Endress+Hauser was able to hold its ground during the 2015 fiscal year, despite a difficult business environment. Although net sales increased 6.6% to €2.1 billion, preliminary financial figures show the impact of the strong Swiss franc on earnings.
“2015 was marked by currency rate fluctuations,” said Dr Luc Schultheiss, Chief Financial Officer (CFO) of the Group, which specialises in instrumentation and process automation. Last year’s decision by the Swiss Central Bank to revoke the cap on the franc was a major blow to the budget right at the beginning of the year, impacting earnings especially hard. The CFO anticipates Endress+Hauser’s net income will decline around 25% compared to 2014. “We were unable to follow on the heels of good results in previous years.”
The weak euro also had a significant influence on the group’s consolidated revenues. “In local currencies, the group’s sales grew less than 1%,” said Schultheiss. The economic transformation in China as well as the drop in the prices of raw materials – especially declining oil and gas prices – weighed heavily on the business.
500 new jobs worldwide
While dissatisfied with the performance of the business, Schultheiss nevertheless emphasised several positive developments. “The Endress+Hauser Group continued to show sound profitability and financial stability.” The company increased both its equity capital ratio and the headcount. The group created more than 500 jobs worldwide, ending the year with a total of 12 952 employees. Endress+Hauser will present the audited annual report in Basel on 3 May 2016.The CFO anticipates the current year will be even more difficult, with a single digit growth in net sales and stagnating profits. Assuming the business develops as planned, the company will probably add around 350 jobs.
Adapted from press release by Rosalie Starling
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