Business performance

After a very successful financial year in 2021, the Tornos Group carried the momentum forward and confirmed its good results in 2022. Despite the still very challenging environment with frequent disruptions in the global supply chain and cost increases, Tornos was able to further increase net sales and–if the special effects are excluded–also profitability. The Group is starting the 2023 financial year with a record high order backlog, a good cost structure, a product portfolio that is excellently tailored to customer needs, and broad diversification in various industries and geographical markets.

In the year under review, Tornos benefited again from the high inventory levels that had resulted in substantial value adjustments in the 2020 financial year, and which were largely scaled back again in 2021 as a result of the good level of business. In 2022, Tornos wrote back further value adjustment provisions amounting to CHF 4.8 million. Owing to changing market conditions and the usability of its inventories, Tornos has introduced a refined method for value adjustment provisions that takes even better account of the specific circumstances at Tornos and reacts even more appropriately to changes in material consumption. You can find further details on page 43 (note 2.9 Inventories) and page 50 (note 4.1 Inventory obsolescence) of this Annual Report.