Huber+Suhner reports a significant increase in order intake after nine months, with a rise in net sales in organic terms. The positive momentum recorded in the first term continued in the third quarter, which proved to be the strongest period of 2014 with net sales of CHF 194 million (previous year CHF 175 million). As in the first two quarters, newly received orders (CHF 205 million) once again exceeded net sales.

In cumulative terms after nine months, order intake rose by 21 percent with demand in Fibber Optics experiencing particularly dynamic development and a surge of 48 percent. The reported net sales of CHF 560.8 million almost matched the previous year's level, thus making it possible to compensate for the mid-year shortfall of just over 5 percent. In organic terms, i.e., adjusted for currency and copper effects, growth amounted to 3 per cent.

For the year as a whole, Huber+Suhner confirms the guidance given in August and expects growth in net sales of 2 to 4 per cent with an EBIT margin which should slightly exceed the target range of 6 to 9 percent.

Considering each sector of the company’s business operations: The increase in order intake of around 18 per cent and the rise in net sales of 5 percent in the Radio Frequency division were attributable above all to the significantly higher demand from the communication markets and to successes in the railway market. Demand in space and defence continued to be restrained, while that in the remaining industrial applications remained approximately at the previous year's levels.

Order intake in Fibber Optics continued to be extremely high in the third quarter. The increase of 48 percent over the past nine months is in particular attributable to successful expansion of the customer base in the Fibber-to-the-Antenna business. The main driver of this pleasing development is the upgrading of mobile communication networks to the LTE/4G standard. Net sales picked up speed during the third quarter, thus compensating for the shortfall of 10 percent from the first term.

Despite the continuing negative base effect from the solar market, the Low Frequency division generated an increase in order intake of 5 percent in the first nine months. By contrast, net sales dropped by a total of 5 per cent compared with the previous year. Business in the railway market continued to see positive development, with high rates of growth being recorded above all in China. The automotive market segment and industrial applications excluding the solar field recorded results similar to those of the previous year.