Würth Focused on Sales of 10 Billion Euros in 2013
The Group reported half-year total sales at 4.9 billion euros, 3 percent down year on year, primarily because of a weak first quarter, but says it is focused on reaching the 10 billion euro mark this year. The half-year decline was specifically attributed to the difficult economic environment in key markets such as Germany, especially in the first quarter of the year 2013. The long winter, Würth said, hindered sales growth in the strategically important construction sector. The unstable economic situation in southern Europe has also placed a drag on Würth‘s business for several years now. After adjusting for the Group‘s solar activities, which were discontinued, the overall decline in sales was 0.8 percent. The operating result was, however, in line with the previous year at 205 million euros.
Robert Friedmann, chairman of the central managing board of the Group, regarded the situation as challenging, but was nonetheless optimistic for the second half of the year. “It cannot be denied that the general economic situation is working against us at the moment. Often this can be felt in lower total order values. However, the second quarter of 2013 is already pointing towards a recovery. Other leading indicators such as incoming orders in our electronics group or the development of our automotive businesses give us reason to expect stronger sales growth in the Würth Group over the next six months.”
Notable profitable operations in the first half included the Wood Group in North America, Würth Group China, the electronics company eiSos as well as a number of South American subsidiaries. In times of economic crisis, Würth says, its regional diversity as well as its great variety of different business segments have again proven its worth. At the beginning of July Würth Group brought into effect more streamlined senior management, to provide shorter reporting lines and consolidated responsibilities aimed at increasing the Group‘s agility and performance. It also reduced the number of employees to 64,064 in the first half of 2013 (December 2012: 65,169) saying that negative sales development required a reduction in the sales force.
Considering the outlook Würth said it was focusing on the development of new business segments such as e-business and targeted investments in growth markets to cross the 10 billion euro mark in the current business year. Robert Friedmann said, “We are still expecting to see low single-digit sales growth and a satisfactory development of the operating result in 2013.”
