Witzenmann Group continues to grow

Witzenmann Group continues to grow - Turnover of €500 million within reach

29.10.2013

The Witzenmann Group is the world's leading manufacturer of flexible metal tubes, expansion joints, metal bellows and automotive components. Over 3,600 employees in 23 companies in 18 countries develop, produce and sell tailor-made technical solutions for customers from all branches of industry. Witzenmann is a global technological leader within its sector, has the most extensive product range and offers extensive expertise in the field of flexible metallic pipeline elements.

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Plans for 2013 are based on an estimated increase in turnover of +4.3% to €493.2 million. With an actual turnover of €375.8 million at the end of September 2013, Witzenmann is slightly ahead of its forecast. Growth was 4.8% over the same period in the previous year.
Business development in 2013 proved to be highly stable. "The new turnover record of €500 million is within reach. We expect that we will still be ahead of planning at the end of the year," says Hans-Eberhard Koch, Chairman of the Board.

This requires the Group to respond to regionally differing developments. The subsidiaries in America and Asia have exhibited considerable growth. The share of turnover stemming from these regions was 33.0% (2012: 30.7%) at the end of the 3rd quarter. Growth drivers are mainly the subsidiaries in China and the USA. Turnover is stagnating in Europe and Germany.

Witzenmann has primarily been growing in the automotive sector (passenger cars and commercial vehicles). In addition to rising vehicle production numbers, the company has also profited from globally more stringent environmental legislation. Technologically sophisticated projects have been implemented in large-scale industrial plants, plant engineering and construction.

The number of corporate employees has continued to rise. At the end of September 2013, more than 3,600 people were employed in the Group, according to Managing Director Gerhard Flöck. Following the same trend as the turnover, the number of employees in America and Asia rose markedly to 640 persons (end 2012: 561). The German subsidiaries had 1,931 employees at the end of September (end 2012: 1,895). This slight rise in employment in the Pforzheimer headquarters can be attributed to the increased amount of coordination and support offered to subsidiaries.

"With an investment rate of 7.1%, we have been building the foundation for continued growth. In 2013, we will be investing more than €34 million," declares Gerhard Flöck. This volume is considerably above the write-downs. Just short of €13 million is allocated to the headquarters in Pforzheim.

The positive outlook of the global economy has an influence on the current planning. A general revitalization of global economic growth is expected. Higher growth rates are anticipated in 2014 for the industrial countries and emerging nations. "Our dynamic growth will accelerate next year," predicts Hans-Eberhard Koch.

Witzenmann is pursuing ambitious goals. In 2020, its turnover is projected to reach €800 million.

In addition to continued globalization, strengthening of the technology and innovation sectors plays an important role. Since June 2013, Andreas Kämpfe has been heading the "Technology and quality" division, succeeding Matthias Weiergräber, who left Witzenmann for health reasons only a few months before reaching retirement age. Andreas Kämpfe, with a doctorate in mechanical engineering, has been working for Witzenmann since 2001. In his new capacity, he is responsible for expanding the technological competitive advantage of the company. "Our growth strategy requires high quality products as well as further optimization of production processes and innovative problem solutions," comments Andreas Kämpfe, defining the working program for the coming years.

"Our company is prepared for the future. We are in an excellent position to grasp opportunities in growth regions and open new application markets," says the Managing Director.

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