Gurit has reported unaudited net sales of CHF 213.5 million for the first half of 2024, marking a decrease of 8.8% at constant exchange rates and 12.7% in reported CHF compared to the same period in 2023.
The company achieved an adjusted operating profit of CHF 11.6 million, with a 5.4% margin, down from CHF 13.6 million and a 5.6% margin in the previous year. After restructuring charges, operating profit stood at CHF 9.9 million, with a margin of 4.6%.
The wind market remains flat and cautious in the Western world, although positive developments have been noted in Germany, the UK, and the USA. In China, high levels of wind installations continue, but price pressure persists due to the mismatch between installed capacities and actual demand.
Gurit has adapted by focusing on profitable opportunities and reducing costs within the wind market segment. The structural profiles business is nearing break-even. Wind materials generated CHF 141.0 million in net sales, a 7.6% decrease at constant exchange rates from the first half of 2023. Market challenges continue as several original equipment manufacturers (OEMs) face quality issues, leading to reduced production and lower order intake for Gurit.
Manufacturing solutions saw a 27.0% decline in net sales, amounting to CHF 21.0 million, compared to CHF 30.7 million in the prior year. Western OEMs have delayed the introduction of new turbine platforms, extending the lifespan of existing turbines and shifting orders. Despite this, Gurit has bolstered its position in India by expanding its blade mould production capacity in Chennai, protecting its market share from Chinese competitors.
On 15 August 2024, Gurit announced the closure of its Structural Profile production site in Middelfart, Denmark, with production being transferred to its facilities in India and China. The relocation is expected to be completed by July 2025, with anticipated costs of approximately CHF 10 million, primarily in the second half of 2024.
Despite a slow start to the year, Gurit experienced stronger performance in the second quarter due to new wind blade production and increased demand in non-wind markets. However, full-year sales are expected to be at the lower end of the projected CHF 435-485 million range, with an adjusted operating profit margin of 5-8%. Gurit aims to maintain its leading position among Western wind customers amid volatile market conditions and rising competition from Chinese suppliers.
