11/05/06

Business Year 2005 of the Würth Group

  • The sales volume of the Würth Group grows by double-digit figures to the new record mark of EUR 6.9 billion
  • The operating result grows disproportionately to the growth in sales to EUR 455 million
  • The number of employees has risen to over 50,000

Künzelsau/Hohenlohe Region. In 2005, the Würth Group celebrated its 60th company anniversary and continued writing successful company history. The business year 2005 could be closed with a new record result.

The worldwide leading trading company for fastening and assembly technology located in Künzelsau (Region of Hohenlohe) presented the annual financial statement of the Group for the financial year 2005 at the annual press conference in Stuttgart on Thursday, 11 May 2006.

Operating Result at New Record High

In 2005, the Würth Group increased its total sales by 11.5 percent to the new record of EUR 6.9 billion. Adjusted for exchange-rate effects and company acquisitions the organic growth of the 351 companies of the Würth Group amounted to 8.3 percent. As against the previous year, the operating result increased significantly and grew disproportionately to the sales by 15.2 percent to EUR 455 million (preceding year: EUR 395 million). "Thanks to its unconditional sales orientation and a high degree of consulting competence, the Würth Group grew soundly in 2005, too. Our unconditional eagerness to sell is our driving force", was the comment of Robert Friedmann, Chairman of the Board of Directors of the Würth Group, on the Group balance sheet for the business year 2005.

German and International Group Continue to Be on Growth Course

Despite the slow recovery of the German economy the German Group achieved an extremely pleasing sales development in 2005. Growth amounted to 10.1 percent, sales went up to EUR 2.8 billion. Adolf Würth GmbH & Co. KG distinguished itself in the individual financial statement with sales of EUR 871 million and generated an operating result of EUR 51 million. For the first time in many years we managed to bring up the share of the parent company in the overall result of the Würth Group to over ten percent.
Abroad, the Würth Group also closed the financial year 2005 successfully. Attaining an increase of 12.4 percent to EUR 4.1 billion in sales, the international Group exceeded the four-billion-euro mark for the first time ever. Adjusted for the effects of the acquisitions and the exchange-rate fluctuations the international Group with 9.8 percent almost achieved two-digit growth.

Capital Expenditure Covered by Cash flow and Equity Ratio Increased Further

The corporate motto "growth without profit is lethal" was the driving force behind the Würth Group in the financial year 2005 again: Apart from the two-digit sales growth the profit was pushed up. This is clearly an indicator for sound growth. The positive development of the return on sales over the past few years also underlines this. The 6.6 percent achieved by the Würth Group in 2005, is a record in the five-year comparison. The Würth Group attained a cash flow from the operative business of EUR 455 million in the financial year 2005 (preceding year: EUR 339 million), from which the entire investment of EUR 310 million (previous year: EUR 237 million) were covered. The equity grew to EUR 2.0 billion (preceding year: EUR 1.7 billion). Thus, the equity ratio amounted to 49.5 percent (previous year: 47.4 percent) and together with the equity return of 24.2 percent it demonstrates the financial stability of the Würth Group.

Recruitment of the 50,000th Employee

In the business year 2005, the Würth Group did not only expand in the field of sales but also concerning its number of employees. Another milestone was taken when the 50,000th employee was hired in the month of September. At the end of 2005, the Würth Group had 50,767 employees on its payroll. That was 3,794 employees or 8.1 percent more than in the previous year. The number of employees went up by 1,273 through company acquisitions. 2,521 new jobs were created in the company through organic growth. Due to the acquisitions the number of in-house staff grew faster (23,279 / +11.4 percent) than the number of sales representatives (27,488 / +5.4 percent) in the past financial year. The number of employees grew fastest in the international companies, namely by 10.5 percent to 36,504 (previous year: 33,032). In the period under review, 14,263 employees worked in the German Group. This corresponds to an increase of 2.3 percent or 322 employees.