News

Witzenmann holds its own in the difficult environment

02.11.2016

The Pforzheim-based family-owned company reports a slight drop in sales, but looks to the future with confidence. An international presence, product diversity and innovative strength safeguard the market position.

Through to the end of September, the Witzenmann Group generated 427 million € in revenue. The figure is 2.2% (rate-adjusted: -1%) down on the previous year and 9.8 million € below forecast. Moderate growth is reported in Germany and Europe, Asia remains stable and revenue in the USA has fallen.

Automotive business with the largest share
Business with the automotive industry continues to run well. More than half the revenue was generated in this business segment. In Europe and Asia, the number of passenger car registrations continues to rise. The demand for vehicles is being driven by a high willingness to spend and the low price of fuel. As a competent development partner, Witzenmann supports its customers worldwide with components for realising fuel-efficient drive concepts and achieving the increasingly stringent environmental standards.
The situation in the construction and agricultural machinery market is somewhat different. It is closely associated with the extraction and processing of raw materials. The low prices of oil, gas and agricultural raw materials are negatively impacting the business. All important customers in this sector are having to absorb significant falls in demand.

Stagnation in the broader manufacturing industry
The markets of the manufacturing industry in general are also suffering from the low raw material prices. The construction of new plants or the modernisation of industrial complexes, for example, are being postponed. For some time now, the expansion joint business has experienced a lack of large projects in power station construction, as well as in the chemical, petrochemical or steel industries. The revenue is therefore below forecast. Nonetheless, incoming orders are following an upward trend.

Growth in employment worldwide
At the end of September 2016, some 4,068 people worked for the Witzenmann Group across the globe. This is equivalent to a 3.2% increase from the end of 2015 (3,941 employees). Approximately 48% of these employees work at the Group's German companies, 31% being employed in other European countries and around 21% at the subsidiaries in America and Asia. As the competence and control centre for the the Group as a whole, The Head Office in Pforzheim handles all the important tasks.

Financially well positioned
As usual, the earned profit remains mainly within the company. The equity ratio is currently just under 59%. At 7.4%, the rate of investment remains high.

Strategy aligned to the future
Taking the technology and market trends into account, the Witzenmann Group gears its business to the future. Despite the growing trend for electromobility, the conventional drive still holds tremendous potential, not least due to the increasingly stringent emission standards. Regardless of the drive type concerned, however, the products and applications offer diverse potentials for media routing, including for vehicles of the future.
Witzenmann uses its international locations to develop new business segments in the industry as a whole, in aerospace, rail and building equipment. Digitalisation is creating huge opportunities to profitably expand the business model, in the sale of standardised quality products or with special configurators for example. Moreover, Witzenmann innovation management will develop new products, applications and services going beyond the potentials described.

Information

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