Sales for the Group reaches nearly 2.5 billion euros
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 bottom line is, 2018 was a good year for Endress+Hauser worldwide,” explained CEO Matthias Altendorf at the Group’s annual media conference in Basel. 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. Operating profit (EBIT) increased by 31.4 percent to 330.6 million euros; net income rose by 11.2 percent to 232.5 million euros.
US moves to number one
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.
Innovations for the digital age
Endress+Hauser’s growth was fueled by a wealth of innovations. The company brought 54 new products to the market last year. 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. A further driver of growth was process analysis.
Hundreds of new jobs
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. The company invested nearly 750 million euros within a five-year period, “all of which the Group financed through its own funds,” as CFO Dr Luc Schultheiss pointed out. In 2018, 158.6 million euros flowed into buildings, machinery and IT.
In the 2018 EcoVadis sustainability benchmark, Endress+Hauser scored 68 out of 100 points to place in the top 5 percent of its comparison group. “We feel it’s important for the future of Endress+Hauser to continue to have members of the shareholder family work at the company,” emphasized Supervisory Board President Klaus Endress. “This strengthens the bonds between the family and the company.” A decision was made to allow family members to work at all levels within the company.
Continued solid growth
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.