Presidents & Managing Directors
18 June 2015
Hornschuch globally expanding Group 2014: 22.6 million Euros of EBIT (before extraordinary result) with 375.1 million Euros of group sales.
Increases predominantly from organic growth / New subsidiary in China / 1st quarter of 2015: further sales and profit increases. Despite inconsistent global economic development, the Hornschuch Group, which is headquartered in Weissbach near Heilbronn, Germany, was able to continue its expansion course in the reporting year 2014 after preceding years with partially strong growth. With group sales of 375.1 million euros (8.7 % more than in 2013), the forecast was exceeded. In contrast to the previous year, the gain of 6.7 % mainly resulted from organic growth. The growth in Germany was 7.7 million euros to 89.8 million euros and on the European market (excluding Germany, including Russia), 17.8 million euros to 150.1 million euros, which equates to a percentage of 9.4 % and 13.5 % respectively. In the NAFTA countries (USA, Canada, Mexico), the surface specialist achieved a growth of 5.0 million euros or 5.6 % to 92.7 million euros. The total foreign sales reached an increase of 8.5 % to 285.3 million euros. Therefore, the export ratio amounted to 76.1 %. “Despite political and economic uncertainties, we were able to assert ourselves very well worldwide. Our solid continued growth results from our broad international basis, which allowed us to more than compensate declines in individual markets with growth in other markets”, explains Dr. Hans-Hinrich Kruse, CEO of Konrad Hornschuch AG. “After years of a successful buy and build strategy that created the Hornschuch Group, we are now concentrating on pooling our strengths, efficiently using synergies, and intensifying cooperation on all levels, thereby making the best possible use of potentials.” The group’s EBIT (before extraordinary result) increased to 22.6 million euros (previous year: 20.2 million euros). The net profit amounted to 5.3 million euros compared to 4.4 million euros in the previous year. The result improvement is particularly due to foreign exchange effects of 2.9 million euros (previous year: -0.8 million euros) from the valuation of group-internal loans in foreign currencies and the consolidation of debt. The total number of employees as of December 31, 2014, rose from 1,694 to 1,789. At the Weißbach headquarters, more than one thousand employees work for Hornschuch AG.
New subsidiary in China
In late 2014, Hornschuch founded a new subsidiary in China – Hornschuch (Shanghai) Surface Technology Co., Ltd. The business and market development started in early 2015. “We are thereby considerably increasing our activities in the Asian market. Previously, we merely operated a representative office in Beijing”, explains Kruse. “In 2016, we will start production in China for the domestic market as part of a cooperation project. As a key partner for the international automotive industry which is already producing in China, we see the country as a future market with great potential.”
1st quarter of 2015 on track
In the first three months of 2015, the Hornschuch Group reached further sales and profit increases compared to the previous year. “We are right on track and are planning for a sales increase of just under four percent for the year 2015”, says Kruse. “Just like last year, this increase is expected to result from organic growth. We are anticipating better dynamics for the Interior, Home Decoration, and Transportation units than for the Exterior unit.”
Growth for production companies
The percentage and absolute gain in sales on a group-wide basis was generated by the Transportation unit in 2014, supplying an innovative program for the automotive and transportation industry. In addition, there is the Exterior unit with facade, door, gate, and window profile films, as well as roof coverings, construction films, pool liners, wall and floor coverings – specifically for the American market; the Interior unit with upholstery and design products for the furniture industry as well as the contract business; and the Home Decoration unit with d-c-fix brand consumer products.
In addition to the Weißbach main factory, three more production companies belong to the Hornschuch Group: kek-Kaschierungen GmbH, Herbolzheim (Germany), which is established in the market for automotive interiors, again achieved a sales jump to 23.3 million euros (previous year: 18.9 million euros), after strong previous growth years. Hornschuch Stolzenau GmbH, which acquired era Beschichtung GmbH & Co. KG in the form of an asset deal with effect from April 3, 2013, is essentially also a supplier to the automotive industry, with laminations, coatings, and foam films. In 2014, the company generated sales of 34.1 million euros (in the short financial year 2013: EUR 22.7 million).
O’Sullivan Films, Inc., a leading North American manufacturer and finisher of highly developed polymer films with more than 100 years of market presence, around 400 employees, and headquarters in Winchester, Virginia (USA) serves buyers in the automotive industry, in the medical technology sector, and in the contract business sector, as well as consumer target groups. The company, which allows the Hornschuch Group to manufacture directly on site for customers from NAFTA countries, achieved further sales increases to 91.1 million euros in the 2014 financial year after an already strong sales year in 2013 (83.6 million euros).
Brief profile of Hornschuch
The Hornschuch Group produces and markets design and functional films for the end consumer in the Home Decoration unit under the d-c-fix brand. Under the skai industrial brand, Hornschuch supplies films and coated substrate materials for the automotive, furniture, marine, and construction industry. In the Interior unit, high-quality furniture films are produced for kitchens and bathrooms, as well as high-tech upholstery materials, in the Transportation unit, specialist synthetics for vehicle interiors and in the Exterior unit, innovative window profile, door and façade films. The Hornschuch Group, with its headquarters in Weißbach near Heilbronn, is a global leader in surface design. Three additional production operations belong to the Group: O´Sullivan Films, Inc., USA, kek-Kaschierungen GmbH in South Baden, and Hornschuch Stolzenau GmbH in Lower Saxony. With five sales companies, the surface specialist is active in the trend and decision-making centers of Paris, Milan, London, Moscow, and Shanghai which are important for the industry. In addition to this, there are representative offices in more than 80 countries. In total, the Hornschuch Group employs around 1,800 employees worldwide.
For more information contact Mr Axel Schmidt, Manager Communications:
Konrad Hornschuch AG
Salinenstrasse 1 / D-74679 Weissbach / Germany
Tel +49(0)7947 81522 / Fax +49(0)7947 819522 / E-mail: email@example.com