Endress+Hauser Remains Profitable Despite Currency Fluctuations

Feb. 17, 2016
Strong Swiss franc affected company's earnings

Endress+Hauser was able to hold its ground during the 2015 fiscal year despite a difficult business environment. Although net sales increased 6.6% to 2.1 billion euros, preliminary financial figures show the impact of the strong Swiss franc on earnings.

“2015 was marked by currency rate fluctuations,” says Dr. Luc Schultheiss, Chief Financial Officer of the group, which specializes in instrumentation and process automation. Last year’s decision by the Swiss Central Bank to revoke the cap on the franc was a major blow to the budget right at the beginning of the year, impacting earnings especially hard. The CFO anticipates Endress+Hauser’s net income will decline around 25% compared to 2014.

The weak euro also had a significant influence on the group’s consolidated revenues. “In local currencies, the group’s sales grew less than 1%,” noted Schultheiss. The economic transformation in China as well as the drop in the prices of raw materials, especially declining oil and gas prices, weighed heavily on the business.

Schultheiss nevertheless emphasizes several positive developments. The company increased both its equity capital ratio and the headcount. The group created more than 500 jobs worldwide, ending the year with a total of 12,952 employees.

Endress+Hauser will present the audited annual report in Basel on May 3, 2016.

The CFO anticipates the current year will be even more difficult, with a single-digit growth in net sales and stagnating profits. Assuming the business develops as planned, the company will probably add around 350 jobs.

Source: Endress+Hauser