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European Switch Market Ends 1st Half of 2013 with Sales Down 1% and Bookings 5% Higher than 2012

11.06.2013 // Michael Schwert // Switches & Relays

Total reported sales for all switch categories in Europe for Q2’13 were 1% above the previous quarter and less than 1% better than observed in the second quarter of 2012. Sales units for Q2 came in 2% higher than units sold in Q1 and about equal to Q2’12.

The total booking dollars reported for all switch types in Europe for Q2’13 ran 5% less than the previous quarter and above Q2’12 by 9%. The second quarter’s book-to-bill ratio for euros was 1.067. Booking units in Q2’13 were 11% lower than Q1. The second quarter’s book-to-bill ratio for units was 0.930.

The second quarter versus the first shows higher rates for sales euros in all but the push button and snap action category and up 1% in total. Units increased 2% in total and for all eight categories while the average selling prices (ASP) increased in over half the categories but fell 1% in total. Q2 compared to a year ago shows gains in euros for six of eight categories and less than a 1% rise in total. Units were about equal in total with increases in six of eight categories. ASPSs decreased for five of the eight categories and were up slightly in total on a mix shift to higher priced switches. Year-to-date sales euros were down 1% with losses in half the categories while units were up 1%. Selling prices were down for most categories and over 1% in total.

Sales Growth by Switch Category

Q2 2013 Versus Q1 2013 Q2 2013 Versus Q2 2012 YTD 2013 Vs. YTD 2012
Category

Euros

Units

ASP

Euros

Units

ASP

Euros

Units

ASP

DIP 13.0% 5.3% 7.4% -1.8% 0.2% -2.0% 1.9% 6.6% -4.3%
Keylock 2.7% 2.6% 5.5% 9.9% -18.2% 34.4% -9.7% -18.3% 10.8%
Push Button -2.0% 0.3% -2.2% 1.4% 4.5% -2.9% -5.5% 0.7% -6.1%
Rocker 2.5% 3.4% -0.8% 5.9% 1.4% 4.4% -3.8% 0.5% -4.3%
Slide 5.7% 33.0% -20.5% 6.2% 14.1% -6.9% 11.1% 19.8% -9.5%
Snap Action -1.9 % 0.6% -2.5 % -0.8% 1.4% -2.2% -2.4 % 0.3% -2.7%
Tact 5.9% 1.4% 4.5% 4.8% -0.9% 5.7% 3.4% -0.3% 3.8%
Toggle 2.8% 7.4% -4.2% 7.4 % 8.1 -0.7% 3.2% 1.2% 1.9%

Total

0.7% 1.6% -0.9% 0.5% 0.1% 0.3% -0.8% 0.7% -1.5%

When compared to the last quarter total bookings were lower in euros for five of eight categories and in total euros were down 5%. Units also moved down in six categories and 11% in total. The average booking price rose for five categories and 7% in total. Bookings in Q2 versus a year ago were up in euros for five categories and 9% in total. Units were up over 1% in total due to tact switches but down for most other categories. The total average booking prices compared to the same period a year ago was up 7% in total and in five of the categories. This year-to-date compared to 2012 shows booking euros and units up 5% with the average booking price nearly unchanged.

Bookings Growth by Switch Category

  Q2 2013 Versus Q1 2013 Q2 2013 Versus Q2 2012 YTD 2013 Vs. YTD 2012
Category

Euros

Units

ABP

Euros

Units

ABP

Euros

Units

ABP

DIP -17.9% -5.5% -13.2% -16.9% -9.9% -7.7% -4.9% -6.2% 1.4%
Keylock 0.1% -1.4% 1.5% 71.9% 65.0% 4.2 % 38.9% 54.6% -9.4%
Push Button -12.6% -22.2% 12.2% -0.5% -17.2% 20.1% -2.4% -2.7% -0.1%
Rocker 16.1% -0.9% 17.2% 14.9% -7.3% 24.0% 1.4% -7.7% 9.9%
Slide -2.8% 17.9% -17.5% 14.2% 1.1% 13.0% 30.1% 13.1% 12.8%
Snap Action -6.0% -20.1% 17.7% 15.4% -3.4% 19.4% 7.5% 2.1% 5.5%
Tact 9.2% -5.5% 15.6% 5.0% 9.1% -3.8% 1.7% 10.2% -7.7%
Toggle -18.7% 2.0% -20.3% -25.9% -9.6% -18.0% -7.1% -13.9% 7.2%

Total

-4.8% -11.2% 7.3% 9.0% 1.5% 7.5% 5.2% 5.0% 0.3%

The graph below shows total quarterly indexed sales and bookings in euros and units for the reported data since Q2 CY 2011. Sales and booking euros and units were at two-year highs in Q2’11 then all moved lower the next two quarters. All measures improved in Q1’12 but moved lower again through the rest of the year. The first quarter of this year had a nice move up for all metrics. In the second quarter sales improved slightly as bookings decreased.

chart-1.jpg

Book-to-bill euros generally declined to a low in Q3’11 improved the next two quarters only to move down in Q2 and Q3 of last year then improved until last quarter’s dip. The unit ratio hard a similar but lower path than the euros. The ABP-to-ASP ratio has been above 1.0 for the last two years.

chart-2.jpg

For the period, indexed sales and booking prices generally trended higher but may now be turning lower.

chart-3.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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