Business News
The economic slowdown influences the Bobst Group order bookings
Tuesday 28. October 2008 - For several weeks, due to general economic slowdown, the Bobst Group is facing a decrease in order bookings in its three Business Areas: Folding Carton, Corrugated Board and Flexible Materials.
This trend is observed in all regions of the world. In addition, the exchange rate evolution contributes to the turnover decrease (as of end of September, approximately CHF 50m).
Thus, the target of reaching a turnover before exchange rate influence similar to 2007 (CHF 1743,6m) will not be met. Without additional effect of exchange rates until the end of the year, the 2008 turnover is estimated between CHF 1650m and CHF 1700m.
The profitability of the Group, already foreseen to decrease compared to 2007 (one-time costs and influence of the product mix), will also be influenced by this volume decrease.
The Business Area Flexible Materials will record an operating loss estimated between CHF 13m and CHF 15m, including costs for the integration of the German acquisition made this spring.
The Group expects to begin the year 2009 with a relatively low order backlog.
The Group is preparing to take the necessary measures to adapt to this new situation if it were to persist. At the same time, it continues to drive the various initiatives enabling it to achieve, in the mid- and long-term, its strategic objectives and financial targets.