ALTDORF, Switzerland—Datwyler Group has reported growth in both sales and operating profit (EBIT) in the first half of 2019, amid slowing demand in the automotive sector.
In the six months to end of June, sales rose 1.8 percent year-on-year to $720 million, while operating profit grew 0.5 percent to $93 million, Datwyler said in its financial report issued Aug. 13.
These result were achieved in what CEO Dirk Lambrecht described as a "difficult environment," citing a decline in demand within automotive markets.
The trade dispute between the U.S. and China, according to Datwyler, led to a reduction in inventories, particularly in the automotive sector, and a decline in demand.
The company's Sealing Solutions division, meanwhile, continued to develop positively, helped by strong sales of health care components. The division's revenue increased 5.8 percent to $489 million, while operating profit remained flat at $85.4 million.
Here, Datwyler noted that the significant decline in automotive revenue as well as other start-up costs were offset by a double-digit growth in demand for care components from the company's First Line production.
Prices for raw materials remained largely unchanged compared to the previous year.
The group's Technical Components division posted a 5.4 percent decline in revenue at $227 million, while profitability rose 8.6 percent to $7.65 million.
Datwyler expects some challenges in the market to continue in the near future.
"In the automotive market, for example, there is no real prospect of things picking up over the next few months," the company said.
In addition, Datwyler anticipates a significant decline in demand with regards to the online distribution of its electronic components.
Despite the challenges, the Swiss group expects to manage this challenges with its market position, ongoing efficiency-improvement programs and its low-cyclical products.
"Datwyler should achieve revenue growth for the full year," the companuy said, "provided that the market and currency environments don't continue to weaken."