Bystronic AG
Ongoing weak market dynamics lead to declining sales and half-year loss

• Economic uncertainty impacts demand – order intake and sales below previous year
• Lower sales result in loss, despite savings measures
• High start-up costs and unplanned additional expenses associated with the implementation of automation and end-to-end solutions projects further reduced the results
• No significant recovery in the second half of the year

Zurich, July 19, 2024 – The market situation in the first half of 2024 continued to be very strained. Customers in varying end markets were unable to fully utilize their production capacity and operated with restraint in all regions. Although Bystronic proactively reduced costs, the Group could not compensate for the reduction in sales and as a result, realized a loss in the first half of the year.

Demand for complex automation solutions has increased significantly in recent years as productivity gains resulting from process optimization are crucial for customers. In addition, our automation and software offerings have provided access to new customer segments and markets, especially in the US and Australia. Bystronic continues to implement its strategy to position itself as an end-to-end solutions provider of innovative machines, automation and software offerings and service. However, high start-up costs and unplanned additional expenses during implementation of complex automation and end-to-end solutions projects resulted in insufficient profitability of the completed projects. This had a negative impact on earnings, and Bystronic is focusing on optimizing these operational processes for future projects.

Domenico Iacovelli, CEO of Bystronic since July 1, 2024, commented: “As a result of the difficult market environment and intense competition, as well as our development into an end-to-end solutions provider, we face numerous challenges. We are focusing on positioning ourselves closer to our customers, strengthening our portfolio and further optimizing our cost structure. Our innovation capabilities, long-standing partnerships with many customers, and the motivation of our employees together provide a strong foundation to build from.”

Order intake and sales
Due to economic uncertainty, order intake in all regions declined and sank to CHF 304.7 million (-24.5% at constant exchange rates). As a result, sales declined to CHF 330.9 million (-26.3% at constant exchange rates). As many customers were unable to fully utilize their production capacity and had reduced operating times, the service business also developed less dynamically, and sales were slightly below previous year’s level.

Operating result and net result
Due to low sales volumes, the EBIT amounted to -23.0 million (H1 2023: CHF 25.3 million). Although Bystronic has already significantly reduced fixed costs relating to personnel, as well as operating expenses, it could not compensate for the decline in sales. As such, Bystronic continues to implement its cost optimization program and will consider further measures to reduce the cost base. For example, the Group optimized the organizational structure in the EMEA and APAC regions to reduce levels of management and simplify processes. One-time costs related to this program were CHF 2 million in the first half-year. The half-year result was CHF -20.8 million (2023: CHF 19.8 million).

Operating free cash flow
As a result of the loss, operating free cash flow was negative at CHF -26.9 million. (H1 2023: CHF -34.3 million).

Outlook
Market conditions will continue to be challenging, and Bystronic expects no significant recovery in the second half of 2024. As such the Group expects order intake and sales to be below previous year, and accordingly a significant loss in 2024. 

Conference
CEO Domenico Iacovelli and CFO Beat Neukom will present results today, July 19, 2024, at 11:00 am CET in Metropol in Zurich in a teleconference in English. The webcast is available here or under “Presentations” on our website: https://ir.bystronic.com/en/publications/presentations/

To access the teleconference:
Switzerland / Europe: +41 58 310 50 00
United Kingdom: +44 207 107 06 13
United States: +1 631 570 56 13

Appendix
The half-year report 2024 is available for download on our website:
https://ir.bystronic.com/en/publications/financial-reports/

Media release (PDF)

For queries:

Investor Relations
Patrizia Meier                
Mobile +41 79 637 46 33        
patrizia.meier@bystronic.com

Media Relations
Michael Präger
Mobile +41 79 870 01 43
michael.praeger@bystronic.com

About Bystronic
Bystronic (SIX: BYS) is a leading global technology company in the field of sheet metal processing. The focus is on the automation of the complete material and data flow of the cutting and bending process chain. The intelligent networking of laser cutting systems and press brakes based on innovative automation, software, and service solutions is key to achieving the comprehensive digitalization of the sheet metal processing industry. Bystronic’s operational headquarters are located in Niederönz (Switzerland). Additional development and production sites are located in Sulgen (Switzerland), Gotha (Germany), Cazzago San Martino and San Giuliano Milanese (Italy), Tianjin, Shanghai, and Shenzhen (China), and Hoffman Estates (USA). We operate our own sales and service companies in more than 30 countries and are represented by agents in numerous other countries.

Disclaimer
This media release has been published in English and German. Should the English translation differ from the German original, the wording of the German version shall prevail. This media release contains forward-looking statements, which are subject to uncertainty and risks. Actual future results may differ materially from those expressed in or implied by these statements. Some of these uncertainties and risks relate to factors that are beyond Bystronic’s ability to control or predict, such as future market conditions, currency fluctuations, or the behavior of other market participants, suppliers, and transport companies, as well as possible effects of the war in Ukraine and the associated sanctions. Readers are cautioned not to put undue reliance on forward-looking statements, since these relate only to the date of this communication. Bystronic disclaims any intention or obligation to update or revise any forwardlooking statements, whether as a result of new information, future events, or any other factors.

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