Feintool's Half-Year Results Highlight Market Challenges
Feintool's Half-Year Results Highlight Market Challenges
Feintool generated sales of CHF 390.1 million and an operating result (EBIT) of CHF 0.2 million in the first half of 2024. The currently very demanding market environment in Europe is leading to low visibility, which is why Feintool has been suspending its guidance for 2024. The company is reacting with the ‘Level-up 2026!’ efficiency and growth program.
Performance Across Different Regions
As a leading supplier of high precision parts for the automotive and industrial sectors, the Feintool Group's performance in its different target markets varied from region to region in the first half of 2024.
Feintool recorded strong results in Asia and the United States: Sales in these regions were significantly higher than in the prior-year period, increasing by 11% and 16% respectively. In Europe, business with parts for combustion engines was in line with expectations overall.
Challenges in Electrolamination Stamping
However, the Group faced major challenges in its electrolamination stamping business in Europe due to various factors. Political uncertainties regarding electromobility, an economic slowdown, inflationary pressures, and high energy prices impacted performance. These negative effects led to a sharp decline in the sale of electric vehicles in some markets, and the industrial business for electric motors saw an unexpected reduction in sales.
Strategic Responses to Market Conditions
In view of these challenges and the unfavorable underlying conditions, Feintool has responded with cost reductions and a restructuring program that includes the relocation of large-volume production from Lyss to other Feintool sites, mainly to the Czech site in Most. The company is also developing a concept to expand its expertise and enhance innovation and competitiveness.
Expansion and Investment in Key Regions
Feintool continued its success story in Asia in the first half of 2024. As a significant supplier of high-precision parts in Asian automotive production, the company aims to consolidate its strategic position and continue growing in the region. Feintool is expanding into India, with plans for operations to start in the second half of 2025.
In the USA, Feintool is benefiting from investments in the Nashville site, enhancing its strong market position in fineblanking and forming.
Outlook for the Future
There is a global need to reduce CO2 emissions and operate in a climate-neutral manner in the future. The transformation in the automotive industry is expected to progress accordingly, with Feintool developing technologies for electric and hydrogen mobility. Feintool is well on track for long-term success, with the order book expecting a life cycle volume of CHF 5.7 billion.
Company Overview
Feintool is an international technology and market leader in electrolamination stamping, fineblanking, and forming. Founded in 1959 and headquartered in Switzerland, the company has 18 production sites across various continents, employing 3,200 individuals and 85 vocational trainees. Feintool is publicly listed and majority-owned by the Artemis Group.
Frequently Asked Questions
What were Feintool's total sales in the first half of 2024?
Feintool generated sales of CHF 390.1 million in the first half of 2024.
What challenges did Feintool face in the European market?
Feintool faced challenges such as political uncertainties regarding electromobility, economic slowdown, inflationary pressures, and high energy prices.
What is the ‘Level-up 2026!’ program?
‘Level-up 2026!’ is Feintool's efficiency and growth program aimed at improving profitability and addressing market challenges.
Where is Feintool expanding its operations?
Feintool is expanding into India, with plans for operations expected to commence in the second half of 2025.
What types of technologies does Feintool develop?
Feintool develops technologies for electric and hydrogen mobility, which places it among the largest suppliers of components for electric vehicles.
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