The world market leader for assembly and fastening materials is feeling the weaker demand from the construction industry.
(Photo: Andreas Lechner/ PR)
Stuttgart The weak economy and high raw material costs are dampening the momentum at Würth. In the first half of the year, the sales of the world market leader for assembly and fastening material grew by 5.9 percent to 10.5 billion euros, as the company announced on Monday.
“We feel the economy slowing down: after two years with record sales and operating results, the economy is now cooling off,” said Würth CEO Robert Friedmann. In the first quarter, growth was still 9.3 percent.
After almost three years of the corona pandemic and the associated supply chain problems, the supply situation is easing. In Europe, however, high interest rates and costs primarily depressed demand from the construction industry, which is important for Würth. “The bottom has not yet been reached in the construction industry,” said Friedmann.
Würth: Operating profit falls in the first half of the year
In addition, many companies reduced their buffers in the warehouses. The car industry, which Würth supplies with small parts, is also recovering more slowly than expected in Europe.
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