Burckhardt Compression has revised its 2011 fiscal forecast due to the strength of the Swiss franc.
Burckhardt Compression now expects fiscal year 2011 sales to amount to approximately CHF 330 million with an EBIT margin near the middle of its targeted long-term range of 10% to 20%.
The firm has attested that guidance was revised due to, “the tremendous appreciation of the Swiss franc over the past several months.”
In a corporate press release the firm elaborated: “The highly volatile fluctuations on the currency front in the current fiscal year will leave their mark on the company’s results for fiscal year 2011 (closing 31st March 2012).”
Burckhardt Compression expects sales in fiscal year 2011 to reach approximately CHF 330 million. The EBIT margin is expected to recede towards the middle of the long-term targeted range of 10% to 20%.
The technology company had previously expected slightly higher sales with profit margins around the same level as in the previous year.
According to the firm, despite efforts to counter-act the situation, it was not possible to offset the effect. Nevertheless, Burckhardt Compression continues to expect orders received in the current fiscal year to exceed the order intake from the previous fiscal year.