Financial results: Endress+Hauser shows confidence
Group holds its ground despite pandemic and starts 2021 with momentum
Endress+Hauser weathered the 2020 pandemic year well. Despite declining sales, the company, which specializes in measurement and automation technology, maintained profitability at a high level and strengthened its financial power. The Group created new jobs and expanded its global sales and production network. CEO Matthias Altendorf sees Endress+Hauser as well positioned, both for uncertain times and for economic recovery.
Strong currency effects
The Group’s sales fell by 2.8 percent to 2.577 billion euros in 2020. However, this figure is heavily influenced by exchange rate developments. “In local currencies, we are above the industry average and have performed well in the market”, said CFO Dr Luc Schultheiss. Endress+Hauser’s profitability did not suffer. Return on sales (ROS) remained unchanged at 13.1 percent. Net income fell by 4.1 percent to 254.9 million euros. The equity ratio increased by 1.4 points to 77.0 percent.
Employment on a stable level
The number of employees grew by 126 to 14,454 worldwide in 2020. Virtually all apprentices were offered a position after completion of their training. Endress+Hauser aims to increase the share of women in management positions to around 30 percent by 2030 – double the current proportion. The company had already significantly reduced its environmental footprint in recent years. In the pandemic year, carbon dioxide emissions fell further from 10.1 to 8.9 tonnes per million euros of sales.
Investments and innovation
Endress+Hauser pushed ahead with major capex projects, investing 205.9 million euros (10.9 percent less than the previous year) primarily on production. The company spent 195.1 million euros on R&D, equating to 7.6 percent of sales. Endress+Hauser filed patents for 276 inventions for the first time. The Group’s innovative strength is intact: 40 new products were launched in 2020; in the current year, the figure is expected to be 74.
“The shareholder family is pleased and proud that Endress+Hauser has come through this difficult year so well,” said Supervisory Board President Dr Klaus Endress. The company had announced at the beginning of the pandemic that it would avoid short working hours if possible and would not lay off any employees due to the crisis. For the Supervisory Board President, this was an important signal. “There was a lot of solidarity in the company that helped us in the pandemic,” Klaus Endress emphasized.
Good start to the current year
In 2021, Endress+Hauser aims to grow in the mid-single-digit percentage range. The Group started the current year with momentum. In the first three months, incoming orders were above the company’s own targets as well as above the still strong first quarter of 2020. Exchange rates are again weighing on consolidated sales. In addition, the company expects lower profitability, as many savings of the last year were one-offs.