Demand for Bucher Emhart Glass’ forming and inspection machinery weakened in 2024 and was considerably below the high level of the previous year.
Order intake declined by 31%, while uncertainties regarding market developments at specific customers led to project delays, which had a negative impact on sales and led to a decline of 12%.
In its latest financial note published on Friday, it said the full stocks of glass containers prompted some manufacturers to shut down production lines.
This also had a negative impact on the spare parts business, albeit to a lesser extent than the new machines business.
The downturn hit Europe and North America in particular due to the higher energy prices and increasing cost pressure for glass containers, while some smaller emerging markets continued to grow. India posted significant gains, the company said.
The operating profit margin declined accordingly but attained a good level of 16.8%. Production planning was adapted to the current situation and capacities at the production sites were reduced.
It added that the trend towards further automation in glass container manufacturing continued; firstly to make production more efficient and reduce waste, and secondly to compensate for higher wage costs and offer employees better working conditions.
Net sales for the year were CHF 462 million ($512.7 million) compared to CHF 524 million ($581.5 million) in 2023.
Bucher Emhart Glass expects demand for glass container manufacturing equipment to recover towards the end of 2025 following the reduction of the stocks of glass containers.
The division anticipates lower sales compared with the high level of the prior year.
Accordingly, the operating profit margin is expected to be much lower in 2025 than in 2024.
