Hirschmann Automotive continues to record sales growth – albeit no longer in the double-digit range. Nevertheless, business volumes exceeded the EUR 400 million mark for the first time in 2019.
Uncertainties on the Market
Despite the single-figure surplus, CEO Volker Buth is satisfied with the results. The strained economic situation notwithstanding, the company grew faster than the market in 2019, while sales increased by 5.4 percent to EUR 405 million. Profits have also been satisfactory.
Due to trade disputes and global uncertainty within the automotive industry, forecasts for 2020 are very much on the conservative side. CEO Buth currently expects an increase in sales of 3.8 percent to EUR 420 million.
Investments of EUR 77.5 Million
Despite the uncertainties, the company continues to invest millions of euros. According to Buth, investments of EUR 77.5 million are in the pipeline for 2020. Of this, EUR 44 million will be used for new tools and machines, and EUR 21 million for facilities at the company’s headquarters in Rankweil. An additional EUR 16 million has been allocated for buildings and infrastructure in Rankweil.
CEO Buth emphasized that the company is investing in a sustainable future. He further clarified that Hirschmann Automotive continues to believe in the success of the automotive industry, regardless of which drive technology is in favor. The company’s products cover the full range of drive technologies.
However, some of the company’s investments have been subject to delay. The new administration building and logistics center in Rankweil were originally planned to go into operation at the end of 2020, but will now be ready in the first quarter to the first half of 2021. The company has decided to take a little more time to better assess the development of the market.
Hirschmann Automotive currently employs 5,650 staff across the Group, of which approximately 1,100 are based at the company’s headquarters in Rankweil.