The effects of the coronavirus pandemic are not leaving the industry unscathed. These are becoming visible in the business figures that are now gradually being published by companies. This is also the case at Endress+Hauser. The specialist for measurement and automation technology reported a decline in turnover of -2.8% to 2.577 billion euros for the past 2020 financial year. The operating result (EBIT) fell slightly by -1.9% to 337.1 million euros. The return on sales (ROS) remained unchanged at 13.1%. Earnings after tax fell by -4.1% to 254.9 million euros due to higher taxes. The Group is virtually free of bank debt. The equity ratio rose by 1.4 percentage points to 77.0%.

The result was significantly influenced by the development of exchange rates. With the exception of the Swiss franc, all major currencies depreciated against the euro. Without these influences, according to CFO Dr. Luc Schultheiss, Endress+Hauser would have almost achieved the previous year's sales. "In local currencies, we are above the industry average and have performed well in the market." However, the exchange rates had a positive effect on costs, such as the cost of materials. Operating expenses also fell because many business trips and activities were canceled.

Individual regions, sectors and segments developed differently. Of the three countries with the highest sales, only China achieved growth and is now the largest single market for the Swiss company. In contrast, sales declined in Germany and the USA. In contrast to process measurement technology, laboratory instrumentation recorded strong growth. Cyclical sectors suffered during the crisis, while acyclical sectors remained stable.

Online business grows

At the last annual press conference on May 12, 2020, i.e. at the beginning of the pandemic, CEO Matthias Altendorf emphasized that the company is setting the right priorities with its 2020+ strategy. The strategy focuses on the digitalization of products, solutions and services, interaction and collaboration with customers and colleagues. At that time, online order intake increased significantly. This is now reflected in the figures: The number of registered users of the endress.com platform doubled and online business grew by +39%. With the Visual Support app, users can bring the service technician virtually to the systems and, according to the company, factory acceptance tests can now also be carried out remotely with video support.

Investments in production and employees

Last year, Endress+Hauser invested 205.9 million euros in production, primarily in the expansion of the plants in Maulburg, Germany, and Reinach, Switzerland. The Gerlingen and Waldheim/Saxony sites in Germany and Aurangabad in India are also being expanded. The sales companies in Canada and Mexico are also constructing new buildings. However, the total investment amount is -10.9% below the previous year.

The R&D ratio was 7.6%. Accordingly, the specialist for measurement and automation technology invested EUR 195.1 million in research and development. With 276 inventions, the company registered 42 fewer innovations for first patents. Altendorft believes this development is also due to working from home: "People are more creative when they inspire each other and collaborate to find solutions." Regardless of the patent applications, 40 new products were launched on the market last year; this year, the figure is expected to be 74.

Proportion of women in management positions to increase

Endress+Hauser wants to increase the proportion of female employees in the company and recruit more women for management positions.

© Endress+Hauser

The number of employees grew by 126 in 2020 to 14,454 worldwide. Virtually all trainees were taken on. Endress+Hauser aims to increase the proportion of women in management positions to around 30% by 2030 - double the current figure. The company had already significantly reduced its ecological footprint in recent years. In the year of the pandemic, carbon dioxide emissions fell further from 10.1 to 8.9 tons per million euros of turnover.

With sustainability and diversity, the company is addressing two major social issues. CEO Matthias Altendorf emphasized the company's social responsibility: Endress+Hauser succeeded in 2020, the year of the pandemic. "We have helped to keep important areas of our daily lives running during the pandemic. Our work is important for our customers and for society." For example, products from the Swiss company are used to manufacture vaccines. And its subsidiary Analytik Jena supplies PCR technology to detect the coronavirus.

Good start to the current year

Endress+Hauser aims to achieve mid-single-digit percentage growth in 2021. The company started the current year with momentum: in the first quarter, incoming orders were above its own targets as well as above the still strong first quarter of the previous year. However, exchange rates are once again having a negative impact on consolidated sales. The company also expects lower profitability, as many of the savings made in 2020 were one-offs.

"The outlook is still characterized by uncertainty," emphasized Altendorf. In addition to further waves of the pandemic and new virus variants, the supply chain continues to cause concern for the entire industry. Endress+Hauser is therefore increasing its inventories and strengthening its supplier network. New, efficient logistics centers have also been put into operation in China and Germany.