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Witzenmann Group expects moderate recovery for 2010

After considerable declines in the worldwide year of crisis 2009, the general management of the Witzenmann Group is expecting a moderate growth in revenue for 2010. The Witzenmann Group is one of the world's leading manufac-turers of metal hoses, compensators, metal bellows, and vehicle parts. About 3,000 at 23 companies in 17 countries develop and produce tailor-made solutions for customer from all branches of industry. Within its sector, Witzenmann is the global technol-ogy leader with the most extensive product range and widest competency spectrum in the area of flexible metallic conduit elements.

For the Witzenmann Group, 2009 was characterised by consid-erable revenue losses and a strong costs pressure. The consoli-dated revenues dropped by 20% to about €320 million. The low point was reached in the second quarter, but a slow recovered started in the second half of the year. Almost all companies suf-fered two-digit revenue declines, whereby the subsidiaries in Brazil, China, and India developed better than expected.

Due to a fast and clear countersteering in regard to costs, the Witzenmann Group was able to "keep its head above water" in 2009, according to company management. Despite considerable losses in regard to the result, the company managed to avoid slipping into the loss zone completely.

 

For 2010, company management is expecting a continuation of the moderate recovery that developed in the second half of 2009. A growth in revenues of 6 to 10% is expected. Growth in this magnitude will also require strong discipline in regard to costs, company management explains.

 

In 2010, as well, considerable investments are being made and the strategic alignment of the company group is being consis-tently continued. An investment volume of more than €20 mil-lion is being planned, of which about half is intended for the parent company in Pforzheim. The bellows manufacturing of competitor Burgmann was thus taken over and integrated into the parent company.

The strategy further strives to drive the core business in areas of business subject to strong growth with internationalisation and innovations. In China, India, and Russia, the activities in sales and production are being massively expanded. In support of these activities, the company is working on optimising its struc-tures and processes. For example, lean management methods are being introduced across the board within the scope of the "Witzenmann Production System" (WPS).

 

An essential basis for the further development of the company is a solid financial basis. Due to panic-proof liquidity, a high equity ratio was able to be maintained despite the crisis in 2009. By 2012, the turnover and result level of the company's record year 2008 should be achieved again. Company management considers the Witzenmann Group to be in a very good competitive position that makes its vision of being "world market leader in 2012" continue to remain realistic.

 

Press contact
Witzenmann GmbH
Martin Schnaufer
Östliche Karl-Friedrich-Str. 134
75175 Pforzheim
Germany
Tel. +49 (0) 72 31 - 581 - 213
Fax +49 (0) 72 31 - 581 - 820
E-mail: martin.schnaufer@witzenmann.com