Switzerland-based fastener products distributor Bossard reported its 2020 first quarter financial results on April 8, showing that sales declined modestly year-over-year.
The company’s total Q1 sales of $226 million decreased 5.7 percent year-over-year (YoY), largely due to the stronger Swiss franc (CHF). In local currency, Q1 sales were down 1.8 percent.
In Europe, Bossard’s Q1 sales of $138 million fell by 4.2 percent YoY overall and dipped 0.2 percent in local currency. In the Americas, sales of $56 million fell 7.1 percent overall and declined 4.3 percent locally, while Asia sales of $33 million fell 9.7 percent overall and declined 4.5 percent locally.
Bossard noted that despite the notable decline in Q1 Americas sales, its figure still rose by 5.5 percent sequentially compared to Q4 2019.
“Authorities in this market region have also begun to institute stricter policies to combat the COVID-19 pandemic. These measures are increasingly affecting our customers,” Bossard said. “We will likely face challenging weeks in this market region in the second quarter and possibly beyond.”
Bossard said that the COVID-19 pandemic has appreciably affected business in Europe in recent weeks, and the company is taking a number of actions to maintain operational performance and ensure liquidy. Part of those actions is introducing short-time work in Switzerland, which includes a maximum pay reduction of 4 percent for affected employees. Likewise, Bossard’s board of directors, executive committee and management have committed to a 4 percent salary reduction.
The company’s Cedar Rapids, IA-based subsidiary, Bossard North America, was No. 38 on Industrial Distribution’s 2019 Big 50 List.
“Overall, the Bossard Group is looking at a difficult second quarter,” the company said. “A quick recovery from the COVID-19 pandemic is currently not foreseeable. This is especially true for the European markets. Many countries, including Italy, France, Germany and Switzerland, have drastically reduced their economic activities. This has, and will continue to have, repercussions for Bossard’s business.”