A more focused and profitable Phoenix Mecano - Seite 2

Division performance

Sales in the DewertOkin Technology (DOT) Group division rose by 6.5% to EUR 330.4 million. Measured in local currency, the increase was 12.6%. In the United States, the furniture market picked up over the course of 2023, although it has not yet returned to pre-Covid levels. The division's new headquarters in Jiaxing, southwest of Shanghai, were officially opened in November. As well as production, the site houses administration, research & development, sales, service and laboratory functions.

Sales in the Industrial Components division declined by 12.8% to EUR 223.1 million. Organically, sales were up by 0.8%. In the Automation Modules business area, price increases and a high level of orders on hand cushioned declining demand as a result of a slowdown in industrial activity. The Electrotechnical Components business area opened a new site in Mexico to support its sales activities in this emerging market. The Measuring Technology business area benefited from the global expansion of high-voltage direct current (HVDC) transmission and investments in smart grids.

In the Enclosure Systems division, gross sales rose slightly to EUR 229.7 million (up 1.3%). Measured in local currency, they were up by 2.0%. While orders from mechanical engineering customers were subdued, demand for industrial PCs grew dynamically. Also in demand were power distribution units for electric commercial vehicles and explosion-proof enclosures for green hydrogen. The division is increasingly focusing its attention on such growth areas.

Outlook

At the end of last year, high inflation rates, increased interest rates and geopolitical risks dampened the economic outlook. Phoenix Mecano Group customers are likely to remain under pressure, particularly those facing international competition.

Phoenix Mecano is responding to weaker demand in some sectors of application and is constantly adjusting its capacities in line with incoming orders.

One bright spot is the confirmed turnaround of the DewertOkin Technology Group, which saw a marked upturn in order momentum in the fourth quarter. Going forward, Phoenix Mecano expects higher growth rates in the smart furniture segment once again and anticipates a further improvement in DOT Group's operating performance.