Saurer sales revenue drops 17.5% to ¥3.816 bn in H1 2019

Saurer Technologies experienced a significant decline of 44.3 per cent in the first half of the year. Reasons for this include the exceptional boom in demand for glass fibre, carpet yarn and tire cord in 2017 and 2018 – the resulting saturation in the market has negatively influenced Saurer's twisting business in 2019. Sales declined by 10.6 per cent for the Spinning Solutions segment, said Saurer in a press release.

Sales revenue in Saurer's three largest markets dropped. In China, sales declined to ¥2 171.9 million (-10.8 per cent) while sales in India decreased to ¥283.4 million (-19.4 per cent). In Turkey revenue fell to ¥ 112.9 million (-73.4 per cent). The region Asia excluding China/India performed well with a growth in sales of 14.9 per cent, amounting to ¥795.5 million. Uzbekistan was a major contributor to this result. In the US (-32.9 per cent), performance was mixed, with Mexico seeing good growth while the US experienced a downturn.

"The first six months of the year proved challenging for the group as we are seeing the delayed impact of the uncertainty resulting from the ongoing trade disputes. Investors are reluctant to invest and since business in our core markets, including China, India and Turkey, are reliant on financing, these factors have had a strong impact on Saurer. Global growth has also slowed down this year, said Clement Woon, chief executive officer of Saurer.

Another factor that influences the textile industry in particular is ITMA. Being the world’s principal textile exhibition, this event has a profound effect on the market as customers delay orders in anticipation of the new products that manufacturers will launch at the exhibition.

At ITMA 2019, Saurer introduced a number of innovations, including its first air-spinning machine. With the addition of a draw frame to its pre-spinning line, the company is moving another step closer to becoming a complete solutions provider for the textile industry. Also supporting this aim is its new extensive range of laboratory equipment.While we received very positive response at the exhibition, we cannot be complacent in the current environment. We will work diligently to ensure that Saurer is positioned optimally once the global market returns to previous levels.”

Saurer comprises the two segments Saurer Spinning Solutions and Saurer Technologies. Saurer Spinning Solutions offers high quality, technologically advanced and customer-specific automation solutions for processing staple fibre from bale to yarn. Saurer Technologies specialises in twisting and embroidery as well as engineered and polymer solutions. (PC)

Fibre2Fashion News Desk – India