Würth Group increases operating result 2013
- Sales stagnate (adjusted year-over-year comparison)
- Markets in southern Europe continue to burden the business development of the Würth Group
- Extensive investments in logistics and infrastructure
Künzelsau. In the business year 2013, the Würth Group generated sales of EUR 9.74 billion, which is less than in the previous year (2012: EUR 9.98 billion). According to the preliminary annual financial statement, this corresponds to a decline by 2.4 percent. After adjusting for the Group's solar activities, which have been abandoned in 2012, the overall decline in sales comes to 0.1 percent. The solar business had generated sales of about EUR 250 million in 2012.
While the companies in Germany achieved an adjusted sales plus of 1.7 percent compared to the previous year, the adjusted sales result abroad was 1.5 percent below last year's level. This is above all due to the difficult economic situation in the southern European markets that are of great importance for the Würth Group.
Thanks to the good development of individual companies such as Adolf Würth GmbH & Co. KG, Arnold Umformtechnik GmbH & Co. KG or the Würth Elektronik Group, the operating result will range between EUR 440 and 450 million (previous year: EUR 415 million), which constitutes an increase of at least 6 percent. The number of employees went down by 2.5 percent to 63,571 worldwide (previous year: 65,169). Here, it has to be mentioned that a great part of the staff reduction was a result of the sales development abroad.
The Würth Group's investment volume remained on a high level, with more than EUR 400 million invested in 2013. The new distribution center of Adolf Würth GmbH & Co. KG at the location in Gaisbach as well as the extension of the branch office network of the Würth Group are two examples. About 90 new branch offices were opened worldwide.
Robert Friedmann, Chairman of the Central Managing Board of the Würth Group, summarizes the past business year as follows: "The result increase shows that the Würth Group stands out due to its strong profitability in spite of the difficult general conditions and that the measures taken to increase productivity and reduce fixed costs are bearing fruit. The positive sales development in the fourth quarter of 2013 makes us optimistic that we will achieve our plans in 2014."
Strategic optimization processes, the planned recruitment of 1,800 employees in the sales force and the further development of e-business will have a positive effect, just as the optimistic economic forecasts. In 2014, the Würth Group plans to generate a sales volume of more than EUR 10 billion and an operating result of over EUR 500 million.
With an increase in equity capital of about EUR 200 million to a total of EUR 3.4 billion, the Würth Group reports an equity ratio of around 42 percent in the business year 2013, which constitutes a robust financial basis.
About the Würth Group
The Würth Group is the world's market leader in its core business, the trade in assembly and fastening materials. It currently consists of more than 400 companies in over 80 countries with a total of 63,600 employees on the payroll. Approximately 30,000 of them are permanently employed sales representatives.
In the Group's core business, the Würth Line, the sales program for craft and industry comprises more than 100,000 products – from screws, screw accessories and anchors over tools to chemical products and personal protective equipment.
The Allied Companies of the Würth Group, which either operate in business areas related to the core business or in diversified business areas, round off the range by offering products for DIY stores, material for electrical installations, electronic components such as circuit boards as well as financial services. They generate approximately 40 percent of the Würth Group's sales volume.