Sales revenue rises by 14% to roughly 3.5 billion euros, Operating result improves: EBITDA margin at almost 10%, Number of employees now exceeds 20,000
Ludwigsburg/Germany, May 10, 2017 – In the financial year 2016 MANN+HUMMEL increased its sales revenue by 14% to 3.48 billion euros (2015: 3.04 billion euros). The result before interest, tax, depreciation and amortization (EBITDA) has improved considerably to 334.9 million euros (2015: 239.5 million euros). The EBITDA in 2016 amounted to 9.6% (2015: 7.9%).
Emese Weissenbacher, CFO at MANN+HUMMEL, was generally satisfied with the annual result: "As already announced, in the course of 2016 we were able to substantially increase our sales revenue. Our operating profitability is acceptable, even though the sales revenue and result are burdened by negative effects." Negative currency effects and value adjustments on acquisitions impaired the sales revenue and result (EBIT). The result before interest and tax (EBIT) at 115.7 million euros is below that of the previous year, which corresponds to an EBIT margin of 3.3% (2015: 4.5%). This was due to value adjustments made to the amount of 60 million euros.
Into the future with filtration
At the same time MANN+HUMMEL has made some strategic decisions to ensure future profitable growth. This involves a sharp focus on filtration, the core expertise of the company. Filtration separates the useful from the harmful and is therefore a key technology for numerous technical and industrial applications. In addition, it is also important in order to achieve clean air and pure water. "Today we already develop and produce cutting edge technology for the health and mobility of people. Tomorrow we will also grow profitably more and more with filtration applications in areas which are outside of the automotive sector", explained CEO Alfred Weber as he presented the company figures for the financial year of 2016 on Wednesday in Ludwigsburg. "The automotive and mechanical engineering industries are currently in a period of transition. The same is true for our business model. The drivers here are alternative transport solutions, digitalization and the growing importance of sustainability. The opportunities to participate in the development of mobility and the industry of the future have seldom been as interesting as they are today", he added.
The successfully concluded acquisition in May 2016 of the filtration business of the US American Affinia Group has continued to develop satisfactorily. The business unit primarily supplies filtration products for the heavy load sector and hydraulic applications and complements the MANN+HUMMEL range of products and brand portfolio.
Number of employees in 2016
In 2015 MANN+HUMMEL employed 16,607 people worldwide. Due to the acquisition of the Affinia Group, this number increased considerably. In the reporting year of 2016 a total of 20,646 people were employed in the group.
Research and development
In 2016 the group invested 126 million euros in R&D and for the sixth consecutive year in a row is listed by the German Patent and Trademark Office as being in the top 50 of the most active companies for the filing of patent applications. According to Weber, the company plans to stay in the forefront of filtration, regardless of whether this is connected to the automotive sector, life science field or area of environmental technology.
Forecast for 2017
Company boss Alfred Weber sees the filtration expert as being well equipped to meet future challenges: "MANN+HUMMEL is financially sound and has a strong technological position. We know where we want to go and we are fit for the future." In 2017 the acquisition of the Affinia Group will be consolidated for the first time for a full financial year. Weber expects group sales in 2017 of approx. 3.8 billion euros and an improvement in profitability.
Weber also sees excellent opportunities in connection with the digital transformation and alternative drive systems: "The future belongs to clean, intelligent and connected machines and vehicles. This will lead to new business areas for our company." The big breakthrough, however, will require a technological leap in the area of battery technology. Ten years from now, however, the number of electric cars is still forecast to be less than 5% of the total number of vehicles. Today the company already has a wide range of filters available for hybrid drives and will continue to expand its range of products for new applications and also the filtration of air and water.