Specifically, the Stuttgart-based provider of integrated cable and connectivity technology solutions generated net sales of EUR 901.5 million in the 2015/2016 financial year (October 1 to September 30) - 1.7% more than in the previous year (EUR 886.2 million). Earnings before taxes increased by 3.9% to EUR 42.9 million (previous year: EUR 41.3 million). "If the copper price had not continued to fall significantly over the course of the year, and if exchange rates had also remained stable, we would even have been able to record sales growth of almost 8%," says CEO Andreas Lapp. The average copper price for the year fell by 17% from EUR 527/100 kg to EUR 438/100 kg.

Europe remains the most important sales market for the Lapp Group, accounting for 69% of total sales. Sales here rose by 5% to EUR 620.6 million. The most important single market is Germany, with a share of almost 30% of sales and virtually unchanged sales of EUR 268.2 million. Within Europe, sales in Benelux, Spain, Poland and Italy developed particularly positively. The Americas region (USA, Canada, Central and South America) was also able to increase its sales slightly by 1% to EUR 109.0 million. In Asia (including Africa, Australia and New Zealand), on the other hand, sales fell by 9% to EUR 171.9 million due to project-related factors.

The Lapp Group anticipates slight sales growth for the current 2016/2017 financial year. Sales increases are expected primarily in Europe. The company expects the acquisition of the Italian company Ceam Cavi Speciali last October, a manufacturer of data cables for special industrial applications, to provide important impetus.

Entry into the market for rail vehicles

According to Georg Stawowy, Director of Technology and Innovation at Lapp Holding, there is heavy investment in the expansion of rail transportation all over the world - experts estimate an annual market volume of 162 billion euros: "Safety and reliability have top priority for all rail vehicle components - and this naturally also applies to cabling. And the demand for connection solutions is huge: brake systems, driver's desks, drive inverters, couplings and train control systems all need to be wired, as do control cabinets, drives and fans." Specifically, Stawowy puts the market potential for corresponding connection solutions at 500 million euros per year and therefore emphasizes: "We want to be part of this!"

However, the barriers to market entry in this sector are very high. All products used must meet the highest safety requirements. Fire protection is particularly important in passenger transportation. This is why the rail industry has particularly high international requirements, although these are translated into different standards in the various regions of the world. All suppliers and all products worldwide must also comply with the railroad standard IRIS (International Railway Industry Standard). The second challenge is the OEMs themselves. "They will only accept a provider as a listed supplier if they have also tested their products themselves," says Stawowy.

In order to position itself as a new supplier of connection technology for rail vehicles, Lapp has developed a specialized product portfolio including special Ölflex Train cables, Unitronic and Etherline data cables, Skintop cable bushings, Epic connectors and other system products, which were presented for the first time in autumn 2016 at the leading international trade fair for transport technology, InnoTrans, in Berlin.