Regional Business Review

EMEA region

Bystronic operates important production sites for the gold and silver segments in the EMEA region: Laser cutting systems are produced in Switzerland; bending machines in Germany and automation solutions in Italy. With a 46% share, EMEA is Bystronicʼs largest region in terms of sales.

Driven by the high level of economic uncertainty, demand decreased in all markets in the first half of 2024. Overall, order intake fell by 23.6% to CHF 151.6 million (–20.7% at constant exchange rates). Although customers continued to be very cautious, there was a slight improvement over the course of the first six months and an uptick in orders in the second quarter over the first.

In the previous year, the region benefited from a high order backlog. It is now at a more normalized level. As such, sales fell by 36.0% (–33.4% at constant exchange rates) to CHF 150.8 million.

As part of the cost optimization program, Bystronic organized the former country organizations into clusters, reducing one level of management. As planned, long-time President Johan Elster retired, and Eamon Doherty, Chief Service Officer, assumed leadership for the region on an interim basis.

Americas region

Bystronic has successfully developed its business in the Americas region in recent years, expanding its local presence and achieving growth. Despite this good market position, Bystronic was unable to escape the negative economic trends in the last quarters.

The cautious investment behavior of customers led to lower order intake, and orders declined by 24.3% (–21.6% at constant exchange rates) to CHF 110.3 million. In the US, Bystronic serves many small and large customers in the agricultural sector who were cautious with investments due to very low grain prices.

Sales in the region sank by 20.1% (–17.3% at constant exchange rates) to CHF 131.4 million.

China region

In the China region, various activities of the business are represented.

First, the Group conducts research and development in China. The focus is on laser and bending applications as well as on new standardized automation solutions.

Second, Bystronic produces systems and automation solutions for the entry and silver segments in China. The products for the entry segment are especially for the local market and are now also being sold globally through agents. The products for the silver segments are produced for the Chinese markets, as well as those in the APAC region.

Third, Bystronic serves the local markets and relies on a strong presence in sales and service to win local Chinese customers.

Overall, business in China remains highly competitive and is characterized by overcapacity and price pressures. As a result, order intake fell 25.1% (–19.3% at constant exchange rates) to CHF 25.1 million, and net sales declined by 19.2% (–12.8% at constant exchange rates) to CHF 27.9 million.

APAC region

In the APAC region, Bystronic is present with sales and marketing activities. It is the only region with no production sites. The business focuses primarily on the silver segment, which is sourced out of China. The most important markets include Australia and Korea. In Australia, Bystronic recorded another important success with the opening of a customerʼs first Smart Factory. In Korea, the market declined because the government is investing significantly less in infrastructure programs.

As such, order intake fell by 59.1% (–56.1% at constant exchange rates) to CHF 17.7 million. Net sales decline by 38.1% (–34.0% at constant exchange rates) to CHF 20.7 million.

As part of the cost optimization program, Bystronic reorganized the region. The dynamics are very different in individual markets, so the country organizations now report directly to members of the Extended Executive Committee. By simplifying responsibilities, Bystronic can react even better to local market needs. The former president of the APAC region, Norbert Seo, left the company at the end of April. That role and regional functions have been eliminated.