Bobst Hit By Downturn In 2008

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The Bobst Group, one of the world’s largest manufacturers of conversion machinery for packaging, expect a reduction in revenues during 2008 as compared to the previous year because of the economic slowdown. According to an announcement, they expect to end 2008 with revenues of between CHF 1,650 million and CHF 1,700 million after reducing the effect of gain in exchange rates during the year. Their total sales in 2007 were CHF 1, 743.6 million. Profitability is also expected to be lower than that of the previous year because of lower sales volume and one-time costs.
Business has been affected in all three machinery segments – Folding Cartons, Corrugated Packaging and Flexible Materials. In fact, the latter business group expects to record a loss of between CHF 13 million and CHF 15 million, due in part to the one-time costs of integrating the acquisition of Fischer & Krecke last spring.

Bobst are preparing to take necessary measures to adapt to this new situation if it were to persist. At the same time, they are continuing to drive the various initiatives enabling them to achieve their strategic objectives and financial targets in the mid and long term.