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X-ray technology will continue to be growth driver, says Sartorius

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By Joe Whitworth+

11-Aug-2014
Last updated on 11-Aug-2014 at 17:20 GMT

Photo copyright: Sartorius Intec
Photo copyright: Sartorius Intec

Sartorius Intec believes X-ray technology will continue to be a growth driver as part of the inspection and detection topic.

The firm said transparency and management of data relating to OEE (Overall Equipment Effectiveness) will be another growth area.

It said the integration of technologies and equipment footprint reduction will also be a focus, as it reported first half business figures for 2014.   

Sartorius Intec, formerly the Industrial Weighing division, provides industrial scales, tank and silo weighing, and checkweighing and inspection equipment.

The food and beverage sector accounts for 50% of the division’s sales globally in the full portfolio.

It covers measurement and inspection equipment, such as high-capacity load cells, checkweighers, metal detectors and industrial scales.

Increase in processed food

Peter Grimley, managing director of Sartorius Intec, told FoodQualityNews.com there has been revenue share growth in this segment.

“The first is certainly the general increase in the processed food market and its disproportionate growth in the BRIC (Brazil, Russia, India and China) markets as well as the MINT (Mexico, Indonesia, Nigeria and Turkey) areas,” he said.

“Secondly, the results of our increased strategic focus on this segment in the last years will develop strongly our position here.”

He said these findings reflected what was said in a previous interview with FQN after preliminary 2013 figures .

Subdued investment appetite

Grimley said he had seen a very subdued investment appetite in all areas of the world toward the end of 2013 and first quarter 2014.

“Clearly the core growth market of China was depressed due in part to liquidity issues and restrictions on bank lending and to some point by a “peak of the crest” for a lot of the major local and international players in their investment plans,” he said.

“India business was also delayed due in some part to customers awaiting the conclusion of the national elections.

“Small and medium products continued while larger scale projects had been held back. The second quarter certainly saw some of the expected larger projects fall along with specific market initiatives taking effect.”

Order intake rose but first-half sales revenue was being below the year-earlier figure.

Grimley said this was simply a timing issue relating to the execution of orders on hand and customer delivery requirements. 

Total group

Sartorius increased its order intake in the first half by 8.9% (reported: +6.7%) to €488.6m. Sales revenue also grew 7.8% (reported: +5.7%), attaining €466.3m compared with €441.3m in the year-earlier period.

Operating profit also climbed 4.8%; its respective margin after six months was 19.1%.

For the Lab Products & Services Division, order intake rose 4% (reported: +1.4%) to €132.3m. At €128.5m, sales revenue for the division was slightly below the prior-year figure (-2.7%; reported: -5.1%).

Industrial Technologies

Following a weak start into the year, business for the smallest group division, Industrial Technologies, picked up in the second quarter.

Order intake rose 6.9% (reported: +4.9%) to €51.4m. At €46.7m the division's first-half sales revenue in 2014 was still below the year-earlier figure by -4.8% (reported: -6.4%).

Regionally, the strongest growth impulses were generated by North America, where a gain of 22.4% was recorded and growth contributed by acquisitions played a substantial role.

Sales with customers in Asia were up 6.9%, and sales in Europe rose 4.5%. 

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