Biesse Group reports 1Q15 revenue increased 23.1% to Euro 112.8 million, EBITDA up 57.4% to Euro 11.6 million

Jul 9, 2015. /Lesprom Network/. Biesse Group reported 1Q15 revenue increased 23.1% to Euro 112.8 million, EBITDA up 57.4% to Euro 11.6 million, EBITDA margin 10.3% comparing to 8.1% in 1Q14.

According to management report, at the end of March 2015, the order intake increased by 40% overall compared to the same period in 2014. This positive trend underlay the increase both in sales and finished and semi-finished product inventories.

According to the management report, regardless of the slight business slowdown in late 2014, the latest surveys continue to show robust global growth in early 2015.  The world Purchasing Managers’ Index,  (PMI) rose again in March, marking sustained expansion of global GDP. On a quarterly basis, there was a slight rise in the first quarter 2015 compared to the previous period, returning to its long-term average.

Trends in developed economies were uneven over the first quarter, with a rise in the United States and the United Kingdom and a drop in Japan. In emerging countries PMI indices grew further in India and recovered in Brazil, remaining stable in China with a drop in Russia.

Recently global trade showed some weakening. In terms of volumes, growth in global import of goods barely reached 0.2% in January on the three-month moving average over the previous quarter and down compared to the 1.4% in December. This loss of momentum can be linked to a drop in import volumes in emerging markets, specifically in China, in part due to the Chinese New Year celebration. The pace of the growth of imports in developed economies has nevertheless continued to show general improvement, whilst the world PMI for new orders from abroad has remained stable in the first quarter of 2015, indicating constant expansion of world trade. Low energy prices have affected overall inflation internationally. Twelve-month inflation in OECD countries remained modest in February, at 0.6 percent, with the energy component continuing in its negative trend. The rate net of energy and food has dropped only slightly, to 1.7% while in the main non-OECD countries consumer price inflation rose in February and March. The increase was slight in China, in the wake of food price increases, and greater in Brazil and Russia. Trends in these latter two countries may be linked to growth in the prices of regulated goods and the impact of the depreciation of the rouble and the food embargo, respectively.

In the first quarter of 2015, the machine tools order index, prepared by the Business Culture and Research Centre of UCIMU-SISTEMI PER PRODURRE, recorded a 2.2% increase on the prior-year period. Therefore, the positive trend registered by the machine tools order index from Italian manufacturers has extended to six consecutive quarters; even in this first quarter, as occurred throughout 2014, they achieved the best performance on the domestic market. The domestic order index improved further, up by 15.4% compared to the first quarter of 2014, while the foreign order book was substantially unchanged (-1%) on the prior-year period.

Luigi Galdabini, chairman of UCIMU – SISTEMI PER PRODURRE, stated, “2015 has started on a positive note for Italian manufacturers, who, though keeping faith with their traditional attitude towards exports, have known how to fully exploit the increase in Italian demand for production systems” Galdabini concluded, “The positive trend in the domestic market index has clearly shown that the recovery of the Italian manufacturing industry has truly begun. It is now necessary to stimulate businesses to better prepare themselves to face the challenges that the near future will offer, beginning with the international trade show scheduled for this coming fall, EMO MILANO 2015, the global machine tools and automation trade fair to be held at the Milan Exposition Centre from 5 to 10 October.”

The Wood Division, the leading segment of the Biesse Group in terms of volumes (Euro 79,95 million in the 1Q15), rose by 22.3% (with a positive impact on the Components Division, which rose by 26.1%); a significant increase was recorded also by the Mechatronics and Tooling Divisions, up by 16.8% and 17.0% respectively.

As regards the geographical breakdown of sales, the first quarter of 2015 featured significant increases in Asia-Pacific (+33.6%) and North America (+33.3%) compared to the same period last year. Western Europe confirms its position as the Biesse Group’s core market, although its share of total revenue slightly decreased compared to the same period last year (from 41% to 40%). Finally, note should be taken of the increase in the Rest of the World (+53.9% year-on-year).

According to the company, the total value of industrial woodworking machinery in 2014 was Euro 2.3 billion. The biggest players in the market are Homag (53%), SCM (28%), Biesse (13%), rest of the market (6%).