Glass technology supplier Bucher Emhart Glass reported a recovery in the second half of 2020 after demand had plummeted.
In a financial note from parent company Bucher Industries, Emhart Glass said the massive public curtailment of public life in many countries in the first half of 2020 led to significantly lower demand for glass containers.
Manufacturers postponed project negotiations and temporarily suspended investment programmes.
In contrast, demand for spare parts increased, as more was invested in the maintenance of existing equipment.
From the mid-year, a slow recovery at a low level was observed.
Overall, order intake at Bucher Emhart Glass posted a major decline in 2020.
Sales were also down against the very good previous year, although the decline was less pronounced in the second half of the year.
The division implemented various measures to reduce costs.
In China, it continued adapting capacities. For these reasons, the operating profit margin is likely to be around the double-digit mark.
Bucher Emhart Glass reported a 39.5% decline in order intake in 2020 of CHF 317 million ($356.3 million) compared to CHF 524 million ($589.1 million) in 2019, while net sales were CHF 421 million in 2020 compared to CHF 487 million in 2019.
It anticipates that capacity utilisation is likely to be low in the first half of 2021, due to project postponements and the division therefore expects to see a decline in sales and the operating profit margin for the year as a whole.