“Saurer weathered the uncertainty of 2018 well, with sales revenue for the group increasing by almost 6%. Both its segments – Spinning Solutions and Technologies – supported this growth.”
– Mr. Clement Woon, Chief Executive Officer
The group posted sales revenue amounting to RMB 9 220 million, a year-on-year increase of 5.8% (2017: RMB 8 713 million). Saurer’s sales in its biggest market, China, rose by 11.2%. This was despite the uncertainty across the globe in the second half of 2018, which saw this economy growing at its slowest rate in 28 years.
Saurer was well positioned to benefit from economic growth in several South-East Asian countries such as Vietnam and Bangladesh. Despite political uncertainty affecting sales in Turkey, the group’s Spinning Solutions segment grew in Saurer’s third largest market.
Over the past year, the focus was on repositioning the group as a solutions provider. The aim is to move beyond supplying customers with textile machinery and to partner with the clients to help realise their business aspirations.
In line with this strategy, Saurer is positioning itself in closer proximity to customers across the world. This saw a significant reorganisation of the 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 US all posting a revenue increase of around 30%.
The group is also embracing the technological advances brought about by Industry 4.0 as part of its strategy. The major focus areas here include automation and sensor technology as well as data analytics. In 2018, Saurer increased its R&D expenditure by approximately 50% YoY. The 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.
Mr. Clement Woon observes: “As we continue to meet our strategic objectives, strengthening our outside-in approach to meet customer needs, I am confident that we can strengthen our position as a provider of smart fit-for-purpose solutions to our diverse customers in the textile industry. The fact that sales of our pre-spinning technologies have grown by 34% is an indication that we are meeting customer needs with our extended offering. In repositioning ourselves with the aim of deepening our relationships with our clients across the world, we will continue to support our customers’ enterprises as they aim for new heights.”
Revenues by segment
Both Saurer Spinning Solutions and Saurer Technologies performed well over the course of 2018. In China, the Technologies segment showed above-average growth, with sales increasing by +47%. In the US, the segment also expanded at a similar rate (+44%). Spinning Solutions was the driver of revenue in Turkey.
Revenues by region
Despite a year characterised by uncertainty, Saurer grew sales in its biggest market, China, by +11.2%. 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 stand-out 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 US 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.