By Andrea Figueras
Interroll Holding, a Swiss manufacturer of handling equipment, has reported a decrease in earnings and sales for the first half of the year. This is due to a decreased order backlog and customer efforts to reduce inventories, which took longer than expected.
Financial Performance
During the first half, Interroll Holding achieved a net profit of 22 million Swiss francs ($25.1 million), down from CHF33.1 million in the same period last year. Sales also declined by 18% to CHF256.2 million. Earnings before interest and taxes dropped to CHF28.7 million from CHF40.8 million.
The postponement of customer projects significantly impacted product sales, particularly in Europe and Asia. Although incoming orders were 0.8% lower at CHF301.9 million, they grew 4.3% in local currency.
The company attributed the decrease in profitability to a negative financial result and higher tax rates.
Future Outlook
Despite the challenges faced during the first half, Interroll Holding is optimistic about the future. It has noticed positive trends in the Americas and expects orders from European customers to gradually improve. The company also anticipates moderate growth in Asia-Pacific.
No specific targets for the full year were provided.
