Construction industry Hilti with more profit in a difficult environment
The construction equipment manufacturer Hilti performed well in the first eight months despite the difficult environment. Sales fell, albeit due to negative currency effects. Earnings, on the other hand, were up on the previous year.
26.09.2024, 08:24
SDA
However, the Liechtenstein-based company has become somewhat more cautious in its outlook for the year.
Specifically, according to a statement issued on Thursday, the company achieved 1.1 percent lower sales of 4.27 billion Swiss francs from January to August 2024. However, excluding the negative currency effects of 3.0 percentage points, the manufacturer of the famous red drills recorded an increase of 1.9 percent in local currencies.
A challenging environment, particularly in the main European market, had an impact on business development. However, CEO Jahangir Doongaji was quoted as saying that Hilti was able to "successfully master" such "uncertain times" thanks to its business model.
Earnings above previous year
In terms of earnings, however, Hilti achieved an increase. The operating result rose by 4.9 percent to 489 million Swiss francs. The bottom line also showed a 3.0 percent increase in net profit to 345 million.
In terms of the individual regions, Europe and America had to digest a slight drop in sales due to exchange rate effects; in local currencies, Europe virtually stagnated at plus 0.2 percent, while business in America grew by 1.2 percent. Meanwhile, growth in Asia continued at 5.5 percent in local currencies, while the Eastern Europe/Middle East/Africa region even grew by 11.0 percent.
Nevertheless, the company remains cautious about the future. "We expect the market environment to continue to vary greatly. This ranges from a negative trend in our home market of Central Europe to positive developments in Asia/Pacific and the Middle East," says the CEO.
For this reason, Hilti is once again formulating its outlook, which was already slightly lowered in May, in a more cautious manner. For the year as a whole, the Liechtenstein-based Group now anticipates growth in local currencies in the low percentage range. Previously, growth in the low to medium range had been forecast.
