Latest press release: Belimo Group Semiannual Report 2008

 

The Belimo Group, global leader in the field of electrical actuators for heating, ventilation and air conditioning systems, achieved very positive first-half 2008 sales growth, and the operating income has developed accordingly.

 

Sales rose in the first six months of 2008 by 8.4 percent to CHF 200.1 million. Adjusted for foreign exchange differences, this corresponds to growth of 14.5 percent. The operating margin (EBIT margin) was 15.6 percent in the first half (comparison period 2007: 15.5 percent). The decrease in net income by 12.2 percent down to 22.1 millions is mainly due to weaker foreign exchange rates of the main currencies against Swiss francs. This development led as per balance sheet date, compared to the previous year, to a low valuation of the foreign currency denominated balance sheet items and therefore to a negative financial result.

 

Converted into Swiss francs, the shares of sales for the market regions come to 59 percent for Europe, 34 percent for the Americas and 7 percent for Asia/Pacific. Belimo achieved market share growth in all regions. Growth in Swiss francs was significantly reduced, however, mainly because of the steep fall in the US dollar since the turn of the year. The total foreign exchange effect on sales was around minus CHF 11 million, or 6.1 percentage points. Measured in local currencies, the effective growth was 17.2 percent in Europe, 9.9 percent in the Americas and 18.7 percent in the Asia/Pacific region.

 

The market is continuing its positive trend. The Central and Eastern European countries are showing strong growth, led by Russia, Hungary and the Ukraine. Our subsidiaries in Austria, Italy and Poland made particularly marked progress. Initial successes are now emerging in the Middle East.

Sales in the USA proved very robust, thanks on the one hand to our key accounts, who have been catching up on their project backlogs, and on the other to our additional market presence due to innovations in water applications. We also displayed healthy growth with existing and new OEM customers, particularly in fire protection and smoke extraction applications. Business developments in Canada were similar to those in the USA.

Asia/Pacific
We also succeeded in expanding our business in the Asia/Pacific region. Measured against a base of extraordinary high sales in June 2007, growth is currently somewhat below expectations at 18.7 percent. The number of sales branches has been further expanded.

 

 

 

In local currencies, sales grew by 17.2 percent in Europe, 9.9 percent in the Americas and 18.7 percent in the Asia/Pacific region.

 

Air applications
Miscellaneous new products contribute to our growth. Among them, the smallest Belimo actuator (CM), the "RobustLine" products (actuators with protective casings) and the new super-fast actuators. In addition, particularly actuators for fire protection and smoke extraction are contributing significantly to our growth.

 

Continuing the previous pattern, the growth of actuators for water valves exceeded that for air dampers. This applied to the Americas and the Asia/Pacific region and, in Europe, particularly to Italy and Norway. The valve assortment is being continuously expanded. For example, there is great demand for the control ball valve range launched last fall in Asia/Pacific, which is assembled on site. We are gaining increasing recognition as the market leader in water applications in the Asia/Pacific region.

 

 

Expressed in local currencies, sales of air applications grew by 13.3 percent and sales of water applications were up to 17.0 percent.

 

 

The Board of Directors assumes that the uncertainty in the markets will increase to the end of the year. The low value of the dollar is a challenge, but we have already taken steps to deal with this and are confident of the outcome.

 

Belimo's growth prospects are still intact overall. Although the forecasts for commercial building projects in the USA are tending downwards, demand in the growth regions of Eastern Europe, the Middle East and Asia/Pacific remains consistently high. New product ideas, including responses to the global debate on energy saving and environmental pollution, form a sound basis for Belimo's further growth.