Softing AG Reports on First Quarter of 2024 Amid Economic Challenges

Softing AG has completed the first quarter of 2024 with mixed results, attributing the varying performance levels across different sectors to a challenging economic environment and the effect of fulfilling backorders from the previous years. Despite a decrease in total quarterly revenue from EUR 28.5 million in 2023 to EUR 24.2 million, the figure represents a growth from the EUR 20.6 million reported in Q1 2022, showing a roughly 20% increase in revenue over two years.

The company noted a significant decline in orders this quarter, amounting to EUR 37.2 million compared to the previous year's EUR 69.8 million, which had been inflated due to large clearing of backorders. This decline is seen primarily in the North American industrial automation market, which has faced slowdowns. Meanwhile, Softing's European Industrial and Automotive segments demonstrated stability and growth, with the Automotive segment reporting a revenue increase to EUR 6.5 million from EUR 4.5 million in the previous year.

Looking forward, Softing remains positive regarding the future, continuing to push for greater market penetration and evaluating several acquisition opportunities. The company reaffirms its full-year revenue forecast to be between EUR 105 million and EUR 113 million, with operating EBIT projected between EUR 5 million and EUR 7 million. These expectations hinge on anticipated improvements in product demand and new project initiations in the latter half of the year.