HÖRMANN Group publishes 2018 Annual Report

HÖRMANN Industries GmbH (corporate bond, German Securities Code Number (WKN): A2AAZG) today published its 2018 annual financial statements. In the 2018 financial year, sales increased from EUR 521.9 million (2017) to EUR 624.1 million, while EBITDA rose by around 53% year-on-year to EUR 41.8 million. Operating EBIT improved by 45% to EUR 30.5 million (previous year: EUR 21.1 million). This meant the sales and earnings forecasts that were upwardly revised in September 2018 were exceeded. HÖRMANN Industries closed the 2018 financial year with consolidated net income of EUR 14.6 million, up 60.4% on the previous year (EUR 9.1 million), with all four segments making a positive earnings contribution. The Group’s equity base improved from EUR 99.6 million at the end of the previous year to EUR 112.8 million on 31 December 2018 thanks to the positive results of operations. The equity ratio increased from 35.1% (31 December 2017) to 38.3% at the reporting date, while net cash and cash equivalents amounted to EUR 77.3 million. Total assets rose by EUR 11.3 million to EUR 294.7 million as a result of the higher level of current assets. Excluding trainees, the company had an average of 3,175 employees in the reporting period, up 12.4% compared with 2017.

Automotive division 

The Automotive division generated sales of EUR 423.9 million in the 2018 financial year (previous year: EUR 375.4 million), well above the budgeted figure of EUR 375 million. There were a number of reasons for this, including a healthy order book and higher commodity prices, which were passed on to customers. Adjusted EBIT (before non-recurring and prior-period effects of EUR 6.3 million) amounted to EUR 10.1 million (previous year: EUR 7.1 million). The increase was attributable primarily to good performance at the Gustavsburg, Bánovce (Slovakia) and Saarbrücken factories. By contrast, high additional expenses resulting from high-capacity utilisation and increased personnel costs led to negative EBIT of EUR -2.0 million at the Penzberg site. In light of this, HÖRMANN Automotive Penzberg GmbH (HAP) was spun off from the HÖRMANN Industries Group in April 2019 and transferred to FTH Fahrzeugteileholding GmbH, an unconsolidated HÖRMANN holding company based in Chemnitz, as of 1 January 2019. Production at the factory is gradually being transferred to other HÖRMANN Automotive sites, particularly the Bánovce plant in Slovakia.

Engineering division

As expected, sales in the Engineering division rose markedly in the reporting period from EUR 33.3 million to EUR 66.0 million due to the multi-year project orders in progress. The large numbers of orders placed and projects under way resulted in EBIT of EUR 8.6 million, marking an increase of EUR 3.5 million or 68.6% on the previous year. All the subsidiaries in the Engineering division contributed to this excellent performance. HÖRMANN Logistik GmbH, the company that generated more sales than any other in the Engineering division, acquired a majority holding in Klatt Fördertechnik GmbH, a company based in the Austrian town of Neumarkt am Wallersee, in April 2019. For HÖRMANN Logistik GmbH, the acquisition represents a vertical expansion of the existing product range and strengthening of the value chain, as well as an expansion of its customer base and the sectors that it serves.

Communication division

Funkwerk AG, which is part of the Communication division along with its own subsidiaries, also performed very well in the 2018 financial year. In terms of consolidated sales – which, at EUR 82.7 million (previous year: EUR 77.5 million), fell within the forecast range of EUR 80 million to EUR 85 million – the company benefited from the noticeable increase in capacity utilisation in particular. EBIT recorded dynamic growth of EUR 4.3 million, or 59.2%, to EUR 11.4 million, thereby surpassing the budgeted range of EUR 8.5 million to EUR 9.0 million. In addition to the rise in fundamental business and the high capacity utilisation, the margin increased largely thanks to the continuing improvement in cost structures as well as quality and process workflows. Overall, the Communication division has exhibited stable progression in sales for several years now, generating sales of EUR 96.3 million (previous year: EUR 92.0 million) and EBIT of EUR 12.1 million (previous year: EUR 7.6 million) in 2018.

Services division

The Services division increased its sales appreciably by 84.0% to EUR 39.0 million in 2018 as a result of factors including the acquisitions undertaken at the end of 2017. EBIT, which was already moderately positive in 2017, also improved from EUR 0.5 million to EUR 1.2 million. New and strategically significant contracts with several high-profile existing customers were signed or extended in the 2018 financial year, and several master agreements were entered into with major new customers. Work also continued on streamlining and optimising the subsidiaries of what is still a relatively new division, including establishing management teams, consolidating different corporate cultures and harmonising administrative processes. The progress that the division is making is also reflected in the growing headcount. Last financial year, 43 new employees were recruited, eight of which were selected through the employee referral scheme alone.

HÖRMANN Industries is anticipating total consolidated sales of roughly EUR 580 million for the 2019 financial year. The decline is due chiefly to the spin-off of HÖRMANN Automotive Penzberg GmbH. Operating EBIT is expected to amount to around EUR 25 million and will again be affected by restructuring and deconsolidation expenses associated with the re-alignment of the Automotive factories this year. The company reserves the right to make use of targeted acquisitions to seize any opportunities for inorganic growth that may present themselves and thus to advance the diversification of the Group and reinforce the good performance of the various divisions.

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