2018 Endress+Hauser Report: USA becomes biggest sales market | Automation.com

2018 Endress+Hauser Report: USA becomes biggest sales market

2018 Endress+Hauser Report: USA becomes biggest sales market

May 24, 2019 - Endress+Hauser experienced strong growth across all regions, sectors and product areas in 2018. The ongoing digitalization of the industry and positive development on the international markets provided impetus. The Group increased sales and profits, invested heavily and created hundreds of jobs worldwide.

The Group increased net sales by 9.5 percent to 2.455 billion euros, despite facing strong headwinds from foreign exchange rates. Expressed in local currencies, sales grew by 12.7 percent.

The business was bolstered by a strong economy in the process automation sector. Continued high demand from private consumers, as well as recovering oil and raw material prices, contributed to the solid growth. After years of somewhat restrained investment activity, large-scale projects made a return. According to Chief Financial Officer Dr Luc Schultheiss, Endress+Hauser’s performance “exceeded the industry average.”

Endress+Hauser made excellent progress in Europe. Business was dynamic even in Africa and the Middle East as well as in the Asia-Pacific region. The strongest growth was seen in the Americas, however. “After 65 years, the US replaced Germany as our largest sales market,” reported Matthias Altendorf. China also grew at a double-digit pace. “If this trend continues, China could soon take over the top spot,” added the CEO.

Foreign exchange rate fluctuations not only slowed down sales growth, but also stifled cost structures, despite notable cost increases on the materials side. Operating profit (EBIT) increased by 31.4 percent to 330.6 million euros. Even though no one-off income was recognized in 2018, in contrast to the prior year, profit before taxes (EBT) still rose by 14.6 percent to 315.7 million euros. Return on sales (ROS) climbed 0.6 points to 12.9 percent.

Net income rose by 11.2 percent to 232.5 million euros, which reflects an effective tax rate of 26.4 percent which increased over the prior year due to a change in the composition of the profit. The equity ratio reached 71 percent, an increase of 0.8 points. The Group has no considerable bank liabilities.

Endress+Hauser’s growth was fueled by innovations. The company brought 54 new products to the market last year. Research and development expenses climbed to 184.2 million euros, representing 7.5 percent of sales. The company filed 287 initial patents in 2018. At the end of the year, Endress+Hauser held nearly 7,800 patents and other intellectual property rights.

About one-third of the new patents were related to the IIoT, digital communications, diagnostics and electronics. Apart from 1,000 developers active in the Group’s centers of competence, various start-ups established by the Group are also busy working on products, solutions and services for the digital age. Endress+Hauser is furthermore collaborating closely with industry partners such as software specialist SAP.

The positive development was reflected in the creation of numerous jobs. At the end of 2018, Endress+Hauser had a global workforce of 13,928, an increase of 629 over the prior year. Hiring was especially strong in production and production-related areas, as well as in the service units. The company created 200 new jobs in the Basel region alone.

Endress+Hauser invested nearly 750 million euros within a five-year period, “all of which the company financed through its own funds,” as CFO Luc Schultheiss pointed out. In 2018, 158.6 million euros flowed into buildings, machinery and IT. The two largest projects involve the expansion of the plants in Reinach, Switzerland and Maulburg, Germany. The Group is also undertaking a large project in the US that will bundle the Gulf region sales, service and support organizations in Houston, Texas.

Endress+Hauser got off to a good start in 2019. Incoming orders and net sales for the Group are tracking well above prior year levels. The company nonetheless expects this trend to cool off in the second half of the year. “We are still anticipating solid growth in the mid-single-digit range,” said Luc Schultheiss. According to the CFO, the company plans to invest 260 million euros this year, and assuming the business continues to perform well, 500 new jobs will be created worldwide.

Endress+Hauser is a specialist in measurement instrumentation, services and solutions for industrial process engineering. The Group employs approximately 14,000 personnel across the globe, generating net sales of over 2.4 billion euros in 2018.

Did you Enjoy this Article?

Check out our free e-newsletters
to read more great articles.

Subscribe Now
Back to top
Company Portal: 
Endress+Hauser, Inc.


Posted in:
Industry

MORE INDUSTRY NEWS

VIEW ALL

RELATED