Weinheim, Germany – New acquisitions helped Freudenberg Group to grow sales by 13.5%, to €8,590.1 million, in 2016, while profits more than doubled to €1,095.1 million, the German group stated 5 April.
Profit improvements for the full year ended 31 Dec 2016 were mainly due to higher sales, efficiency improvements and “in particular special effects as a result of the acquisitions of Vibracoustic and Japan Vilene Company.”
Overall, Freudenberg invested €1,629 million last year, including €1,222 million in equity acquisitions of joint ventures and €407 million in production facilities. Another €371.9 million was invested in R&D activities, up from €315.3 million in 2015.
Freudenberg said it “intensively” developed its portfolio through acquisitions and disposals in 2016, including the acquisition of the remaining 50% stake in Vibracoustic GmbH, Darmstadt, held by its former joint venture partner Trelleborg Holding AB.
Additionally, in early October, the business of Freudenberg Schwab Vibration Control was sold to Trelleborg Holdings Germany GmbH, Stuttgart.
Investments in machinery, plant and buildings included Freudenberg Sealing Technologies’ opening of a €10-million new plant in Bursa, Turkey, and a €10-million expansion in Oberwihl, Germany in June 2016.
Freudenberg Sealing Technologies also launched a “major expansion” in its production plant in Keckemet, Hungary through a €4-million investment in July last year.
“We are on track to become one of the most innovative broadly diversified global technology groups,” said Mohsen Sohi, CEO of the Freudenberg Group at the company’s annual press conference in Weinheim.