Following the record result of EUR 1,059 billion in the 2021/22 financial year, the Espelkamp-based company achieved sales of EUR 1,036 billion (- 2.2%) in the 2022/2023 financial year. "This means that what we predicted last year has come true - a sideways movement after the previous boom years," said Philip Harting, CEO of the Harting Technology Group.

The distribution of sales in the regions was mixed: The Americas region benefited from economic policy incentives - such as the Inflation Reduction Act - and grew by EUR 12 million (+9%) to EUR 159 million, while Asia shrank by EUR 24 million (-9%) due to the currently weak Chinese market. Germany remained almost stable at EUR 277 million (+ 2 %). EMEA (Europe excluding Germany), on the other hand, recorded a decline in sales of EUR 18 million (-5%) to EUR 355 million. The headcount fell by 241 employees from 6,446 to 6,205 as at September 30, 2023 - mainly due to the sale of Harting Systems (- 160 employees) and the closure of the companies in Russia (- 61 employees).

Investments and outlook

"With our investments of EUR 76 million, which are significantly higher than depreciation, we are strengthening our production, development, organizational structures and processes. This includes capacity expansions in Romania (Agnita), a new e-mobility line in Mexico and the recently opened new plant in Vietnam. In addition, considerable funds were invested in the further digitalization and automation of production and processes - including at the Espelkamp and Rahden sites," says Harting. The aim is to consistently continue to automate and digitalize, reduce the cost of gas supplies and ensure long-term access to raw materials at competitive costs. This is the only way the company can lay the foundations for further growth.

Not least the war in Ukraine and the subsequent energy crisis have encouraged the company to put its energy and heat supply on an independent and, above all, climate-neutral footing. "Having already relied 100% on green electricity for over ten years, the acquisition of a further biogas plant in Espelkamp means that we are now 100% independent of the gas grid thanks to a direct connection to our production and can simultaneously reduce our carbon footprint by 1,200 tons per year," reports Harting on an investment in the double-digit millions.

By 2027, the Group also wants to reduce CO2 emissions worldwide by 60% and achieve climate neutrality by 2030. To this end, Harting is once again investing around EUR 75 million in the 2023/24 financial year in the development of new connectivity solutions for decarbonization, digitalization and automation, in structures and processes and in further globalization through market- and region-specific development and production capacities.

Despite all the efforts the company is making to secure its future, Harting expects economic development to be gloomy in the current financial year and, due to the 10% drop in incoming orders, to fall short of the billion euro mark. "We are planning for a decline in turnover in the high single-digit percentage range."