Dynamic market situation
The exceptional demand situation that the Fastening Systems segment had already successfully leveraged in the first half of the reporting period to generate record results continued in the second half of the year, albeit at a slightly lower level. The strong demand resulted in widespread supply shortages on the market, however. Both divisions successfully managed to largely maintain their ability to fill customer orders in this challenging environment.
Robust value chains enabled the Construction division to both serve its existing customers and gain new customers. Market access in Europe and the US was expanded further through the acquisitions of Jevith A/S (Denmark, as of July 1, 2021) and GLR Fasteners (USA, as of August 1, 2021). The two companies’ good positioning in their respective markets will continue to underpin the division’s development going forward.
The Riveting division made use of the good demand situation among industrial customers, whereas the business with customers from the automotive industry cooled down substantially over the course of the second half of the year. This was triggered by bottlenecks in the semiconductor supply chain, which impacted OEMs’ production figures and had a corresponding yet delayed impact on call-offs in the Riveting division.
In this exceptional environment, the segment generated CHF 574.9 million in sales, which corresponds to a remarkable 17.4% increase over the same period of the previous year. Sales in the first half of the year exceeded those of the second half by +4.0%. In organic terms, this resulted in a sales increase of +16.6%. Foreign currency effects had a minor impact of +0.3%.
High capacity utilization and efficiency
Both divisions benefited from a high level of capacity utilization throughout the entire year. Prudent cost and price management enabled the segment to overcome both turbulences attributable to the ongoing pandemic as well as supply chain disruptions, and achieve a record-breaking EBIT margin of 17.4%. An extraordinary result that is 5.5 percentage points higher than the EBIT margin for the same period of the previous year.