Ganz Transformers Ends H1 With 'Better Than Expected' Results
Ganz Transformers and Electric Rotating Machines achieved a "better than expected" growth in the first half of 2023, according to a press release sent to the Budapest Business Journal.
The Hungarian heavy machinery manufacturer achieved a strong increase in both financial results and orders in H1 2023 compared to the same period last year. Ganz has delivered 66% of its forecast annual revenue for the first six months of the year, totaling EUR 66.6 million, which is almost EUR 24 mln above the order intake for the same period in 2022.
The company generated revenues of EUR 35.4 mln in the first half of 2023, almost three times of the amount recorded in the same period last year, and the first-half profit after tax amounted to EUR 2.8 mln.
The heavy equipment manufacturer has performed well in several areas, including domestic and international markets, as well as in the digitalization efforts of the energy sector. In terms of order volumes, the Hungarian market met 115% of the company’s annual budget in the first six months of the year. In 2023 the company successfully installed and commissioned, among others, five 50 MVA and two 160 MVA transformers for Forest-Vill. for the 250 MW solar park in Kiskunhalas. Ganz also manufactured this year's largest, 500 MVA, five-column transformer for Mavir for its Kerepes substation.
The company is also rapidly strengthening its position on the international markets: in the first half of the year, Ganz has already fulfilled 50% of its export order book for the year, for a total of almost EUR 25 mln. As a result, export orders rose by almost 180% compared to the same period last year. The increase could be similar in the second half of the year, given that the total value of unexecuted orders is EUR 10 mln, Ganz notes.
“In the nearly two and a half years since the reorganization, Ganz has not only stabilized its manufacturing and operational activities but has also exceeded expectations in terms of financial results and order intake. Our financial results for the first six months of 2023 are a testament to our stable operations, a well-functioning and sustainable business strategy, and strong relationships with our suppliers. However, we are also very pleased to have added more than 30 new employees in recent months, in line with our previously announced plans,” says Jan Prins, managing director of Ganz.
In 2022, the Hungarian company, which this year celebrates the 145th anniversary of the establishment of its electric division, launched its intelligent condition monitoring system, called Ganz Intelligent Solutions. The introduction of the digital system has had an impact on the energy market that exceeded the company's expectations. In the first half of the year, Ganz has manufactured 14 units, and will produce a total of 36 units equipped with the condition monitoring system by the end of the year, and Ganz has already received orders for 40 intelligent transformers for 2024.
The company also manufactures what it calls the "most intelligent" transformer with Intelligent Solutions’ iAdvance package for one of the major players in the Hungarian energy sector. Seeing the strong market interest, the company also took the strategic decision in the first half of the year to extend the condition monitoring system to electrical rotating machines in addition to transformers.
“In addition to the outstanding growth in the results of the transformer division, our rotating machines and service divisions have also seen a significant increase in order numbers this year, with order volumes 150% higher in the former and 210% higher in the latter than in the same period last year. We are forecasting similarly strong growth in the period ahead, with the value of unexecuted orders booked almost double that of the first half of last year: more than EUR 103 mln, or nearly HUF 39 bln, and the order book for this year is already filled for 98%," comments Prins.
"We also see that Ganz is becoming a more and more recognized name in the renewable energy market, thanks to our customer focus and the high level of expertise of our engineers," he adds.
In the first months of the year, Ganz also restructured its organizational operations, which included the creation of the Ganz 2.0 operational organization, and in June, the appointment of a COO to lead areas such as the design and manufacturing of transformers and rotating machines, project management and industrial engineering, as well as continuous improvement. At the same time, the executive office is responsible for the management of Ganz's finance, HR, IT, sales and marketing, research and development activities, and service business.
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