13/02/14: Bühler's higher order intake and change in board of directors

Urs Bühler (l) and Hans J. Löliger
(Photo credit: Bühler)

News courtesy of Bühler - a global leader in the field of process engineering.

Bühler operates in over 140 countries and has a global payroll of over 10,000. In fiscal 2013, the company generated sales revenue of CHF 2,322 million.

Stable order and intake

Order intake amounted to CHF 2363 million ans was thus higher 1% higher than a year ago.  

Slightly lower revenue – lower profitability

Sales revenue (turnover) in 2013 amounted to CHF 2322 million or 3.6% less than in the strong previous year (+13% from 2011); in organic terms, the change was -3%. With CHF 139 million or 6% of sales, the EBIT margin fell short of the result of the year before (CHF 168 million). 

On the one hand, this is due to the strategic optimization of the Advanced Materials division’s portfolio, which entailed integration and restructuring costs. Another one-time effect with a negative impact on Bühler Group’s profitability was unsatisfactory project management in some business units. The Group result is CHF 123 million or 5.3%. Regardless of the lower EBIT achieved in the year under review, Bühler deliberately maintained its high level of spending on research and development of over CHF 100 million as well as the global expansion of its local customer service organizations.

Rejuvenation and internationalization of the Board of Directors

At the General Meeting held on February 10, 2014, Urs Bühler and Hans J. Löliger left the Board of Directors because they have reached the statutory age limit. At the same time, Calvin Grieder was appointed Chairman of the Board in addition to his function as CEO. Peter Quadri, a present Member of the Board, was appointed as the new Vice Chairman. Moreover, Karin Bühler as the first of Urs Bühler’s three daughters joined the Board of Directors (for a comment on Urs Bühler’s departure, please see the attachment). Bühler Group remains 100%-owned by the Bühler family.

In a move to ensure targeted internationalization of the organization, the General Meeting elected two new members to the Board: Linda Yang, General Manager at Bongrain SA (China), and Frank N.J. Braeken, Chief Investment Officer at Amatheon Agri Holding (Dubai). Linda Yang held positions with various international organizations such as Nestlé and Procter & Gamble in China and has in-depth understanding of this market. Frank N.J. Braeken, a Belgian citizen, worked for Unilever for 25 years, lastly in the position of Chief Executive President for Africa.

Outlook

At the start of 2014 Bühler had a solid backlog of orders of CHF 1.3 billion. It provides the potential for achieving further growth on condition that the pace of capital investment picks up again. This assessment is also backed by the fact that Bühler operates in markets which are likely to continue to benefit from strong global social trends. 

These trends include growing demand for safe, healthy, and affordable foods (Food Processing and Grain Processing divisions) and people’s increasing wish for intelligent mobility (Advanced Materials division). Bühler will also strive to steadily improve its operating excellence in order to further increase its productivity and flexibility. As no major one-time effects are expected in 2014 and capital investment in the markets are bound to bear fruit, Bühler continues to aim at an EBIT target bandwidth of 8% to 12% for the year 2014.

Bühler will also strive to steadily improve its operating excellence in order to further increase its productivity and flexibility. As no major one-time effects are expected in 2014 and capital investment in the markets are bound to bear fruit, Bühler continues to aim at an EBIT target bandwidth of 8% to 12% for the year 2014.
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