Order intake and net sales after nine months

2015 2014 Change as %
in CHF million
Order intake 531.1 613.7 -13
Radio Frequency 148.0 184.4 -20
Fiber Optics 211.3 216.4 -2
Low Frequency 171.7 212.8 -19
Net sales 534.5 560.8 -5
Radio Frequency 157.4 175.3 -10
Fiber Optics 210.5 184.5 14
Low Frequency 166.6 201.1 -17

The business volume of HUBER+SUHNER in the third quarter of 2015 remained stable at the level generated during the first half-year. The strong Swiss franc and the weak development of the transportation market were the most important factors that put pressure on order intake and net sales compared to the previous year. The Fiber Optics division continued to show very positive development and also the in the previous year acquired Cube Optics performed strongly. Overall in the third quarter net sales of CHF 178.4 million (previous year CHF 194 million) were achieved, with an order intake of CHF 174.8 million (previous year CHF 205 million). This development is also reflected in the cumulative results after 9 months: the order intake of CHF 531.1 million represents an unchanged shortfall of 13% compared to the previous year. The net sales of CHF 534.5 million remained 5% lower than in the preceding year. In organic terms, i.e. adjusted for portfolio, currency and copper effects, the decline in net sales also amounted to 5%.

From today’s perspective HUBER+SUHNER anticipates net sales of at least CHF 700 million for the whole year 2015. The EBIT margin is likely to improve in the second half-year. For the full year, the company confirms the EBIT margin target range of 6–7.5% announced for 2015.

Lower business volume in Radio Frequency
Both order intake and net sales experienced a downturn in the Radio Frequency business division during the first 9 months. The drop of 20% and 10% respectively compared with the previous year is mainly attributable to continued restrained business with European and Asiatic communications equipment manufacturers. The industrial high-tech niches, on the other hand, demonstrated stable development compared with the previous year.

Double-digit sales growth in Fiber Optics
Fiber Optics continued its dynamic development. While the cumulative order intake after the third quarter remained slightly below the very strong period in the previous year (-2%), the net sales rose by a pleasing 14%. This growth is due to further upgrading of the mobile communication network to the LTE/4G standard, with India and North America showing a particularly strong development. At the same time the Data Centers and Fiber to the Home market segments also contributed to the growth, and the Cube Optics company acquired in 2014 continued its strong development.

Low Frequency significantly lower than previous year
In Low Frequency the railway market remained sluggish, and various major projects in China and Europe continued to suffer delays. In addition, the currency impact was above average due to the high proportion of net sales in Europe. The cumulative order intake fell accordingly after the first
9 months by 19% compared with the previous year. The net sales reflect the trend recorded during the first semester and were 17% lower than in the previous year. The automotive and industrial market segments showed solid development.