Freudenberg, based in Weinheim, Germany, a global technology group, has announced its 2019 financial results.
“Freudenberg performed well in the 2019 financial year, in spite of the difficult economic and geopolitical market environment. At €9,467.8 million, sales in 2019 were at about the same level as in 2018 (€9,455.4 million). Acquisitions and disinvestments roughly offset each other, while exchange rate effects (€+150.6 million) made a positive contribution to sales.”
“At €820.0 million, operating result was below the high level of the previous year (€910.3 million). This corresponds to a return on sales of 8.7 percent (previous year: 9.6 percent). Reasons for the decline included the downturn in the automotive industry, lower growth in China and the start-up costs in the battery and fuel cell business.”
“The future viability of the Group was further strengthened, on the one hand, by its broad positioning in some 40 markets and 56 countries and, on the other hand, by an intensified focus on innovation. In 2019, more than one third of sales (34.7 percent, previous year: 33.6 percent) was generated with products introduced less than four years ago. The Group also invested a record €481 million in research and development activities, including and increasingly in innovative and efficient technological solutions that make a positive contribution to climate protection.”
“The high equity ratio of 51.3 percent (previous year: 51.9 percent) ensures the Group’s stability.”
“As at December 31, 2019, the Freudenberg Group employed 48,851 people (previous year: 49,137).”
Commenting on the 2019 performance, Freudenberg Group CEO Dr. Mohsen Sohi says: “We once again invested heavily in our future, in machines, equipment, acquisitions and, above all, in the three focus areas of our 2018 to 2020 strategic planning period: Mobility, Digitalization and Sustainability. In addition, as an innovative technology group, we also considerably intensified our already very high levels of research and development activity.”
“Consolidated profit rose to €610.6 million (previous year: €602.4 million).”
“Cash flow from operating activities in the 2019 financial year amounted to €956.9 million, representing an increase of €128.5 million compared with the previous year. This increase is chiefly attributable to the first-time application of IFRS 16.”
The equity ratio marginally decreased from 51.9 percent to 51.3 percent in 2019. “Adjusted for the effects of the application of IFRS 16, the equity ratio would have risen to 52.8 percent. In absolute terms, equity rose to €5,819.5 million (previous year: €5,312.1 million),” says Freudenberg Group CFO Dr. Ralf Krieger.
“In the year under review, the rating agency Moody’s Deutschland GmbH, Frankfurt am Main, confirmed its credit rating of Freudenberg SE, Weinheim, at A3, with a stable outlook, as in the previous year. The Group continues to hold a single A rating.”
Full report HERE