Pleasing rise in order intake and sales

Group

1) Adjusted for currency effects

For the Group, the year began against a favourable economic backdrop, especially in Europe, with a much-improved investment climate compared with the first quarter of 2017. Bucher Industries' group sales and order intake were significantly higher than in the same quarter of the previous year. Europe saw a continuation of the recovery in the agricultural machinery market that had begun the previous year. Demand in Europe was boosted as milk and meat prices stabilised. In the first months of the new year, demand for municipal vehicles, hydraulic components and glass-forming machinery remained strong. The business for equipment for making wine and fruit juice as well as automation solutions also picked up considerably. Euro appreciation led to a positive translation effect.

Kuhn Group

1) Adjusted for currency effects

Positive European markets The situation in the agricultural machinery market was encouraging, particularly in Western Europe. A recovery continued in France, where the effects of poor harvests in 2016 were still being felt last year. Dairy and livestock farming performed well in the first quarter. However, the arable sector will need more time to recover, especially in North America, due to high inventories and good harvests. Farmers in North America have consequently had to contend with low incomes, and the cold and wet spring weather was a factor in their reticence to invest. There were also signs of caution in Brazil, where the upcoming elections and associated uncertainties over subsidy programmes curbed farmers' willingness to invest. Compared with the same period in the previous year, the order intake increased by a pleasing 17%. Sales growth was lower, at 10%, which was partly attributable to delays in delivery.

Bucher Municipal

1) Adjusted for currency effects

Sustained strong demand The favourable economic climate in Europe and Australia produced an increase in demand for municipal vehicles. More truck mounted and compact sweepers were requested in France, Germany and Russia. Demand for sewer cleaning vehicles increased significantly, as did demand for refuse collection vehicles in Australia. An early winter with plenty of snow encouraged a further recovery in the winter maintenance equipment business. The general rise in demand resulted in a significant growth of 24% in order intake. Sales grew by as much as 35%, thanks to a well-filled order book at the start of the year coupled with increased sweeper production capacity.

Bucher Hydraulics

1) Adjusted for currency effects

Further record figures Demand for hydraulic components in the main markets Europe, North America and Asia remained extraordinarily high in the first quarter of 2018. Within Europe, the key market Germany was very buoyant. The three largest segments - materials handling, agricultural machinery and construction machines - reported continuing high growth rates. Brisk demand for hydraulics solutions was reflected in the division's order intake, which increased by 19%. Sales rose 17% compared with the first quarter of 2017, setting a new record.

Bucher Emhart Glass

1) Adjusted for currency effects

Positive market sentiment In nearly all markets, the increase in global demand for glass encouraged manufacturers of glass containers to further invest. There was an upward trend in in North America and fortunately, the recovery in China continued. The order intake almost matched the high figure for the first quarter of 2017, despite project-related fluctuations. Thanks to a well-filled order book at year-end and to lively investment activity, sales increased by 25%.

Bucher Specials

1) Adjusted for currency effects

Strong recovery in beverage technologies Bucher Unipektin's beverage technologies were greatly in demand in the first quarter of 2018, with major orders secured in Eastern Europe and Asia. The beer filtration business benefited from investments by brewers in Mexico. Bucher Vaslin's grape presses and spare parts were also more sought after. In particular, there was an increase in demand for reception lines. Encouragingly, the trend in France was positive once again, despite adverse weather conditions in the previous year. The Swiss market for agricultural machinery was in marked decline as the year began. Uncertainties about the country's agricultural policy strategy 2022 and new free trade agreements persisted, making farmers less inclined to invest. However, there was increased demand for Jetter's automation technology control systems, thanks to the favourable economic conditions in Germany in particular, and to strong demand for control systems for glass-forming machinery.

Outlook for 2018 The Group assumes market trends to remain positive overall during the current year. Kuhn Group expects stable milk and livestock prices in Europe, but continued volatility in arable product prices, especially in North America. The political tensions between the USA and China could well contribute to further delays in recovery in North America. Kuhn Group's operating profit margin is likely to again be adversely impacted by uncertainties in North America and by its current challenges with the supply chain and human resources. With a well-filled order book and high order intake in the first quarter, Bucher Municipal expects a continuing upward trend. The division will also be able to further exploit the cost-saving potential of its increased sweeper production capacity over the course of the year. Bucher Hydraulics anticipates demand for its hydraulic solutions to remain high. The upbeat market sentiment in the glass container industry is likely to continue, and with it the high demand for Bucher Emhart Glass's glass-forming machinery. Bucher Specials forecasts its four business units to perform well overall. The Group expects its sales and net profit for the year to increase.

Contact

Jacques Sanche, CEO

Manuela Suter, CFO

Phone +41 43 815 80 40

E-mail: media@bucherindustries.com

www.bucherindustries.com