19/07/10

A rating of the Würth Group confirmed again and outlook revised to “stable”

The international rating agency Standard & Poor’s again confirmed the A rating of the global market leader in the field of assembly and fastening material, Würth Group, and verified the company’s above-average liquidity. The outlook was revised from "negative" back to "stable".

Since 1995, the Group’s A rating has been confirmed every year, although the outlook was changed for a short time to "negative" in 2009 due to the economic downturn.

Another decisive factor for the good rating by the agency is the development of the cash flow. Over the past financial year, the Würth Group had based all important decisions on the principle “cash is king”. This way, the cash flow of the normal operative business could be increased by 84.3 percent to EUR 800 million (2008: EUR 434 million). This level has never been achieved before in the history of the Würth Group.

Standard & Poor’s justified its positive revision of the outlook with the Würth Group’s stabilizing market situation and the company’s excellent performance in the second quarter of 2010 which is expected to continue for the rest of the year.

In 2009, the equity capital of the Würth Group increased by EUR 83 million to EUR 2.60 billion. With an equity ratio of more than 40 percent, the Würth Group is much better off than the average European trading businesses. The Group is aiming for an operating result of more than EUR 350 million for the year 2010 and it appears to be on the right track to achieve this. At 196 million Euros, the Group’s operating result in the first half of 2010 was almost doubled compared to the same period of last year.

This good rating is not only evidence of a positive liquidity rating, but also an indicator of the continuous and successful development of the family business that is well known for its strong market position and the stability of its business model.

About the Würth Group

The Würth Group is the world’s market leader in its core business, the trade in assembly and fastening materials. The company currently consists of more than 400 companies in 84 countries and has about 59,000 employees on its payroll. Over 29,000 of these employees are permanently employed sales representatives. In 2009, the Würth Group attained a sales volume of EUR 7.5 billion.

In its core business, the Würth Line, the sales range for trades and industry comprises over 100,000 products: From screws, screw accessories and anchors via tools to chemical technical products and personal protection equipment.

The so-called Allied Companies operate under their own name in diversified business fields and markets adjacent to the core business. They sell for instance products for DIY stores, material for electrical installations, electronic components (e.g. circuit boards), financial services and solar modules. They generate approximately 42 percent of the Würth Group’s sales volume.