Endress+Hauser 2018 results ‘exceeded the industry average’
Industrial measurement technology and automation solutions provider Endress+Hauser has released its full-year 2018 results, experiencing strong growth across all regions, sectors and product areas.
Throughout 2018, the group increased sales and profits, made considerable investments and created hundreds of new jobs around the world.
“The bottom line is, 2018 was a good year for Endress+Hauser worldwide,” said CEO Matthias Altendorf.
Net sales increased by 9.5% to €2.455 billion, despite the group facing strong headwinds from foreign exchange rates. Expressed in local currencies, sales grew by 12.7%.
Luc Schultheiss, chief financial officer at Endress+Hauser, added that the group’s performance “exceeded the industry average”.
Operating profit (EBIT) increased by 31.4% year-on-year to €330.6 million, while profit before taxes (EBT) rose by 14.6% to €315.7 million. Net income for the group increased by 11.2% to €232.5 million.
Strongest growth for the company was seen in the Americas: “After 65 years, the US replaced Germany as out largest sales market,” Altendorf added. China also grew at a ‘double-digit pace’; “If this trend continues, China could soon take over the top spot,” he noted.
During 2018, the company brought 54 new products to market and filed 287 initial patents, bringing the total to 7.800 patents and other intellectual property rights.
Around one-third of the new patents were related to the Industrial Internet of Things, digital communications, diagnostics and electronics, with digitalization “penetrating all areas,” according to Altendorf.
Job growth for the group was also noted in the full-year results. At the end of 2018, Endress+Hauser had a global workforce of 13,928, an increase of 629 compared to the end of 2017.
Investments of almost €750 million have been made by the company within a five-year period, “all of which the company financed through its own funds,” said Schultheiss.
In 2018, €158.6 million was invested in buildings, machinery and IT, with the two largest products undertaken by the group involving the expansion of plants in Reinach, Switzerland and Maulburg, Germany.
The company is also undertaking a large project in the US that will combine the Gulf region sales, service and support organisations in Houston, Texas.
In its outlook for 2019, despite a strong start to the year with strong orders and net sales, the company expects this trend to cool off in the second half of this year.
“We’re still anticipating solid growth in the mid-single-digit range,” said Schultheiss, who added that the company plans to invest €260 million this year, with 500 new jobs to be created.