Ludwigsburg/Germany, April 24, 2018 – in the financial year for 2017, MANN+HUMMEL increased sales revenue to reach 3.9 billion euros (2016: 3.48 billion euros). On a currency adjusted basis this corresponds to a growth of 11.8%. The EBIT level at 185.1 million euros (2016: 115.7 million euros) has improved significantly. The EBIT margin was 4.8% (2016: 3.3%).
MANN+HUMMEL CFO Emese Weissenbacher was generally satisfied with the annual result: "As announced last year, in the course of 2017 we were able to further increase sales revenue and also substantially improve our annual result." EBIT increased by 69 million euros to reach 185.1 million euros. After adjustment for extraordinary effects from non-scheduled impairments to the amount of 14.2 million euros, the operating result amounted to 199.3 million euros.
With filtration into the future
"We develop and manufacture products with innovative technology for the health and mobility of people. In this process the focus is very clearly on the core expertise of the company, namely filtration. Filtration separates the useful from the harmful and is a key technology. This applies to numerous technical and industrial applications and also to clean air and water," said Kai Knickmann, General Manager Original Equipment, during the presentation of the figures for the financial year of 2017 on Tuesday in Ludwigsburg/Germany. "The automotive and mechanical engineering industries are undergoing a fundamental transformation. The same is true for our business model. The drivers are alternative transportation solutions, digitalization and the growing importance of sustainability. The shaping of mobility and industry of the future has seldom been as interesting as it is today, or presented as many opportunities", he added.
Employee numbers in 2017
In 2017 MANN+HUMMEL employed an average total of 20,535 people at all its locations. In order to take the high dynamism of the automotive industry better into account, MANN+HUMMEL plans to force project-based cooperation within the group: "We are strengthening the use of interdisciplinary teams with a high level of independence for decisions and cooperation and we are working even closer together at an earlier stage with our customers and suppliers to implement attractive products much more quickly into series. But that also means that a project has to be quickly discontinued if the expectations cannot be met. Against this background, a start-up culture is also possible in a group." An example in this respect is the "Fine dust eater" project, where colleagues from different disciplines are cooperating unhindered by the constraints of existing structures.
Research and development
In 2017 the group invested 133 million euros in research and development. According to Knickmann, the company wishes to maintain its leading position in filtration, independent of whether this is in the fields of automotive, life sciences or environmental technology.
"The digitalization of the value chain and changes to drive systems are driving an exciting development", says Knickmann. "As a result there are new and interesting business areas for our company." But for a major break-through there will have to be a leap in battery technology. Based on the total fleet of vehicles, even in ten years the market share of electric vehicles is likely to be below 5%. "Every drive technology needs filtration", explains Knickmann. "We stand for a wide product range and openness to new technological ideas. Those who wish to change seamlessly from the monoculture of the combustion engine over to a monoculture of electric drives, will miss huge potential and future opportunities which we cannot possibly foresee today."
MANN+HUMMEL already offers a wide range of products for alternative drives. The offer is constantly being extended to include new applications and the filtration of air and water. In this respect in January 2018 the company systematically organized its business model to focus on the two market segments of transportation and life sciences & environment.
Forecast for 2018
CFO Emese Weissenbacher sees the filtration company as being well prepared to meet the future: "MANN+HUMMEL is financially sound and has a strong technological position. We are focused and pursuing a clear strategy." In 2017 the company successfully acquired Wix-Filtron. This business unit is now fully integrated in the group. Wix-Filtron has met our expectations and has especially significantly strengthened our position in the American aftermarket. In this field the aftermarket is traditionally considerably more profitable than the original equipment business.
Emese Weissenbacher has undertaken to further improve the profit margin in 2018. In total a growth in sales revenue is expected in the mid-single digit percentage range together with a slightly positive development for the margin. The operating margin (EBIT) is also set to be in the mid-single digit percentage range.