Endress+Hauser has achieved record-high figures in net sales, employment, profits and equity. Despite ongoing global economic uncertainty, the measurement specialist group, which has headquarters in Reinach, Switzerland, and operates worldwide, expects this positive trend from 2012 to continue this year.
Speaking at the financial results’ presentation on 28 May 2013 in Basel, Switzerland, group CEO, Klaus Endress, says“2012 was not an easy year”. In some markets, sales dropped, but in many the group recorded growth. “In the end, we only just missed our ambitious targets.” Undeniably, a little luck played a role. The company remained largely unaffected by currency influences; developments in the foreign exchange rate even slightly supported the business. But above all, Endress+Hauser made the best possible use of the opportunities that the past year offered – despite all the risks. The company increased net sales by 11% to almost €1.7 billion (euros). Despite higher depreciation and amortization, the operating profit (EBIT) almost kept pace, increasing by 10% and ultimately reaching €273 million. Owing to a higher tax rate, net income rose by only 3% to €183 million, which is nevertheless a new record. Development across a wide base Endress+Hauser showed growth across all regions, with exceptionally good developments in the Americas. “In the US, this was the third good year in succession for us,” explained COO Michael Ziesemer, the CEO’s deputy. Low energy prices have sparked reindustrialisation in the US. In contrast, business in China showed disappointing development. This was, as Ziesemer explained, “an unusual experience” after years of dynamic development. “Key drivers behind our growth are megatrends such as energy, resources and efficiency, food, water and demography,” emphasized Ziesemer.
Ambitious targets for 2013
Endress+Hauser has set itself ambitious targets for 2013. Net sales are expected to grow by 10% to almost €1.9 billion. For operating profit and net income, the company expects a moderate decrease. This is where investments in buildings and plants, software and IT of a record-high €160 million come to bear, as well as increased expenditure in research and development. A total of 550 additional jobs are to be created by the end of 2013. At present, Ziesemer confirmed that figures are slightly “below budget”. Whereas sales in China are again showing strong growth, the development on the US market lags behind expectations. In only eight years, Endress+Hauser has more than doubled its net sales. “The opportunities for us have grown, along with the risks,” emphasized Endress. In order to make the company fit for future challenges, sales support has been reorganised at group level. “We don’t expect 2013 to be an easy year,” stressed Endress. “The problems that have made our world so insecure and changeable still exist.” This was one of the reasons why the change at the top of the company was announced so early. Endress will move to the Supervisory Board in 2014 where he will succeed Klaus Riemenschneider as president; his successor as CEO will be Matthias Altendorf, currently MD of the group’s largest production centre in Maulburg, Germany. Endress said: “We have taken significant steps in terms of organisation, strategy and personnel to set the course that will lead the company towards a successful future.”
