Hilti operating profit down 36 percent – Liechtenstein
SCHAAN – In the first eight months of the current year, the Hilti Group increased sales by 6.1 percent, while the operating result fell by 36 percent. The reasons for this are interruptions in the global supply chains, Russia’s invasion of Ukraine, negative currency effects and investments in the development of the software business.
According to Hilti AG, the strongest contribution to the increased turnover came from America with around 16 percent. Europe (+7.5 percent), Asia/Pacific (+6.7 percent) and the Eastern Europe/Middle East/Africa region (+3 percent) made a disproportionately low contribution to overall growth in the first eight months of the year.
The Hilti Group is working to limit the margin decline caused by the huge cost increases in the supply chain, as quoted by CEO Christoph Loos in the press release. With the introduction of a platform, an improvement in earnings to more than 10 percent growth in local currencies and less than 15 percent decline in operating profit is expected by the end of the new year. That would correspond to the profitability of 2019.
“Due to persistent inflation, increasing uncertainties in the energy supply, political tensions and rising interest rates, the Hilti Group expects growth momentum in the global construction industry to slow down in the coming months,” the press release continues.