- Although Stadler Rail won more orders than ever last year, the profit was disheveled by the strength of the Swiss franc.
- The bottom line is that net profit fell by 44 percent to CHF 75.1 million.
The group of patron Peter Spuhler also had problems with the supply chain. Because of the war in Ukraine and the sanctions, the Stadler plant in Belarus, for example, is practically at a standstill. “We want to keep the plant there and hope that this unfortunate and impossible war will soon be over,” says Spuhler
Exchange rate burdens the profit margin
In addition, inflation and the strength of the Swiss franc are having a massive impact on earnings. The problem: order books are well filled, but at prices that are 70 percent fixed – at the same time, production costs are rising. That squeezes the profit margin.
Operating profit fell by 8 percent to 205 million francs, the margin to 5.5 percent after 6.2 percent in 2021. Without the negative currency effects, Stadler would have achieved an operating profit margin of around 7 percent, according to the group.
After all, shopping in the EU is a little cheaper
Other industrial companies in Switzerland are more easily able to cope with the strength of the Swiss franc. Some even say they can continue to buy products from the EU cheaply thanks to the strong Swiss franc, even though they would actually be more expensive because of the inflation there.
But that’s not how it works at Stadler. “Purchasing may benefit, but it affects a longer period of time, not just the current year – like the exchange rate corrections that we have to make,” says Spuhler.
Clear number two in Europe
Stadler was able to further increase its market share, but the group, headquartered in Bussnang/TG, clearly remains number two in Europe, the most important train market in the world.
The French-Canadian Alstom-Bombardier group is still the leader. Stadler not only produces in Eastern Switzerland, but also has plants in the EU and the USA, among other places.
Bernsteiner took over from Spuhler
Spuhler is retiring from the post of CEO to the Stadler Board of Directors. He has done that before, but then had to take over the baton again as operational boss.
This should not be repeated with his current successor Markus Bernsteiner: “I fought side by side with Bernsteier for 22 years so that Stadler could prevail in the competition,” emphasizes Spuhler. He knows Bernsteiner “inside and out”. Spuhler is “very confident that it will turn out well”.
Bernsteiner is an old hand at Stadler: He used to be a production manager with 65 people in the factory. Now he is the boss of 14,000 employees.