The positive momentum recorded in the first term continued in the third quarter as well. The latter proved to be the strongest period of 2014 with net sales of CHF 194 million (previous year CHF 175 million). As in the first two quarters, newly received orders (CHF 205 million) once again exceeded net sales.
In cumulative terms after nine months, order intake rose by 21%, with demand in Fiber Optics experiencing particularly dynamic development and a surge of 48%. The reported net sales of CHF 560.8 million almost matched the previous year's level, thus making it possible to compensate for the mid-year shortfall of just over 5%. In organic terms, i.e. adjusted for currency and copper effects, growth amounted to 3%.
For the year as a whole, HUBER+SUHNER confirms the guidance given in August and expects growth in net sales of 2-4% with an EBIT margin which should slightly exceed the target range of 6-9%.
Radio Frequency on a path of growth
The increase in order intake of around 18% and the rise in net sales of 5% in the Radio Frequency division were attributable above all to the significantly higher demand from the communication markets and to successes in the railway market. Demand in space and defence continued to be restrained, while that in the remaining industrial applications remained approximately at the previous year's levels.
Significant increase in orders in Fiber Optics Order intake in Fiber Optics continued to be extremely high in the third quarter. The increase of 48% over the past nine months is in particular attributable to successful expansion of the customer base in the Fiber-to- the-Antenna business. The main driver of this pleasing development is the upgrading of mobile communication networks to the LTE/4G standard. Net sales picked up speed during the third quarter, thus compensating for the shortfall of 10% from the first term.
More orders and lower net sales in Low Frequency Despite the continuing negative base effect from the solar market, the Low Frequency division generated an increase in order intake of 5% in the first nine months. By contrast, net sales dropped by a total of 5% compared with the previous year. Business in the railway market continued to see positive development, with high rates of growth being recorded above all in China. The automotive market segment and industrial applications excluding the solar field recorded results similar to those of the previous year.
About HUBER+SUHNER Group
HUBER+SUHNER is a global company with headquarters in Switzerland that develops and manufactures components and system solutions for electrical and optical connectivity. With cables, connectors and systems - developed from the three core technologies of radio frequency, fiber optics and low frequency - the company serves customers in the communication, transportation and industrial sectors. The products deliver high performance, quality, reliability and long life - even under harsh environment conditions. Our global production network, combined with group companies and agencies in over 60 countries, puts HUBER+SUHNER close to its customers. For more information, visit hubersuhner.com.