ERJ staff report (DS)
Weinheim, Germany - Freudenberg group has reported a year of record sales and profits in 2011. Sales ran at euro 6.007 billion (previous year: euro 5.481 billion), an increase of euro 525 million or 9.6 percent on the figure for 2010. Profit from operations (EBIT) amounted to euro 505 million (previous year: euro 431 million). Consolidated profit totaled euro 358 million (previous year: euro 322 million). The 2011 financial year was therefore Freudenberg's most successful ever for sales and earnings.
The improvement in profit from operations, which rose by approximately euro 75 million to euro 505 million, was chiefly attributable to the increase in contribution margins as a result of higher sales. Consolidated profit improved by roughly euro 37 million to euro 358 million.
"One of Freudenberg's main targets is to grow profitably and faster than the market," Dr. Mohsen Sohi, Management Board member and Peter Bettermann's successor as Speaker from July 2012, said. "We intend to achieve that through organic growth in established markets and with the help of selective acquisitions in future markets." Acquisitions will continue to concentrate on the market segments of electroplating, medical technology, oil and gas, filtration and vibration control for rail vehicles, wind turbines and agricultural and construction machinery.
Freudenberg will be making significant investments; â‚¬1.5 billion will be invested in property, plant and equipment over the next five years - with 30 percent of this figure earmarked for Germany.
The classic sealing business, previously conducted on a regional basis by the Freudenberg Seals and Vibration Control Europe Business Group and the Freudenberg-NOK General Partnership Business Group in North and South America was brought together in the Freudenberg Sealing Technologies Business Group at the beginning of 2011. Freudenberg said this new organisation has progressed well at all levels.
Freudenberg noted that it has, with Trelleborg AB, signed the contract establishing a 50:50 joint venture between Vibracoustic and the automotive antivibration business of Trelleborg AB on January 31, 2012. The joint venture is conditional upon approval from the relevant authorities, in particular the European anti-trust authorities.
Vibracoustic set up a new plant producing engine mounts and chassis components in QuerÃ©taro, Mexico, in order to serve the North American market even more efficiently.
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Press release from Freudenberg