HÖRMANN Group publishes 2015 Annual Report

Technology specialist HÖRMANN Finance GmbH increased its consolidated sales from EUR 418.0 million to EUR 435.4 million in the 2015 financial year and generated positive EBIT of EUR 11.9 million following a slightly negative figure in the previous year (EUR -0.4 million). All three divisions – Automotive, Engineering and Communication – made positive earnings contributions. The main reasons for the positive business development were the capacity adjustment measures in the Automotive segment that were initiated in 2014, which have led to a reduction in staff costs in particular, as well as the improvement in gross profit due to optimised material usage. Consolidated net income after taxes improved to EUR 6.2 million after a net loss of EUR -10.1 million in the previous year.

The main restructuring activities were carried out in the Automotive division, which had reported significant declines during the previous year owing to weak demand in western Europe, the impact of the Russo-Ukrainian conflict and pull-forward effects resulting from the introduction of the Euro VI emissions standards for large goods vehicles. Underpinned by stabilisation on the European commercial vehicle market, the HÖRMANN Finance Group achieved segment sales of EUR 344.9 million in the year under review (previous year: EUR 348.4 million), surpassing expectations in the process. EBIT in the Automotive division improved from EUR -4.4 million to EUR 7.3 million.

HÖRMANN Finance GmbH secured numerous orders in the Engineering division in 2015, most of them for multi-year projects. Net sales increased by approximately 65% to EUR 61.9 million (previous year: EUR 37.7 million) after these major projects had been invoiced. EBIT improved to EUR 3.5 million (previous year: EUR 2.1 million).

The volume of business at the Communication division declined slightly, with sales of EUR 28.5 million in 2015 versus EUR 29.6 million the previous year, due in particular to weaker demand in overhead line engineering and to postponed projects. Earnings were also affected by unscheduled project follow-up costs and stiff competition, falling slightly from EUR 2.4 million to EUR 2.2 million.

The consolidated financial result, which improved year-on-year from EUR -6.0 million to EUR -2.6 million, continued to be influenced by interest expenses for the bond issued in December 2013. Costs were reduced partly by a decline in interest expenses for pension obligations and partly by the positive results of the at-equity consolidation as a result of the good earnings of the Funkwerk Group.
Total assets at the HÖRMANN Finance Group, which employed around 2,283 people on average in 2015, not including trainees (previous year: 2,393), increased to EUR 226.9 million (previous year: EUR 221.2 million) as at 31 December 2015. Owing to good earnings performance, equity improved from EUR 70.7 million to EUR 75.9 million, with the equity ratio thus rising from 31.9% to 33.4%. Working capital grew EUR 5.5 million to EUR 38.3 million in the period under review. Overall cash and cash equivalents amounted to EUR 78.7 million at the end of 2015 (previous year: EUR 87.9 million), while net cash and cash equivalents were EUR 77.6 million (previous year: EUR 82.4 million). Net of liabilities from the bond, the company had liquidity of EUR 27.6 million (previous year: EUR 32.4 million).

HÖRMANN Finance GmbH is expecting consolidated sales of between EUR 405 million and EUR 415 million and operating earnings before interest and taxes (EBIT) of around EUR 10 million in the 2016 financial year. The Automotive division is likely to contribute sales of EUR 330 million to EUR 335 million to this, as well as EBIT of roughly EUR 7 million. In strategic terms, the focus in this segment is on expansion towards becoming a full-service system supplier in steel and sheet steel machining as well as growing more international in nature, which will involve greater investment in 2016 and 2017. After 2014 and 2015 proved to be years of strong growth, a phase of consolidation is anticipated for the Engineering division, which will see the commencement of several new and mostly multi-year projects. The current expectation is for sales in 2016 to reach roughly EUR 47 million and for EBIT to be somewhere around the EUR 2 million mark. In the Communication division, the company is budgeting for a small increase in sales to between EUR 30 million and EUR 32 million and for EBIT of approximately EUR 2 million.

Effective 5 February 2016, Heinz Runte, who has been at HÖRMANN Group since 1975 and occupied a number of significant leadership roles during that time, was appointed to the management of the company and named spokesperson. He succeeded Alfons Hörmann, who left the company on the same date. Johann Schmid-Davis remains chief financial officer of the company.

The PDF contains key figures for the HÖRMANN Finance Group.