Datwyler unfazed by market uncertainties in 2019

Altdorf, Switzerland – Datwyler Group has acknowledged that some of its markets “may become more challenging for a time” during 2019.

“Global trade disputes have led to increased uncertainty in the automotive market in particular, the group said in an 8 Feb results announcement.

In the second half of 2018, Datwyler said a strong Swiss franc and higher raw material prices had negatively impacted margins.

“It should be possible, however, to absorb higher raw material prices as early as the first quarter of 2019," CEO Dirk Lambrecht commented.

And, Datwyler “is well prepared for the challenges ahead,” helped by healthcare-product expansions and automotive-sector acquisitions.

For full-year 2019 the group posted targets of CHF1,450-1,500 million (€1,280-1324 million) for revenues and 12-15% for operating profit (EBIT) margins.

Margins held steady at 12.5%, despite costs for projects including start-ups in the US and India, the figures also show.

At Datwyler’s main division Sealing Solutions, EBIT rose 2.6% year-on-year to CHF155.5 million on 2018 net sales 7.0% higher at CHF891.1 million

The gains reflected strong demand for its healthcare products, while the Swiss group “continued to do well” in the automotive market.

Growth slowed in China and the US, but it added “demand for components used in the treatment of exhaust gases from diesel vehicles was up in Europe.”

Datqyler’s Technical Components division increased its revenue by 2.6% to CHF470.5 million, while EBIT improved 32% to CHF14.5 million.

Market expansions

In healthcare, Datwyler is advancing its First Line standard for the production of injectable drug delivery systems.

The standard covers ‘ultra-modern cleanroom technology, automated production cells, camera inspection and cleaning processes.’

Last September, Datwyler started up a First Line plant in Middletown, Delaware – adding to existing units in Belgium and India.

With the expanded network, Datwyler plans to increase its global First Line volumes by 50% between now and 2020.

In automotive, Datwyler recently acquired Brazilian company Bins, with annual sales of CHF20 million.

Bins’s distribution network, it said, will support supply to both carmakers in Brazil and existing customers in South America.

Meanwhile, LSR and plastics injection moulding technology from 2016 acquisition Ott is opening up opportunities in vehicle electrification.

Last year, Datwyler won projects relating to seals for sensors, high-voltage connectors and housing for power distribution equipment.

The group also introduced a ‘lean and clean’ production concept at its Swiss site in 2018.

This, it said, will enhance the manufacture of automotive parts, such as those used for treating exhaust gases from diesel vehicles.

Another 2018 acquisition, Parco is expected to give Datwyler access to US oil & gas, aerospace, water-filtration and pumps & valves markets.

The CHF60-million turnover Californian seals-maker will enhance Datwyler’s O-ring business, acquired with its takeover of Origom in 2015.