Strong growth in net sales and a net profit was a key feature of the 2008 business year for the Endress+Hauser Group. However, towards the end of the year the Group began to feel the effects of the global economic crisis. Chief executive officer, Klaus Endress, still looks ahead with confidence, “We must emerge stronger from the economic crisis.”
A ‘divided year’ was how Klaus Endress described 2008 at the annual media presentation in Basel, Switzerland. “For a long time it looked like yet another ‘best year ever’ for Endress+Hauser,” said the CEO. However, the initially good double-digit growth gradually flattened. With net sales of 1,211 billion euros and a growth of 8,8%, the Group still exceeded its ambitious targets. “We have once again grown at a stronger rate than the market,” he stressed. “All in all, the process automation industry grew by 4 to 5%.”
Many industries contributed to the good growth, pulp and paper being the exception. Oil and gas, power and energy, renewable energies and shipbuilding developed particularly strongly. “Questions of energy efficiency and environmental protection concerned our customers,” reported chief operating officer, Michael Ziesemer. “Although instrumentation for process engineering still formed the core business, services and automation solutions increased significantly.”
Improved operating results, increased investments
Endress+Hauser says it can depend on an extremely solid balance sheet having increased its equity capital ratio by 2,6 points to 61,3%. Although bank loans rose by 14,3 million to 77,4 million euros, liquid assets increased even more strongly, by 41,0 million to 182,3 million euros. “We could repay all credits and still have sufficient liquidity,” explained chief financial officer, Fernando Fuenzalida. “That ensures our independence and allows us to follow our long-term strategy.”
In 2008, Endress+Hauser invested the record sum of 106,8 million euros (up 12,6%) in new buildings and plants. Work on current building projects such as new buildings for the sales centres in Poland and the Netherlands will continue. The sales centre in Shanghai, China, will be extended to include a logistics facility. “We have invested almost 400 million euros in the last five years,” stated Fernando Fuenzalida.
Endress+Hauser must maintain its strategic positions
“On no account will we carelessly abandon strategic positions,” emphasized Klaus Endress. The company will continue to invest in the latest production technology and focus on reinforcing the sales and service network and training. Investments totalling 100 million euros are planned.
Furthermore in 2008, 200 new patent applications gave evidence to the innovative strength of the Endress+Hauser Group. The Group spent 88,8 million euros on R&D – 17,5% more than in 2007. This equates to 7,3% of net sales.
“Endress+Hauser has always emerged strengthened from difficult times,” the CEO recalled. “We will do everything in our power to ensure that we succeed this time too. We have a wealth of excellent products and are working at full strength on the development of new innovations.”
The company is backed by the culture of a strong family business. Klaus Endress: “With the right attitude and a clear focus on the needs of our customers we can cope well, even with such a difficult year as 2009.”
For more information contact Hennie Blignaut, Endress+Hauser, +27 (0)11 262 8000, [email protected], www.za.endress.com
| Tel: | +27 11 262 8000 |
| Email: | [email protected] |
| www: | www.endress.com |
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