Segment Report
Challenging market setting
The Engineered Components (EC), Fastening Systems (FS) and Distribution & Logistics (D&L) segments operated in different market environments. While demand that was more stable and higher overall enabled the EC segment to achieve good results in the 2024 financial year, market demand in the FS segment only started to improve in the fourth quarter. Economic momentum in the D&L segment was restrained year-over-year for the entire financial year.
Developments at the three divisions of the EC segment were positive during the 2024 financial year. The Electronics division achieved a significant recovery in results, driven by a strong increase of demand for high capacity Nearline Hard Disk Drives for data centers. The Automotive division’s good start in the first half of 2024 was tarnished by European automakers’ troubles in the second half of the year. The division’s positioning remains good and measures initiated in 2023 to restore sustainable profitability are having an impact. In the Medical & Industrial Specials division, the development of the Medical Devices and Aerospace application areas in particular was highly encouraging throughout the entire year.
Key figures Engineered Components in CHF million | 2024 | +/–% | 2023 restated1 | 2023 reported |
Third–party sales | 1,115.4 | 1.6 | 1,097.5 | 987.7 |
Organic growth | 3.7 | |||
Net sales | 1,124.9 | 2.0 | 1,102.8 | 989.2 |
EBITDA | 236.2 | 16.0 | 203.6 | 179.4 |
in % of net sales | 21.0 | 18.5 | 18.1 | |
Operating profit (EBIT) | 155.2 | 25.5 | 123.7 | 104.2 |
in % of net sales | 13.8 | 11.2 | 10.5 | |
Operating profit (EBIT) adjusted | 155.2 | 25.5 | 123.7 | 104.2 |
in % of net sales | 13.8 | 11.2 | 10.5 | |
Average capital employed | 923.8 | 3.0 | 897.2 | 824.9 |
Investments | 106.1 | –16.5 | 127.1 | 124.6 |
ROCE in %2 | 16.8 | 13.8 | 12.6 | |
CO2 emissions in metric tons/million value-added francs (Scope 1+2) | 38.9 | –53.0 | 82.7 | 87.5 |
Share of renewable electricity in % | 76.4 | 28.8 | 26.7 | |
Employees (FTE) | 7,394 | 5.0 | 7,045 | 6,529 |
Accident rate in quantity/million hours | 3.0 | 0.0 | 3.0 | 2.9 |
1The previous year’s figures were adjusted to the new segment composition for better comparability.
2EBIT adjusted in % of average capital employed
The FS segment, which serves customers in the construction industry in Europe and North America, only saw the market environment improve in the fourth quarter of the 2024 financial year. Both regions benefited equally from the positive development in the final quarter of the year. With the segment’s acquisitions of Etanco (Spain, as of May 1, 2024), EPRO (Slovenia, as of October 1, 2024) and Pro Fastening Systems (USA, as of November 1, 2024), the segment succeeded in expanding its market access considerably in the respective regions. As in the past, several product innovations underscored the segment’s strong customer focus.
Key figures Fastening Systems in CHF million | 2024 | +/–% | 2023 restated1 | 2023 reported |
Third–party sales | 480.6 | –4.9 | 505.5 | 615.3 |
Organic growth | –3.8 | |||
Net sales | 488.5 | –5.2 | 515.3 | 626.3 |
EBITDA | 80.6 | –4.6 | 84.5 | 108.7 |
in % of net sales | 16.5 | 16.4 | 17.4 | |
Operating profit (EBIT) | 68.8 | –6.5 | 73.6 | 93.1 |
in % of net sales | 14.1 | 14.3 | 14.9 | |
Operating profit (EBIT) adjusted | 68.8 | –6.5 | 73.6 | 93.1 |
in % of net sales | 14.1 | 14.3 | 14.9 | |
Average capital employed | 228.9 | –4.8 | 240.5 | 312.8 |
Investments | 18.5 | –2.6 | 19.0 | 21.5 |
ROCE in %2 | 30.1 | 30.6 | 29.8 | |
CO2 emissions in metric tons/million value-added francs (Scope 1+2) | 48.4 | 23.5 | 39.2 | 35.5 |
Share of renewable electricity in % | 63.6 | 76.5 | 77.4 | |
Employees (FTE) | 2,046 | 5.8 | 1,934 | 2,450 |
Accident rate in quantity/million hours | 7.1 | –20.2 | 8.9 | 8.0 |
1The previous year’s figures were adjusted to the new segment composition for better comparability.
