Endress+Hauser has stood its ground in the market in an uncertain economic environment. The Swiss Group increased net sales in 2014 by 11% to €2.013 billion and achieved a net income of €192 million. The company invested over €126 million worldwide, and staff complement grew to 12 435.
In his first year as CEO, Matthias Altendorf delivered good figures despite all the unpredictable external influences that had not been considered in the budgets. For the first time in its history, over half the Group’s net sales were generated outside Europe.
COO Michael Ziesemer reported that business was also good on the American continent (17,7% growth in sales), now the second largest market for Endress+Hauser. Germany, the country with the highest sales volume, also improved significantly – as did Europe in general (8,0 %). Development in Asia was inconsistent (11,7 %) as growth slowed in China, the third highest turnover market, whilst in southeast Asia sales grew dynamically. While in Africa and the Middle East (10,4 %), political instability in individual countries was noticeable.
Analytics showed the strongest market development. “This mirrors the needs of our customers to determine product characteristics and quality in the process,” explained Altendorf. He sees the strategic decision to strengthen competence in process analysis as confirmed, particularly through the acquisition of Analytik Jena. Endress+Hauser currently holds over 92 % of the German laboratory specialist’s shares.
Increased employment, higher capital expenditure
At the end of 2014 Endress+Hauser employed 12 435 people globally – 516 more than the previous year. The company invested €126 million and increased the production of flow measurement technology amongst others. The location of the Group’s IT service provider was also modernised and expanded.
Profitable and financially strong
For the first time Analytik Jena’s figures have been included in the Group’s complete financial year. This increased net sales, which would have grown by 6% without the acquisition, but at the same time put pressure on the earnings, according to CFO Dr Luc Schultheiss. The return on sales (ROS) edged down by 1,3 points to what is still a very acceptable 13,6%. Productivity – defined as net value added in relation to personnel expenditure – decreased slightly from 1,42 to 1,37.
The CFO emphasised the robust financing of the family-owned Group. Cash and cash equivalents grew to €444 million, whilst at the same time bank loans decreased to €45 million. Equity ratio grew by 0,5 points to 68,3%. This increase would have been even greater but for the revaluation of retirement benefit obligations against the background of low interest rates.
Current year clouded by strength of Swiss franc
The influence of foreign exchange rates was small in 2014. “The Endress+Hauser Group as a whole can cope with the strengthening of the franc,” emphasised Schultheiss. However, he anticipates lower profits due to the pressure on the Swiss companies in the Group.
Endress+Hauser has set itself the target of increasing net sales by almost 10% to €2,2 billion in 2015. The Group plans to invest €179 million and create 600 jobs. Equity ratio is to be increased to over 71%.
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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