Aalberts realises organic revenue growth in line with expectations
trading update - first ten months 2024
In the first ten months Aalberts realised -2.9% organic revenue growth
compared to last year, for building technology segment -4.7% and industrial
technology segment -0.7%. The added value margin remained on a good level.
Productivity improvement, cost savings and inventory reduction plans are in
place to manage cost inflation and lower volumes. We are deploying our
strategic initiatives with our long-term business plans and portfolio
optimisation. We accelerated our operational excellence program leading to a
one-off strategic restructuring cost of approximately EUR 50 million with an
annual benefit of approximately EUR 25 million.
In eco-friendly buildings we continued to see lower activity in Europe,
especially in Germany and France, where in Benelux and Switzerland demand
improved. We continued to see the impact of decreasing end-user demand in
new build and slowdown in renovation. Stock levels at wholesales remain low
for our products. We saw better activity in America, Asia and Middle East
compared to Europe. Our water treatment offering for heating systems
continued to grow. Energy & resource efficiency in residential and commercial
buildings remains a long-term growth driver.
In semicon efficiency growth continued with volatile demand. Our orderbook
remained on a high level, where we are benefiting from a healthy mix of
customers. Service and refurbishments remain a growth activity and we are
investing in more capacity. Our further expansions are on track, enabling the
strategic growth and new business development plans of our customers. We
see the semicon market in transition.
In sustainable transportation we faced lower demand in automotive, both in
Europe and America. Aerospace continued to grow with strong air travel
demand and aging fleets supporting the need for new deliveries.
The demand for precision manufactured parts and specialised surface
technologies remained on a good level, driven by new developments in
e-mobility, lightweight materials, sustainability and reshoring.
In industrial niches we faced lower activity with reduced demand in general
industries and machine build, predominantly in Germany and France. Our order
intake continued to be strong for our industrial valves in America.
portfolio optimisation
Aalberts acquired Steel Goode Products LLC in America (industrial technology,
September), a thermal spray coating and finishing services provider generating
an annual revenue of approximately USD 15 million. Aalberts divested Elkhart
Products Corporation in America (building technology, August), a copper
solder fitting manufacturer generating an annual revenue of approximately USD
80 million.
CEO statement
Stéphane Simonetta comments: “I would like to thank the Aalberts team for
showing strong resilience, serving our customers while taking all actions
possible to manage challenging markets, cost saving actions and inventory
reductions. We continue to invest for future growth and remain well positioned
for the rebound of activity. We are looking forward to give an update of our
strategy during our Capital Markets Day on 10 December.”