Challenging market developments lead to decline in sales at Feintool in Europe
17 Juli 2024 - 6:30AM
UK Regulatory
Challenging market developments lead to decline in sales at
Feintool in Europe
This is an ad hoc announcement pursuant to Article 53 of the
Listing Rules (LR) of the SIX Exchange Regulation AG
As a leading supplier of precision parts for the
automotive and industrial sectors, the Feintool Group faces a
challenging market environment. Electric vehicle sales in Europe
have developed slower than generally expected. Due to political
uncertainties, a strained economic situation, and existing
overcapacities, automotive manufacturers have postponed, canceled,
or significantly reduced the volume of selected
programs.
Entering 2024, Feintool faced strong headwinds, recording a
significant decline in sales and earnings in the first half of the
year compared to the same period in 2023. This decline is
attributed to the aforementioned uncertainties in the European
automotive market and a persistently tense economic situation in
the industrial sector. In Asia and the USA, however, business
performance is strong and significantly higher than in the same
period last year. To address the volatile market conditions in
Europe, Feintool has initiated comprehensive cost-reduction
measures and is reviewing its production capacity.
Overall, Feintool Group's sales for the first six months are
down 13.3% (currency-adjusted 10.8%) compared to the first half of
2023. The order book was adjusted based on automotive
manufacturers' revised plans for the production of electric
vehicles in Europe and reduced from CHF 5.9 billion at the start of
2024 to approximately CHF 5.7 billion. Feintool does not expect any
significant improvements in market conditions for the second half
of 2024. Visibility remains low, therefore no reliable forecasts
can be made. Consequently, Feintool’s guidance for the 2024 fiscal
year has been suspended.
Cost-reductions in Europe include the previously announced
intended relocation of the high-volume production of fineblanked
parts from Lyss (Switzerland) to the Most (Czech Republic) by the
end of 2025. The corresponding consultation process is about to be
finalized. Additional measures are under review throughout the
group to further reduce the cost base and sustainably increase
profitability.
With the recent strengthening of its presence in Asia and the
USA, which includes the expansion of the plants in Taicang (China),
Nashville (USA), and the new plant in Pune (India) in 2025,
Feintool stands to benefit from the positive outlook in these
regions. With its electrolamination stamping, fineblanking and
forming technologies, Feintool is excellently positioned to
leverage the megatrends of generating, storing and using green
energy.
The full half-year report will be published on August 21,
2024.
About Feintool
Feintool is an international technology and market leader in
electrolamination stamping, fineblanking, and forming. We
manufacture high-quality precision parts in large volumes
from steel. We supply the automotive industry, energy
infrastructure equipment providers, and all manner of high-end
industrial manufacturers. Feintool's products perfectly complement
the megatrends for green energy generation, storage, and usage.
Our core technologies deliver measurable cost-efficiency,
consistent quality, and improved productivity. Feintool
constantly expands the horizons of its production methods and
develops intelligent solutions, innovative tools, and
state-of-the-art manufacturing processes in line with customer
needs.
Founded in 1959 and headquartered in Switzerland, the company
has 17 production sites, 3,200 employees and over 100
vocational trainees in Europe, the USA, China, Japan and – as of
2025 – India. In 2023, turnover amounted to 848 million Swiss
francs. Feintool is publicly listed and majority-owned by the
Artemis Group.
Feintool International Holding AG
Industriering 8
3250 Lyss
Switzerland
Media spokesperson
Karin Labhart
Phone +41 32 387 51 57
Mobile +41 79 609 22 02
karin.labhart@feintool.com
www.feintool.com
The press release can be downloaded from the following link:
Press Release (PDF)
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