2EBIT adjusted in % of average capital employed
The industrial manufacturing end market – mainly served by the D&L segment, which provides quality tools and in Switzerland additionally fastening technology – experienced a restraint market momentum throughout the entire financial year. In this challenging environment, the D&L segment managed to achieve solid results thanks to its prudent cost management and comprehensive range of products and services. A European distribution partner replaced its warehouse with the warehouse in LogisticCity during the 2024 financial year. This distribution partner’s customers will be supplied directly from LogisticCity in Nuremberg (Germany) going forward, providing them the opportunity to reap the benefits offered by the modern tool logistics and excellent connection to logistics partners. In addition, the capacity utilization of LogisticCity will be increased significantly as a result.
Key figures Distribution & Logistics in CHF million | 2024 | +/–% | 2023 |
Third–party sales | 1,443.0 | –3.0 | 1,487.8 |
Organic growth | –1.4 | ||
Net sales | 1,437.1 | –2.8 | 1,477.8 |
EBITDA | 159.0 | –17.9 | 193.7 |
in % of net sales | 11.1 | 13.1 | |
Operating profit (EBIT) | 128.7 | –21.5 | 164.0 |
in % of net sales | 9.0 | 11.1 | |
Operating profit (EBIT) adjusted | 128.7 | –21.5 | 164.0 |
in % of net sales | 9.0 | 11.1 | |
Average capital employed | 638.3 | 3.6 | 616.3 |
Investments | 15.4 | –24.5 | 20.4 |
ROCE in %1 | 20.2 | 26.6 | |
CO2 emissions in metric tons/million value-added francs (Scope 1+2) | 8.5 | 13.3 | 7.5 |
Share of renewable electricity in % | 93.7 | 90.0 | |
Employees (FTE) | 3,769 | –0.5 | 3,789 |
Accident rate in quantity/million hours | 5.5 | 37.5 | 4.0 |
1EBIT adjusted in % of average capital employed
The complementation of the Automotive and Medical & Industrial Specials divisions in the EC segment with the end-market-specific business areas of the former Riveting division was successfully implemented as of January 1, 2024. The previous year’s figures have been restated to reflect the new segmentation in the interests of better comparability.
Investment projects progressing as planned
Major strategic projects to create the additional capacity needed for growth proceeded according to plan:
- SFS has been successfully positioning itself as a development partner and supplier for customers from the automotive industry for years. Innovations are being driven by trends toward greater comfort, better safety and increased efficiency and, from a higher perspective, autonomous driving technology. The associated electrification of vehicles is a promising growth area that benefits SFS. One example of this is the production of precision components and assemblies for a new generation of electric brake systems. Further strides were made in the ramp-ups at the Heerbrugg (Switzerland), Medina (USA) and Nantong (China) locations.
- The planned expansion of the location in Nantong was completed on schedule. This extension increased the production area by roughly 70%. The additional capacities are mainly used for producing stamped precision components for the electronics industry and utilization was already at a high level throughout the year. This has successfully increased the Group’s share of wallet in devices like smartphones. Other areas are being used by the Automotive and Medical & Industrial Specials divisions.
- In order to meet the needs of customers of the Automotive and Electronics divisions locally, competently and with agility, a new plant construction project was kicked off in India during the year under review. The new plant is located in the vicinity of existing locations.
- Work on the expansion of manufacturing capacities for local medical device customers in Heredia (Costa Rica) was concluded. The production area is now twice as large as before. The location generated strong growth again in the financial year.
- The FS segment started expanding its production capacities at the location in Exeter (USA). Local needs will increasingly be met directly from the US once the additional machines have been installed. Production is scheduled to be ramped up in the second quarter of 2025.
Organizational further development
To strengthen the focus on selected end markets, make systematic use of potential arising through the inclusion of Hoffmann and intensify collaboration even further, the FS and D&L segments were newly organized as at January 1, 2025:
- The industrial business areas of D&L Switzerland, Allchemet and D&L International will be combined to form the D&L segment.
- The Construction & Wood business area of D&L Switzerland will be integrated into the FS segment.
- The FS and D&L segments will no longer have any divisions.
This step will serve to streamline the Group structure. The D&L segment will be led by Martin Reichenecker effective January 1, 2025, and the FS segment by Thomas Jung. Iso Raunjak will take over the role of Chief Human Resources Officer (CHRO).