Technology leader in fans and motors grows by 7.5 % and employs over 15,000 people. With the "one ebm-papst" strategy program, ebm-papst is realigning itself.
<div class="rImg"><img class="alignnone size-full wp-image-13132" src="https://refindustry.com/wp-content/uploads/2018/06/Philipp-Reinhard-for-ebm-papst.jpg" alt="" width="249" height="187" /></div>
<div class="imgcaption"><em>Photo: Philipp Reinhard for ebm-papst</em></div>
<div class="imgcaption"><span style="font-size: 16px;">The ebm-papst Group, technology leader for fans and motors, stays on global growth course. The family-owned company based in Mulfingen, Baden-Wurttemberg, closed the 2017/18 fiscal year, which ended on 31 March 2018, with sales of </span><span style="font-size: 16px;">€ 2.043 billion</span><span style="font-size: 16px;">. Compared to the previous year (</span><span style="font-size: 16px;">€ 1.900 billion</span><span style="font-size: 16px;">), this represents growth of € 143 million (</span><span style="font-size: 16px;">+7.5 %</span><span style="font-size: 16px;">). As of the reporting date, ebm-papst had </span><span style="font-size: 16px;">15,115 employees </span><span style="font-size: 16px;">(previous year: </span><span style="font-size: 16px;">14,398</span><span style="font-size: 16px;">/+717</span><span style="font-size: 16px;">).</span></div>
Stefan Brandl, CEO of the ebm-papst Group: "For the first time, we have managed to exceed the € 2 billion mark more than clearly as a corporate group. In times of material shortages, capacity problems and political uncertainties this is an outstanding achievement. We grew in almost all regions, markets and locations, often even in double figures," says Brandl.
With the introduction of the "one ebm-papst" strategy program last year, Stefan Brandl set the course for a structural realignment of the company with the goal of qualitative growth. Brandl: "We are currently working on more than 30 strategic ‘one ebm-papst’ projects, through which we will, among other things, increase our efficiency, effectiveness, responsiveness and flexibility and, in the long term, expand our leading international position as a strong corporate group.
Significant part of the "one-ebm-papst" program is a project called "Structure 2020". In addition to Europe, ebm-papst is consistently expanding its regions of Asia and America according to the "local for local" principle and increasing its independence in i.a. the areas of development, sales and production. In the current fiscal year 2018/19, around € 201 million (previous year: € 144 million) will be invested in further capacity expansion, for example in Xian, which is already the fifth location in China, and in a new technology center in Mulfingen.
For the current fiscal year, the technology leader is planning with a moderate sales growth of 3.1 % to € 2.107 billion. ebm-papst will provide around € 116 million (+6.0%) for research and development, including the further development of aerodynamics/acoustics, digitization, materials expertise and the further development of its start-ups in Dortmund and Osnabrück.
<b>Background information on FY 17/18 and current FY 18/19</b>
<b>Regions and business Divisions: ebm-papst shows strong growth in all markets</b>
Despite uncertainties and risks due to economic policy conditions such as Brexit, Russian sanctions or a possible trade confrontation with the USA, the ebm-papst Group achieved strong growth in all business areas and in three of its four regions and expanded its market shares.
Extremely pleasing growth of 10.5% for ebm-papst in Europe (excluding Germany) to € 948.2 million (previous year: € 858.3 million) followed by Germany with 7.2% to € 470.8 million (previous year: € 439.1 million) and the Asia region with 6.2% to € 376.5 million (previous year: € 354.6 million). On the American market, the industry leader fell slightly to € 247.7 million (previous year: € 248.2 million/ -0.2%) due to currency effects.
With regard to the market segments, the Automotive/Drive Technology division managed by St. Georgen grew strongly by 15.2% to € 288.6 million (previous year: € 250.6 million). The Household Appliances and Heating Technology division, which is managed from the Landshut location, increased its sales by 8.4% to € 400.0 million (previous year: € 369.2 million). Industrial air technology managed from the headquarters in Mulfingen grew by 5.8% to € 1,354.5 million (previous year: € 1,280.5 million).
<b>R&D – Technology leader invests in think tanks</b>
With its think tanks in Dortmund and Osnabrück, ebm-papst is stepping up its research activities in the field of digitization and the development of new business models. Around 20 researchers are to bring in new creative ideas at a deliberately chosen distance from the world of fans and motors.
In fiscal year 2017/18, ebm-papst spent € 109.2 million on research and development. The focus was on digitization, aerodynamics and acoustics, energy-efficient product concepts and the expansion of electronics and systems capability. For the current fiscal year, expenses of € 115.8 million (+ 6.0%) are planned.
<b>Investments: ebm-papst continues to invest</b>
In the past fiscal year, ebm-papst met the high demand for innovative fan and drive systems with an investment program in the amount of € 143.9 million. Investments included the plant expansion in St. Georgen, Lauf and Herbolzheim, the development of our site in Romania and the new logistics center in Mulfingen-Hollenbach.
For the current fiscal year, ebm-papst plans record investments in the amount of € 200.8 million (+39.6%). These include the new Chinese site in Xian, the technology center in Mulfingen and expansions in Eastern Europe.
<b>Employees: Significant growth in the workforce</b>
ebm-papst's positive sales development was also reflected in the increase in the workforce by 717 persons. At the end of the fiscal year, the technology leader in fans and motors employed 15,115 people worldwide (previous year: 14,398 / +5.0%). The workforce thus increased from 6,519 to 6,852 (+333) in Germany and from 7,879 to 8,263 (+384) abroad.
In 2017/18, ebm-papst employed a total of 1,173 leasing employees worldwide (previous year: 1,569 / -396), including 372 (previous year: 372) in Germany and 801 (previous year: 1,197) abroad.
<b>Further increase in training opportunities</b>
ebm-papst recruits the majority of its technicians and specialists through company training and continuing education programs. As of March 31, 2018, 341 (+3.0%; previous year: 331) trainees and students enrolled with the dual university were employed at ebm-papst. Breaking the number down to the individual sites, 203(previous year: 191) were in Mulfingen, 43 (previous year: 53) in Landshut, 37 (previous year: 37) in St. Georgen, 29 (previous year: 26) in Herbolzheim and 29 (previous year: 24) in Lauf.
<b>Background information about ebm-papst locations in Germany</b>
ebm-papst Mulfingen, the company headquarters, exceeded the billion mark for the first time with sales of € 1.029 billion (previous year: € 942 million / +9.2%). The number of employees grew by 210 to 3,699 (previous year: 3,489 / +6.0%).
The St. Georgen site is facing challenges due to its difficult automotive segment. By implementing an extensive catalogue of measures, this location is to be put back on the road to success.
In terms of sales development, the Black Forest subsidiary with its locations in St. Georgen, Herbolzheim (Automotive) and Lauf (Transmission) grew by 10.6% to € 446 million (previous year: € 403 million) and employed 1,936 people at the end of the financial year (previous year: 1,818 / +6.5%).
ebm-papst Landshut, a Bavarian subsidiary focusing on the household appliance industry and heating technology segments, also increased its turnover to € 333 million (previous year: € 304 million / +9.5%). The number of employees remained almost constant at 1,217 (previous year: 1,212 / +0.4%).