- 2014 in a nutshell: Eight percent sales growth and ten percent earnings growth
- Outlook for 2015: Double-digit sales and earnings growth
- Success criteria: New technologies, global position, and a strong home base
The automotive supplier Webasto continued down a successful path in the 2014 fiscal year. Salesincreased by eight percent to 2.5 billion euros (2013*: 2.3 billion euros). The sales were generated in Webasto’s three core fields of business, whose the weighting remained virtually unchanged compared to the previous year: Sunroofs & Components (sliding and panorama roofs) accounted for 68 percent of the sales, Thermo & Comfort (heating and climate systems) 20 percent, and Convertibles (convertible roofs) 12 percent.
The positive business performance is also reflected by the earnings of the Webasto Group, which amounted to 136 million euros (2013*: 124 million euros) in 2014. This corresponds to a ten percent increase and a return on sales of 5.5 percent. “The previous business year was satisfactory for Webasto,” said Dr. Holger Engelmann, Chairman of the Management Board Webasto SE, at the annual press conference in Munich. “We have recorded continuous sales growth for years and see a positive Ebit development as well. The growth was primarily driven by the double-digit growth in the sliding and panorama roofs business unit.”
After three years, the company’s convertible roof business also picked up again. “We reached our goal of being profitable even with smaller unit numbers,” Engelmann added. This development is buttressed by a study conducted by the British market research company IHS, which forecasts a 35 percent increase in the production volume of convertibles by 2020. Hence Webasto as the market leader expects its sales to continue to increase moderately until 2017.
Primarily due to the slump in Russia, sales of the Thermo division just reached previous year’s level.
The investment ratio was 5.1 percent, after the exceptional 6.4 percent (147 million euros) in 2013. Thus returning to the level of previous years. In 2013 45 million euros were invested solely to expand the plastics competence center in Schierling. In 2014, a total of 125 million euros were earmarked for technical facilities for new projects. Expenditure for research and development remained virtually constant, totaling 187 million euros compared to 189 million euros in 2013.
The number of employees in the Webasto Group increased again in 2014. At the end of December, nearly 10,400 people worked for the market leader in roof and heating systems. As a result, the Webasto family grew by 600 colleagues compared to the previous year. The new staff members were hired primarily in Europe and China, where last year two new sites opened in Wuhan and Shenyang.
The good business performance continued in the first quarter of 2015. Sales were 22 percent higher than in the first quarter of 2014. The return on Ebit was 5.3 percent during the same period. For 2015 as a whole, Engelmann sees considerable potential for improvement: “I expect double-digit sales and earnings growth in the course of the year. We now benefit that we have consistently optimized our processes in recent years.” The Webasto Group’s order volume is currently at 9.8 billion euros, around 1 billion euros up on the previous year.
Successful Path with New Technologies
In the company’s largest business unit, which manufactures sliding and panorama roofs, lightweight roofs made of innovative materials are becoming more and more important. Thus, for example, there is a growing demand for Webasto’s thin and therefore lighter ProTec safety glazing. Another technological highlight is the first polycarbonate roof with IR absorption, which reduces the heating up of the interior. The roof is currently in the third generation of the smart fortwo. For the youngest member of the Webasto lightweight family, Paper Honey Comb (PHC), a new production line has gone into operation at the plastics competence center in Schierling, on which roof elements for the Jeep Renegade are being produced. “Particularly in the roof segment we are benefitting from our new and improved technologies, because we are placing them on the market successfully,” said Dr. Engelmann. The trend towards ever-larger roof openings continues. The full range of technologies Webasto offers for various roof variants can be found in the Multi Optional Roof concept. Here, too, the first variants are being installed in series vehicles.
Growth potential in the Thermo division is offered by the high-voltage heater for hybrid and electric vehicles, which goes into series this year in Volvo (XC90) und Chrysler (Town & Country) cars. Additional impetus is provided by the transport cooling systems for light commercial vehicles for which Webasto has developed customized solutions.
Global Presence with a Clear Commitment to a Strong Home Base
Due to its worldwide development and production network, Webasto is always close to its customers. China, the fastest-growing market, continues to hold a special position. In addition, Webasto is strengthening its footprint in Eastern Europe by expanding its plant in Arad, Romania. The site, which has existed since 2008, is currently being extended to become the largest plant for roof systems in Europe with nearly 1,000 employees.
Webasto is also investing in Germany, which is steadily establishing itself as a competence center for the Webasto world. “Germany is our worldwide impulse generator when it comes to development, ensuring we adhere to global quality standards, and manufacturing sophisticated premium roofs,” said Dr. Engelmann, extrapolating on the importance of the location. Thus, it is only logical that the corporate headquarters in Stockdorf/Munich is being expanded. “In the years to come, we will build the most advanced development center for sliding and panorama roofs at the site of our home base,” said Dr. Engelmann.
“As a result, we are continuing to develop strong development sites in Germany, as we have already begun to do in Hengersberg for convertible roofs and in Gilching for thermo systems. It is important to us to remain an attractive employer with exciting tasks and many development opportunities in an attractive region.”
*New consolildation rules in accordance with IFRS 11 Following the changes made to IFRS 11 (International Financial Reporting Standards), as of 2014 non-controlled 50-50 joint ventures (JV), i.e. joint companies in which Webasto has no industrial leadership, are no longer be included at 50 percent in the consolidated financial statements. As a result, the Webasto Donghee (Korea) JV has been consolidated for the first time based on this equity method. This resulted in changes in sales, total assets, equity ratio, and number of employees. The business figures for 2013 are also being disclosed in accordance with the adjustment to IFRS 11 for better comparability.
