Bossard’s sales rise slightly in the first third of 2008
Industrial Distribution staff -- Industrial Distribution, 6/3/2008 6:57:00 AM
Bossard Group posted sales of $194.1 million during the first four months of 2008, up 0.1 percent compared with $193.9 million during the same period last year.But sales rose 6 percent on a local-currency basis, according to the Swiss fasteners and seed parts distributor, which also reported net income of $13.1 million, a 29.7 percent increase over the $10.1 million posted during the first third of 2007.
“In America, we benefited primarily from the good business development of one of our major customers. Conversely, many of our other U.S. customers were affected by the weakening economic development which, in many cases, led to declining demand,” the company said in a statement. “In local currency we achieved a 6.3 percent increase in sales. However, as the U.S. dollar fell against the Swiss franc, sales in Swiss francs were down 8.7 percent compared to the prior year.”
In Europe, where Bossard enjoyed “exceptionally strong sales growth” during 2006 and 2007, growth slowed somewhat to 5.5 percent in Swiss francs and 6.2 percent on a local-currency basis. Sales in Asia rose 4.2 percent in local currency, but varying exchange rates meant a dip of 3.9 percent in Swiss francs.
“Whereas sales growth in China and India tended to be modest, there was above-average sales growth in Korea, Thailand and Malaysia,” the company said in the statement.
Bossard said it expects that high demand for raw materials and the resultant price increases for metals, combined with rising energy and freight costs, will mean price hikes for its customers during the second half of the year.
The company expects sales to increase by 5 percent in local currency for the full year.
Bossard ranked 21st on INDUSTRIAL DISTRIBUTION’s 2008 Big 50 list of distributors, with 2007 sales of $498.7 million.
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