Turbon AG down, but up
August 22, 2024
Amid revenue dips, Turbon expands strategically, bolstering global operations and securing key contracts.
Turbon AG has reported a slight decline in revenues and profits for the first half of 2024. Despite facing headwinds, particularly in its core European markets, the company remains focused on strategic expansions and operational resilience.
For the first half of 2024, Turbon AG posted revenues of €27.7 million ($30.1 million), down from €29.7 million ($32.3 million) during the same period last year. Pre-tax profit also saw a marginal dip to €1.1 million ($1.2 million) from €1.2 million ($1.3 million). The company attributed the declines to the sluggish economic conditions in the German-speaking regions, which heavily impacted its Turbon Electrics and Electronics (EE) segment.
The Turbon EE segment, which includes electronic manufacturing services, saw revenue drop to €14.4 million ($15.7 million) from €16.3 million ($17.7 million). Pre-tax profit in this segment halved to €0.6 million ($0.7 million). Nevertheless, the company took a strategic step by commencing production at a new facility in Romania to address large-scale and complex manual assembly needs.
Conversely, the Turbon Consumables segment maintained its revenue at €9.1 million ($9.9 million) while significantly boosting pre-tax profit to €0.8 million ($0.9 million) from €0.5 million ($0.5 million). This improvement was driven by Turbon’s strategy to position itself as a single-source supplier in the Middle East, overcoming regional conflicts to secure new customers.
Turbon’s printer segment showed promising developments within the Turbon Services division. While revenue held steady at €4.3 million ($4.7 million), pre-tax profit rose to €0.3 million ($0.3 million). The company expanded its Managed Print Services to include label and smaller printers. It secured a notable contract with a large U.S. chemical company to supply large-format and label printers. The installation of these printers began in May 2024 and is expected to continue over the following months.
Looking ahead, Turbon AG has adjusted its full year forecast slightly downward, anticipating revenues between €56 and €60 million ($60.9 and $65.2 million) and pre-tax profits between €2.5 and €3 million ($2.7 and $3.3 million). The company remains committed to identifying new growth opportunities through strategic partnerships and acquisitions while managing the ongoing economic challenges in its core markets.
Categories : World Focus
Tags : Business Expansion Financials H12024 Turbon
