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European Switch Market Ends First Three Quarters of 2012 with Sales and Bookings 6% Lower than 2011

02.06.2013 // Michael Schwert // Switches & Relays

Total reported sales for all switch categories in Europe for Q3'12 were 4% below the previous quarter and 5% less than observed in the third quarter of 2011. Sales units for Q3 came in 8% lower than Q2'12 and 12% less than the same quarter in 2011.

The total booking dollars reported for all switch categories in Europe for Q3'12 ran 10% less than the previous quarter and above Q3'11 by 5%. The third quarter's book-to-bill ratio for euros was 0.922. Booking units in Q3'12 were 16% lower than Q2. The first quarter's book-to-bill ratio for units was 0.841.

The third quarter versus the second shows lower rates for sales euros in less than half of the categories and down 4% in total. Units decreased 8% in total and for six of eight categories while the average selling prices (ASP) increased for five categories and rose over 4% in total. Q3 compared to a year ago shows loses in euros and units for most categories. Euros and units were down 5% and 12% in total while ASPs increased for six of the eight categories and was up by 7% in total. Year-to-date compared to last show euros down 6% in total with losses in six of eight categories. Units are down for all categories, except slides, and 13% in total while ASPs rose in all categories and 8% in total.

Sales Growth by Switch Category

Q3 2012 Versus Q2 2012 Q3 2012 Versus Q3 2011 YTD 2012 Vs. YTD 2011
Category Euros Units ASP Euros Units ASP Euros Units ASP
DIP -11.4% -10.6% -0.9% -13.2% -22.5% 12.0% -3.2% -11.4% 9.2%
Keylock 1.6% -29.0% 43.1% -20.3% -15.3% -5.9% -11.4% -12.1% 0.8%
Push Button 0.7% 10.9% -9.2% -13.4% 34.4% -35.5% -11.9% -13.5% 3.2%
Rocker 6.5% -1.8% 8.5% -20.6% -24.6% 5.4% -17.1% -25.1% 10.7%
Slide 12.6% 0.8% 11.6% 24.8% 18.5% 5.3% 11.7% 5.7% 5.7%
Snap Action -6.9 % -6.4% -0.6 % -1.6% -8.3% 7.3% -2.5 % -4.3% 1.9%
Tact -2.7% -9.9% 8.0% -8.7% -15.7% 8.4% -13.4% -19.2% 7.1%
Toggle 8.7% -2.2% 11.2% 24.5 % -6.5% 33.1% 9.2% -13.1% 25.6%
Total -4.1% -7.9% 4.1% -5.0% -11.6% 7.5% -6.1% -13.3% 8.3%

When compared to the last quarter total bookings were lower in euros for six of eight categories and in total euros were down 10%. Units moved down in seven categories and over 15% in total. The average booking price fell for four of eight categories but rose over 6% in total. Bookings in Q3 versus a year ago were up in euros for half of the categories and down units for the majority of categories. In total, euros increased by 3% and units fell by 7%. The total average booking prices compared to the same period a year ago was up 11% in total and in six of the categories. So far this year, sales euros are down 6% and 16% in units with losses in the majority of categories. Booking prices have risen for all but push button switches and 12% in total.

Bookings Growth by Switch Category

Q3 2012 Versus Q2 2012 Q3 2012 Versus Q3 2011 YTD 2012 Vs. YTD 2011
Category Euros Units ABP Euros Units ABP Euros Units ABP
DIP -12.9% -10.6% -2.6% 23.3% 15.7% 6.5% 1.2% 1.3% 0.0%
Keylock 59.4% 22.4% 30.2% -1.3% -26.0% 33.4 % -23.4% -33.8% 15.7%
Push Button -6.4% -7.5% 1.2% -8.8% 8.8% -16.2% -11.1% -13.4% -4.7%
Rocker -17.6% -13.2% -5.1% -32.6% -28.5% -5.7% -18.9% -20.6% 2.1%
Slide 8.9% -6.3% -16.2% 13.5% -8.2% 23.6% 17.4% 7.2% 9.6%
Snap Action -9.6% -15.6% 7.2% 11.8% 8.3% 3.2% -0.5% -5.5% 5.3%
Tact -11.6% -12.7% 1.3% -5.3% -13.5% 9.4% -18.2% -23.6% 7.0%
Toggle -33.6% -8.7% -27.3% 10.3% -8.0% 19.9% 12.8 -11.3% 27.2%
Total -10.0% -15.6% 6.5% 3.3% -7.3% 11.3% -5.9 -16.0% 12.1%

The graph below shows total quarterly indexed sales and bookings in euros and units for the reported data since Q3 CY 2010. Sales and booking euros and units moved higher starting in Q3'09 and continued moving up until a dip in Q4'10. Sales and booking euros set two year highs in Q1'11 then all but sales units moved lower the next two quarters. All measures except booking euros moved lower in Q4'11 and improved in Q1 and moved lower again in Q2 and Q3 of last year.

schwert_chart1.jpg

Book-to-bill euros peaked in Q4'10 then generally declined to a low in Q3'11 improved the next two quarters only to move down in Q2 and Q3 of last year. The unit ratio also saw its best mark in Q4'10 then fell to 0.8 in Q3'11 and recovered in Q4 and Q1 then went down in Q2 and Q3. The ABP-to-ASP ratio fell below 1.0 in the fourth quarter of 2010 but has been above 1.0 for most of the last two years.

schwert_chart2.jpg

For the period, sales and booking prices generally trended higher.

schwert_chart3.jpg
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Featured Contributor:
Michael Schwert

Michael Schwert

Michael is the founder of Cumulus, Inc. He has more than 30 years of marketing and sales as well as design experience in the electronic and electrical component industry. Prior to founding Cumulus, he was Director of Marketing for Cherry Electrical Products and held other marketing management positions with Panduit, BRK Electronics, and Ideal Industries.

Cumulus provides market information and consulting services for the global electronic components industry. The company offers three publications: Switch Tracks, a quarterly report with market information on component switches; the Relay Report, a quarterly report with market information on component relays; and Market Notes, a monthly report on sales, bookings, and business conditions in the relay and switch market. Cumulus also manages projects that help leading global suppliers in the relay and switch industry to develop new products and reach new markets.

Schwert provides MarketEYE with monthly articles that include timely and accurate market information for the electromechanical component sector of the electronics industry.

Cumulus Inc.

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