Saurer Group, one of the strongest manufacturers of spinning technologies, increased their revenues and profitability thanks to their robust performance in 2018. In this period of uncertainty in the market, the group managed to close the year well by increasing sales revenues by almost 6%.
Both segments of the group (Saurer Spinning Solutions and Saurer Technologies) have demonstrated strong performance in supporting this growth. On an annual basis, Spinning Solutions increased its sales by 6.4% and Saurer Technologies by 3.7%. In the Saurer Technologies segment, the Chinese market grew by 47%, above the average, while the US market saw a 44% increase in sales. Spinning Solutions was the driver of revenue in Turkey.
Saurer Group 2018 results are good: Spinning Solutions Segment sales increased in Turkey
Despite the uncertainty in the market in 2018, Saurer increased their sales by 11.2% in China, their largest market. The high demand for twisting machines, spurred by the continued expansion of the glass fibre market is one of the contributing factors. Sales revenue sank in the group’s second-largest market India (-4.8%), which was still feeling the effects of its demonetisation policy and the introduction of the Goods and Services Tax. While overall growth declined in Turkey (-2.6%), the group’s Spinning Solutions segment experienced an uptick in sales in this country.
In the region Asia (excluding China/India), Bangladesh was the standout market with sales expanding by +64.5%. In Vietnam, the group also saw a boost in revenue (+20.4%). In the Americas region, sales revenue in the USA rose by +33.5%. The Europe/Africa/others (excluding Turkey) region posted growth of 9.3% ‒ Germany and Switzerland both saw sales increases of +34.7%, while Spain and Portugal expanded by approximately 30% each.
The figures announced by Group CEO Clement Woon reveal the positive picture of the group’s sales and profitability ratios. In 2018, Saurer increased their revenues by 5.8 percent compared to previous year to 9 billion 220 million RMB (Chinese Yuan). Saurer’s largest market, China sales increased by 11.2% during this period. In the second half of 2018, however, the slowest economic growth of the last 28 years was observed worldwide. “Despite the uncertainty, this growth has taken place,” said Woon, adding that Saurer was well positioned to benefit from economic growth in several Southeast Asian countries such as Vietnam and Bangladesh. Woon said referring to the developments in Turkey; “Despite political uncertainty affecting sales in Turkey, the group’s segment Spinning Solutions grew in Saurer’s third-largest market”.
Saurer was repositioned as solutions provider in 2018
Reminding that last year, the group focused on repositioning itself as a solutions provider, Clement Woon, laid out their aim as to move beyond supplying customers with textile machinery and to partner with clients to help realise their business aspirations. Woon continued as follows; “In line with this strategy, Saurer is positioning itself in closer proximity to customers across the world. This saw a significant reorganisation of our sales and service departments, which has resulted in a positive outcome in the Americas, Europe, Middle East and Africa (AEMEA) region, with Germany, Switzerland, Spain, Portugal and the USA all posting a revenue increase of around 30%”.
Saurer’s strategy also embraces the technological developments of Industry 4.0. Woon disclosed that their major focus areas here include automation and sensor technology as well as data analytics. Woon said that in 2018, Saurer increased their R&D expenditure by approximately 50% YoY; “The group’s new Saurer Technology Centre located in Arbon, Switzerland; supports engineers across the group as they work to integrate smart technology into Saurer’s products. The group’s commitment to Industry 4.0. principles is further highlighted by its plant in Urumqi in Xinjiang Province, China; which came into regular operation in the third quarter of 2018. This modern site is the first to produce both pre-spinning and spinning machines”.
Woon shared his confidence in strengthening their position as a provider of smart fit-for-purpose solutions; to their diverse customers in the textile industry. Indicating that their sales of pre-spinning technologies have grown by 34%; Woon said that this is an indication that they are meeting customer needs with their extended offering. Woon emphasized that in repositioning themselves with the aim of deepening their relationships with their clients across the world; they will continue to support their customers’ enterprises as they aim for new heights.”