Burckhardt orders climb while sales fall in April – September
By Keefe Borden02 November 2021
Burckhardt Compression saw new orders climb while sales fell in the first six months of its 2021 fiscal year as the world recovered from the economic effects of the coronavirus. New orders jumped 48% to CHF CHF 450.7 million in the first half of its 2021 fiscal year when compared with the same period one year earlier.
Burckhardt’s fiscal year starts in April and runs through March.
The company’s sales fell 10% to CHF 268.5 million, but earnings before interest and taxes (EBIT) rose to CHF 26.3 million, from CHF 26 million one year earlier. As expected, sales did not match the previous half-year levels because of lower order intake during the start of the coronavirus one year earlier, Burckhardt reported.
The company’s EBIT and return on sales rose while net income fell from last year because of higher financial expenses.
Global markets continued to recover from the various lockdowns imposed throughout the world last year. Markets in Asia, particularly China continued to recover, Burckhardt reported.
Burckhardt’s European business also regained momentum, but the U.S. investment climate was still weak, with the exception of hydrogen, which accelerated.
Burckhardt said its global selling costs were higher compared to last year because of increased market activity, especially for hydrogen applications. Burckhardt received a contract to supply compressors to the world’s largest hydrogen liquification plant, the company said.
Looking forward, Burckhardt expects its Systems Division to achieve sales above the level of the first half of the year. Despite the increase in orders, Burckhardt experienced some supply and logistical challenges in the first half of the fiscal year, and Burckhardt said it does not expect those issues to normalize before mid-2022.
Based on expected delivery dates for orders received in 2019 and 2020, Burckhardt expects Group Sales between CHF 620 million and CHF 650 million for the fiscal year as a whole. This forecast assumes there will be no further serious outbreaks of the coronavirus in markets that Burckhardt serves and the global economy continues to recover. The company said it expects FY 2021 EBIT margins to be on par with last year.