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Investing.com -- Bucher Industries reported third-quarter orders broadly in line with expectations, but weaker U.S. agricultural demand weighed on sales and prompted a cut to full-year profit guidance.
Third-quarter orders rose 6% year-on-year to 773 million Swiss francs, supported by stabilization in some European markets, though U.S. agriculture remained soft due to low crop prices and higher production costs.
Sales fell 10% to 627 million francs, missing consensus by 8% according to RBC Capital Markets, as the company faced a weak order book and delivery timing issues.
The book-to-bill ratio stood at 1.23x in the quarter.
The KUHN division—Bucher’s largest—was most affected, missing revenue forecasts by 11% as large U.S. farmers delayed equipment purchases and local capacity was scaled back.
Municipal orders declined modestly, with stable demand for small street sweepers offset by softness in winter and refuse equipment.
Hydraulics outperformed with 9% higher orders and stronger demand in Europe, China, and India.
Emhart Glass remained weak, with sales down 34% year-on-year despite an order uptick, leading to further capacity cuts.
The company now expects “lower operating profit” for the year, compared with the prior outlook for “somewhat lower,” while maintaining its guidance for “slightly lower sales on a comparable basis.” The downgrade is driven primarily by KUHN, which now forecasts a “slight fall in sales” and lower margins.
RBC analysts led by Sebastian Kuenne said the quarter “shows large fluctuations within the divisions, making capacity planning difficult, especially for KUHN and Emhart Glass.”
They noted that Bucher’s business remains cyclical and capacity adjustments are likely in 2025. RBC continues to forecast an adjusted operating margin decline of about 80 basis points this year, excluding a one-off property gain.
Bucher CFO Manuela Suter highlighted that U.S. farmer income remains uneven, with milk and meat producers faring better than soy and corn growers.
She added that the company is operating at its “lowest staff level in the U.S. for several years” and that tariffs have had only limited impact so far, with KUHN implementing price increases of up to 8% on imported machines.
RBC maintains an Outperform rating and CHF 440 price target, saying the shares still trade at a discount to European industrial peers despite near-term earnings pressure.