Switzerland-based gas compression solutions company Burckhardt Compression has released its full-year results for 2019, highlighting higher sales, higher profit and lower order intake.
For the year, sales rose by 5.1% to CHF 629.6m (€584.4m), excluding the effects of currency translation and acquisitions, year-on-year sales growth was 3.9%.
Sales at the Service Division rose by 7.8% to CHF 241.3m (€224.2m), while the Systems Division reported a 3.4% increase to CHF 388.3m (€361m).
Consolidated order intake amounted to CHF 607.3m (€564.6m), 7.8% below the figure for the previous fiscal year, which was the highest ever recorded in the history of Burckhardt Compression.
Excluding the effects of currency translation and acquisition activity, incoming order declined by 8.8% year-on-year.
Both divisions experience order deferrals during the final quarter of the fiscal year due to the coronavirus outbreak.
New orders at the Systems Division amounted to CHF 361.2m (€335.8m), 15.6% less than in the previous fiscal year.
The Services Division increased its order intake by 6.7% to CHF 246.1m (€228.8m), of which Arkos contributed CHF 17.6m (€16.4m) following the full acquisition in late November 2019.
Gross profit of CHF 149.8m (€139.2m) topped the prior-year figure of CHF 135.7m (€126.2m) by 10.4% and the resulting gross profit margin was 23.8%.
The gross margin at the Systems Division improved to 11.0%, despite recognition of the remaining cost overruns in connection with the LNGM business, which amounted to approximately CHF 10m (€9.4m) in the fiscal year under review.
Gross profit at the Services Division rose by 1.7% to CHF 107m (€99.4m), resulting in a gross profit margin of 44.3%.
Burckhardt Compression is guiding for more than CHF 650m (€604.3m) in sales for fiscal year 2020. The challenges encountered in the LNGM business over recent years were successfully overcome in fiscal year 2019.
On the other hand, Burckhardt Compression expects consequences due to the current global uncertainties. From today’s perspective, the company expects stable profit margins for the 2020 financial year.
The longer-term effects of the coronavirus on Burckhardt Compression’s business cannot be estimated at this time. Order intake for the products and services in the first two months of the new fiscal year was lower than in the comparable prior-year period.