportunities. HUBER+SUHNER provides solutions that address the lack of bandwidth in the fiber optic network either through the use of additional optical fibers or wavelength multiplexer products for existing fibers.
