Belimo Holding sees solid growth in first half

Belimo Holding reported a “dynamic” first half on Monday, with double-digit sales growth of 12.7%, or 10.8% in currency-adjusted terms, to CHF 325.1m (£236.57m).

The Swiss heating, ventilation and air conditioning actuator company said its operating income before interest and taxes improved to to CHF 59.5m from CHF 49.1m year-on-year, with its EBIT margin rising to 18.3% from 17%.

That resulted in a net income of CHF 47.6m, up from CHF 38.4m, and earnings per share of CHF 77.40, compared to CHF 62.40 a year ago.

Looking at its Europe geography, Belimo said that, supported by the “good economic situation” in the region and the appreciation of the euro against the Swiss franc, its biggest region recorded sales growth of 19.7%, or 12.6% in currency-adjusted terms.

“Demand for heating, ventilation and air conditioning technology (HVAC) from Belimo developed correspondingly positively in almost all countries in the region,” its board said in its statement.

“Particularly noteworthy are the high growth contributions in Switzerland, Germany, Russia, France and Poland.

“The investments made in the sales organizations in Turkey and Sweden over recent years also led to favorable growth rates in 2018.”

Both air and water applications reported double-digit sales growth, the firm reported, with the former said to have benefitted “significantly” from new customers in the original equipment manufacturer business.

“In the area of water applications, the growth rates can be attributed to the innovative expansion of the product range over recent years.”

In the Americas, Belimo said the continuing trend to upgrade existing buildings with energy-saving HVAC systems and the “stable demand” for new building projects meant that sales in the region increased by 4.1%, or in currency-adjusted terms 7.6%.

All subsidiaries were said to have contributed to the successful result, with market share gains achieved particularly in the United States and Canada, according to the board.

In Brazil, there were reportedly signs of recovery, after stagnation of recent years.

“Investments in the construction of data centers have been conducive to growth in air applications, which grew faster overall than water applications.

“Both the OEM and contracting business enjoyed favorable development due to the continuing good overall economic situation and the broad product range of Belimo.”

In its Asia Pacific geography, Belimo said sales grew 13.%, or 14.2% in currency-adjusted terms.

It said that in China in particular, Belimo had a “strong” first half-year with a good order volume for infrastructure projects and data centres.

India and Australia also achieved “convincing” double-digit growth rates.

“The recently launched products designed for the Asian market, such as the new damper actuator for variable air volume control ‘VAV ZoneEase’ or the pressure-independent flow limiter valve (PIFLV), met with great interest.”

Looking ahead, Belimo said that, provided political and economic conditions did not deteriorate, it was “confident” about the course of the financial year.

“However, it will probably not be possible to maintain the high growth rate of the first half-year 2018.

“The good economic situation makes a favorable forecast for the market region Europe possible.”

Belimo said that, despite the long expansion phase, there were also signs of a sustained positive economic environment in the Americas region.

The outlook for the Asia Pacific market region remains good due to the construction industry and the growth strategy focused on Asia.”