HÖRMANN Group publishes 2017 Annual Report

HÖRMANN Industries GmbH (corporate bond, German Securities Code Number (WKN): A2AAZG) today published its 2017 Annual Report in which it confirms the preliminary figures announced on 26 April. Sales increased from EUR 464.6 million to EUR 521.9 million in the 2017 financial year, while EBIT amounted to EUR 14.9 million (previous year: EUR 16.9 million). This meant the sales and earnings forecasts for the reporting period were exceeded. Consolidated income after interest and taxes amounted to EUR 9.1 million (previous year: EUR 11.2 million).

Some events took place within the Automotive division in the period under review that will have a decisive impact on the future of the company. For example, in June 2017, series production began at the new factory in Bánovce in Slovakia, where production of almost 1,000 labour-intensive items had been relocated by the end of 2017. In addition, targeted investments were made in automation at the Penzberg and Gustavsburg sites with the aim of making production more efficient and bolstering the company’s competitive position. Another milestone in the re-alignment of the division was reached in July 2017 when it acquired a 40% stake from MAN Truck & Bus AG in former joint venture HÖRMANN Automotive Gustavsburg GmbH. As a result, HÖRMANN Automotive now has better options at its disposal for expanding its customer base as a supplier completely independent of any manufacturer. Sales in this division increased by 9.3% year-on-year to EUR 375.4 million in the period under review (previous year: EUR 343.4 million). This growth can be attributed to higher demand in the truck sector and in agricultural machinery, as well as to a rise in steel prices (approximately EUR 20 million). Net of insurance contributions of EUR 3.7 million and closure and relocation expenses of EUR 1.6 million, including for adjustments to personnel capacity as part of the increase in automation, EBIT amounted EUR 1.7 million in the period under review (previous year: EUR 6.0 million).

With sales of EUR 33.3 million, the Engineering division failed to match the previous year’s figure (EUR 51.8 million), which was in line with expectations owing to the multi-year project orders in progress. Earnings before interest and taxes (EBIT) increased in spite of this thanks to the large number of orders placed and projects under way, rising EUR 1.2 million year-on-year to EUR 5.1 million. The excellent capacity utilisation of the factory and logistics planning units plus VacuTec Messtechnik GmbH, which was acquired at the end of 2016, were particularly notable factors in the good performance. Furthermore, the Development Road & Rail division of Leadec Engineering GmbH (formerly Voith Engineering GmbH) was acquired in September 2017 along with some 110 highly skilled engineers and designers, accelerating the strategic expansion of the company’s expertise in vehicle development.

Stable progression in sales at the Communication division continued in 2017 with a figure of EUR 92.0 million. EBIT improved from EUR 6.9 million to EUR 7.6 million. Funkwerk AG, first consolidated in 2016, made a significant contribution to growth in sales and earnings, generating sales of EUR 77.5 million and EBIT of EUR 7.1 million. The acquisition of software specialist XQAND in August 2017 broadened the company’s range and, in particular, its capabilities in the field of security technology.

In the first half of 2017, HÖRMANN Industries also pooled the Group’s industrial services in its newly established Services division. In the period under review, the division progressed as expected, with sales of EUR 21.2 million and EBIT of EUR 0.5 million. One event of particular strategic importance was the acquisition of the MAT Maschinen- und Automationstechnik GmbH group at the end of 2017, along with its approximately 130 employees, most of them highly skilled engineers, technicians and fitters. That meant that once again, all strategic divisions made positive contributions to earnings.

The financial result improved year-on-year from EUR -4.5 million to EUR -3.3 million, primarily as a result of refinancing of the corporate bond at the end of 2016. Total assets at HÖRMANN Industries GmbH increased from EUR 262.5 million to EUR 283.4 million, due especially to investment in tangible and intangible assets amounting to EUR 20.7 million. The Group’s equity base improved from EUR 98.3 million to EUR 99.6 million thanks to the positive results of operations. The increase in total assets resulted in the equity ratio falling from 37.4% to 35.2% as at 31 December 2017. Net cash and cash equivalents at HÖRMANN Industries as at the reporting date were EUR 75.2 million (previous year: EUR 69.3 million). Net of liabilities from the bond, the company had satisfactory liquidity of EUR 45.2 million, versus the previous year’s EUR 39.1 million.

The company is expecting business to continue to perform well in the 2018 financial year, with consolidated sales of roughly EUR 560 million and operating earnings before interest and taxes (EBIT) of around EUR 15 million. Operating EBIT will also be affected over the course of the financial year by high expenditure on financing and preparations for the future associated with scheduled investment and restructuring for the re-alignment of the Automotive factories.

You can download the complete annual financial statements here: https://www.hoermann-gruppe.com/en/investor-relations/financial-reports/financial-reports