Bystronic Faces Market Challenges in Q1 2024

Bystronic AG reported a challenging market in the first quarter of 2024 with a significant decline in sales and order intakes. The Swiss-based company saw a 36.3% drop in sales, totaling CHF 148.3 million, compared to CHF 233.0 million in the same period last year. The decrease was partly due to unfavorable currency effects, contributing to a reduced performance by approx. CHF 11 million.

The order intake fell to CHF 159.0 million, marking a 27% reduction from CHF 217.8 million in the first quarter of 2023. The decline in order backlogs was also noticeable, reaching CHF 279.4 million from CHF 396.6 million previously, reflecting a 29.6% decrease. This downturn in orders and sales underscores the economic uncertainties affecting customer investment behaviors.

Despite the downward trend, Bystronic is implementing a cost optimization strategy, focusing on reducing structural costs and enhancing operational efficiency to better position itself for future economic recovery.

Additionally, Bystronic is adjusting its regional organizational structures to improve responsiveness to local market conditions, especially in the APAC region where market dynamics vary significantly. The company anticipates a potential upturn later in the year but expects a temporary loss in the first half due to the lower order book and one-time costs associated with restructuring.