The specialist for measurement and automation technology achieved new records in terms of order intake, sales, profit and employment. Endress+Hauser delivered a total of 2.6 million measuring devices in 2021. Despite tight procurement markets and logistics chains, the company ensured the availability of materials worldwide and delivered on time, according to CEO Matthias Altendorf. Sales developed dynamically in Asia and America, and were solid in Europe. Africa was up, with only the Middle East seeing a decline in business, which is heavily dependent on oil and gas. China increased its lead as the market with the highest sales, ahead of the USA and Germany.

In 2021, incoming orders were once again a good five percentage points higher than sales growth. In process measurement technology, modern analysis methods and the digitalization of the industry provided impetus. In the laboratory business, which had been boosted by demand for PCR diagnostics in 2020, the subsidiary Analytik Jena saw increased growth with products for chemical analysis.

Above-average profit growth

Exchange rates had only a minor impact in 2021. The loss in value of the euro cost 0.5 percentage points in sales. Although expenditure on materials, logistics and personnel increased, the costs for business trips, customer support and trade fair appearances remained below the level of previous years due to the coronavirus pandemic. As a result, operating expenses grew at a below-average rate overall; the operating result (EBIT) rose by 28.8% to 434.0 million euros.

Earnings before taxes (EBT) improved by 37.4% to 463.8 million euros, partly because financial investments generated a good return last year. The return on sales (ROS) climbed by three points to 16.1%. Due to a lower tax rate, earnings after tax grew by 40.0% to 356.8 million euros. The equity ratio reached 79.1%, an increase of 2.1 percentage points. The family-owned company is practically free of bank debt.

Focus on digitalization

Of the more than 70 product innovations in the past year, many are related to the topic of digitalization. Endress+Hauser spent 213.4 million euros, around 7.4 percent of turnover, on research and development in 2021, 9.4 percent more than in the previous year. 258 initial applications to patent offices around the world testify to the Group's innovative strength. The property rights portfolio comprises a total of 8,600 active patents and patent applications.

Endress+Hauser invested 192.8 million euros in 2021 (6.4 percent less than in the previous year). The company has just moved into new buildings in Reinach, Switzerland. Work is still underway at the production sites in Gerlingen and Waldheim in Germany and Aurangabad in India. The largest new projects relate to production in Maulburg, Germany, and a plant in Suzhou, China. The Sales Centers in Mexico and Finland are constructing their own buildings; the subsidiaries in Australia and Argentina are purchasing buildings.

At the end of 2021, 15,117 people were working for the family-owned company worldwide, 663 more than a year ago. New jobs were created in production in particular. Almost all trainees received a job offer after completing their apprenticeship. Endress+Hauser intends to significantly increase its commitment to training once again and double the number of apprentices, students and interns in the coming years.

Outlook suffers due to war

Endress+Hauser started the current year with a record-high order backlog. The Group had expected growth in the upper single-digit percentage range in 2022. However, it is now uncertain whether this target can be achieved. "Russia's attack on Ukraine has changed everything," said CEO Matthias Altendorf. "It is bringing suffering to millions of people and hitting many societies at a time when the pandemic is far from over."

Endress+Hauser stopped all deliveries to Russia as soon as the invasion began. "We will comply with the sanctions in full," emphasized the company boss. "At the same time, we have a responsibility to our employees and customers in Russia." 182 people work at the Sales Center there.