ALTDORF, Switzerland—Despite a "favorable start," Datwyler reported being impacted by a weakening economy and negative external effects in the first half of 2023.
The Swiss polymer group reported a 7.3-percent year-on-year dip in earnings (EBIT) to $69.5 million (CHF 60.5 million) in the first six months, on 11-percent higher sales of $693 million.
Higher sales reflected 5.6-percent organic growth, including a positive pricing effect of 4.7 percent, offsetting a negative 4.5-percent effect from a strong Swiss franc, Datwyler reported July 24.
Earnings margin fell from 13.4 percent to 10.0 percent due to capacity under-utilization at recently expanded plants in the health care business, the company added.
Revenue growth was slowed by an "almost complete loss of 'COVID business' " as well as customers' reducing high stock levels in nearly all sectors, said Datwyler.
Margins were further impacted by energy cost rises in 2023 as well as the "temporary unfavorable development" of the product-mix.