OREANDA-NEWS. In the first half-year 2016, the Belimo Group increased its sales by 12.9 percent to CHF 273.9 million, adjusted for currencies by 10.2 percent.

Operating income before interest and taxes (EBIT) for the first half-year 2016 amounted to CHF 46.9 million, which equates to an operating margin of 17.1 percent (comparison period 2015 14.7 percent). Net income amounted to CHF 37.8 million (comparison period 2015 CHF 23.0 million). In the previous year, net income was strained substantially by the appreciation of the Swiss franc.

Europe. Sales in the Europe market region grew by 9.5 percent, or 7.2 percent on a currency-adjusted basis. Poland, Norway, Italy and the United Kingdom made notable contributions to growth. Poland's improvement was the result of good economic developments and the relocation of production facilities by Western European companies. The United Kingdom and Norway mainly owed their growth to the strong OEM business. Germany and the Netherlands also contributed essentially to growth. The low oil price resulted in restrained investment activity in the Middle East, which had a negative impact on business operations in Saudi Arabia. Sales in the Russian market stabilized at a low level.

Solutions using pressure-independent products such as the Belimo Energy ValveTM and the new zone valves ZoneTightTM posted above-average growth. Sales of the new fire damper actuators developed excellently as well.

Americas. Sales in the Americas market region grew by 15.4 percent, or 12.0 percent on a currency-adjusted basis. Sales in the United States and Canada developed well due to continued strength in the new construction sector. In addition, Belimo has benefitted from continued interest to invest in energy saving HVAC system upgrades in existing buildings.

Sales of water applications outpaced those of air applications, primarily driven by pressure-independent product solutions, butterfly valves and characterized control valves. Growth in the OEM customer segment was driven by sales of fire damper actuators.

Asia/Pacific. Sales in the Asia/Pacific market region grew by 19.1 percent, or 16.9 percent on a currency-adjusted basis. Belimo achieved encouraging contributions to growth in India, China and South-East Asia. In India, sales to global OEM customers improved. South Korea has bounced back from the slowdown experienced in the previous year as projects that have been on hold are now in progress. Sales in Australia are behind last year's results.

The main growth factor across the region were water applications, in particular pressure-independent solutions and butterfly valves.

Net sales by region

in CHF 1,000 1st half
2016		 % Growth
 in local
currencies
in %		 1st half
2015		 %
Europe 133,292 49 7.2 121,688 50
Americas 109,262 40 12.0 94,651 39
Asia/Pacific 31,302 11 16.9 26,289 11
Group 273,856 100 10.2 242,628 100

Net sales by application

in CHF 1,000 1st half
2016		 % Growth
 in local
currencies
in %		 1st half
2015		 %
Air 157,387 57 8.6 141,794 58
Water 116,469 43 12.4 100,834 42
Total 273,856 100 10.2 242,628 100

Outlook. Sales should develop stable in the second half-year compared to the first half-year. However, the decided exit of the United Kingdom from the European Union could affect the market development in Europe. A recovery in the second half-year in Russia and the Middle East is not expected. In the United States and Canada low interest rates and an underbuilt market might enable healthy growth. In Asia/Pacific, particularly in China, a slowdown in construction activity is assumed.

In the previous year, Belimo substantially increased its sales in the second half-year compared to the first half-year. Consequently, it will be challenging to maintain the high growth rate of the first half-year 2016 until year-end.