In 2017, Endress+Hauser saw its sales and profits increase. The Group benefited from an improved economic climate in its sector and opened up new perspectives with a host of new products, including the first digital services. A large number of new jobs, high levels of investment and significant progress in the area of sustainability underline the balanced growth of the Group.
In 2017, net sales rose to €2.241 billion, which corresponds to an increase of 4.8 1TP6Q. The rise of the euro against most currencies, however, distorts the picture. " In local currency, we grew by 6.5 % and in the instrumentation business by 8.0 %This is the first time that a company has been able to achieve this goal," explained CEO Matthias Altendorf at the press conference to present the group's financial results in Basel. We are convinced that Endress+Hauser has strengthened its market position. "
Development based on a solid foundation
In 2017, strong household consumption, stabilizing oil prices as well as low interest rates resulted in a recovery of investments in the process industry. " Companies need to develop their capacities and want to produce in a competitive, safe and ecological way "said Matthias Altendorf. As one of the world's leading suppliers of process and laboratory measurement instrumentation, automation solutions and services, Endress+Hauser supports them in this regard.
" We performed well in virtually every region and industry "Matthias Altendorf emphasized. China and the USA, two of the three largest markets, showed dynamic growth; in Germany, the number one market, sales figures at the end of the year still lagged behind the growing order book. The good development was based on a broad base covering various sectors. The oil and gas industry also contributed to the growth. The energy and power plant sector expanded primarily in the area of renewable energies.
Impetus from innovation and digitalization
Technical innovation has given our business strong impulses. Last year, Endress+Hauser launched 57 new products and 571 device options. Expenditure on research and development increased to €170.7 million, an amount that corresponds to 7.6 % of sales. A total of 261 first patent applications worldwide testify to the importance of innovation within the group, and the portfolio now includes 7479 patents and industrial property titles.
Digitization is playing an increasingly important role. " Our customers have understood that the Industrial Internet of Things is changing the value chainsaid Matthias Altendorf. The new transparency allows processes to be optimized and efficiency to be increased. "Concepts for Industry 4.0 are taking concrete shape. For example, Endress+Hauser has launched a first digital service for analyzing and managing the installed base of devices.
Three company acquisitions strengthen the Group's offering in the areas of measurement and analysis of quality-related parameters. SensAction's systems measure concentrations in liquids, IMKO Micromodultechnik's sensors detect moisture in solids. Blue Ocean Nova's technology allows spectroscopic processes to be integrated directly into the production process. In the laboratory sector, Analytik Jena is focusing even more on its core business, bioanalytical instruments and systems.
Better results
Endress+Hauser improved its operating result (EBIT) by 15.0 % to EUR 251.7 million. Despite the high costs of currency hedging, earnings before taxes (EBT) increased due to one-off effects from the sale of a stake by 24.9 % to 275.6 million euros.
Income after taxes rose by 34.2 % to 209.1 million Euro. The effective tax rate was significantly lower than in the previous year, at 24.1 %, due to a change in the local profit mix. " We are a good taxpayerMatthias Altendorf emphasized, it is part of our social responsibility. "
Strong finances and high investments
The operating profitability ratio (ORR) increased by 2 points to 12.3 %. The equity ratio fell by 0.3 percentage points to 70.2 % due to exchange rates. As a result of the change in balance sheet principles, it is 2 to 3 percentage points lower overall than in previous years. Nevertheless, the Group is very solid financially and can practically do without bank loans. "We are financing investments, company acquisitions and dividends from our own resources," said Luc Schultheiss, Group Chief Financial Officer.
Endress+Hauser has invested EUR 138.7 million worldwide. The third Chinese plant was built in Suzhou, providing additional production capacity for flow, temperature and analysis instruments. It also houses the world's largest and most modern calibration bench for flow meters. The new building of the Belgian marketing company shows how deeply rooted the concept of sustainability is: this modern building offers twice as much usable space with twice as little energy consumption.
A good mark for sustainability
" As a family business, we want to grow in a sustainable way This is a strategic indicator of our efforts in this area," said CEO Matthias Altendorf. The annual supplier sustainability assessment by EcoVadis is a strategic indicator of the efforts made in this direction. In 2017, Endress+Hauser scored 66 points out of 100, placing it among the top 2 % of companies assessed.
Last year, Endress+Hauser created 296 new jobs, significantly more than expected. At the end of 2017, a total of 13,299 people worked for the group worldwide. These job creations linked to growing demand took place above all in the areas of production and service. The largest number of jobs was created at the two flowmeter production centers in Reinach (Switzerland) and Cernay (France).
Good prospects for the current year
Endress+Hauser has started the year with a strong increase in its order book. The Group aims to increase its sales by several single-digit percentage points and expects to maintain profitability in the absence of exceptional effects. It plans to invest €223 million and create up to 500 new jobs worldwide. " Currently, order intake exceeds our targetsaid Matthias Altendorf. We expect 2018 to be another good year for Endress+Hauser "
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