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Koerber
A successful year for Körber: Strong operational growth, further strenghtening of global activtivities and technology position as well as consistent expansion of digital solution expertise
The 2017 fiscal year was a highly successful one for the international technology group Körber. The strategic enhancement of the portfolio and the consistent implementation of the long-term strategy continue to spur further growth for the Group. In the future, Körber intends to remain a technology and market leader. This is why the Group is also increasing efforts for its digitally focused advancement. The Group will collaborate with its customers and partners to "network ideas and create solutions" for this purpose.
The Körber Group's order intake increased by 23 percent to an all-time high with a total value of €2,901 million (previous year: €2,357 million). In line with this growth, the Group also raised its sales to a new level in the 2017 reporting year, increasing by 18 percent compared with the previous year to €2,609 million (2016: €2,215 million). The reasons for this significant increase were, above all, strong operative growth and successful strategic acquisitions. Due to this positive operative performance, earnings also increased to €239 million (previous year: €171 million). These results led to a return on sales of 9 percent, which exceeded the previous year's figure of just under 8 percent. Net profits were €65 million, around 8 percent higher than the previous year (€60 million).
In terms of consolidated sales, Europe remained the most important market for the Group's companies, followed by Asia and the American markets, where the Group's presence was further expanded through acquisitions.
Digital Advancement
The Körber Group is pursuing a comprehensive approach for its own digital advancement, which is being implemented in a focused and consistent manner: "We want to actively shape the digital transformation in our markets ‑ especially in cooperation with our customers. That's our goal. And this is why our 2017 Annual Report is titled ‘Networking Ideas, Creating Solutions’,” explains Stephan Seifert, Chairman of the Executive Board of Körber AG. “This title summarizes our attitude and aspirations very well: Together with our customers and partners, we are working to further expand our technological leadership in all Business Areas. In this respect we are also breaking new ground in digitization, which is the basis for strengthening our leading market positions. We are bringing together a variety of innovative ideas and offer our customers solutions that shall lead to joint successes."
“To accelerate our digital advancement, we set up our new Business Area Körber Digital at the end of 2017. It is headquartered in Berlin, right at the heart of the European start-up scene," continues Seifert. “On the one hand, Körber Digital supports all our Business Areas on their path to progressive digitization. And on the other hand, the Körber Digital team works on brand new products, services and business models. Through digital solutions we aim to provide our customers with clear competitive advantages in their markets and increase our customers' loyalty to us. We see ourselves as shapers of digitization and Industry 4.0. In addition to research and development (R&D) in our existing Business Areas, we are achieving this by increasing our investments in industry-oriented start-ups and utilizing their expertise work for us and for our customers”.
BigRep is an example of what this can look like. Since July 2017, Körber has been investing in this Berlin-based start-up that is developing large-format 3D printers for additive manufacturing. Since June 2017, Körber has also been an investor in the High-Tech Gründerfonds III ("High-Tech Start-Up Fund", HTGF) scheme. This fund specifically promotes emerging companies working on pioneering business models. HTGF supports up to 40 start-ups every year.
“Our successful 2017 results show that our financial situation is extremely solid and robust, which allows us to further grow internationally while also investing in new business models and business ideas,” explains Stefan Kirschke, Chief Financial Officer (CFO) of Körber AG. “These investments provide us with fast and direct access to new technologies, process solutions and markets. They also enable us to reach out to new customer groups. This all together creates a valuable network for the future.”
In 2017, the Group's research and development (R&D) expenditures increased to €138 million (previous year: €127 million). This corresponds to 5.3% of revenue expenditure for R&D.
Strategic acquisitions strengthen growth
Further acquisitions and investments highlight Körber's ongoing development in the area of cutting-edge ‑ including digital ‑ technologies: At the beginning of 2017, the Körber Group acquired Fargo Automation, based in Fargo, North Dakota, USA. The company develops and produces automated packaging systems for the pharmaceutical and medical industries. With this acquisition, the Group has further expanded its Business Area Körber Pharma Systems internationally as well as its portfolio.
The Business Area Körber Tissue grew its offer and technology portfolio in the folding technology segment with the acquisition of MTC, based in Lucca, Italy, in mid-June. As a global leader in folding technology, MTC supplements the roller technology area, in which Fabio Perini is already a market and technology leader. MTC develops, manufactures and sells interfold/multifold systems for hygienic tissue paper such as facial tissues and paper towels, as well as napkin processing machines.
In the Business Area Körber Logistics Systems, there were two acquisitions in 2017: the US software specialist DMLogic in June and HighJump in August. DMLogic, based in Pittsburgh, Pennsylvania, USA is a specialist provider of logistics software solutions, serving predominantly pharmaceutical, automotive and retail customers. HighJump, a US specialist in supply chain and cloud solutions, is based in Minneapolis, Minnesota, USA. With this acquisition a leading international provider in the supply chain management and cloud applications segments is built in the Business Area Körber Logistics Systems. The acquisition of HighJump enables stronger growth in the US market and provides customers with a technologically leading software platform.
In November, the Group completed the acquisition of the system partner Systec & Services. This acquisition strengthens the Business Area Körber Pharma Systems’ competencies in the areas of MES (Manufacturing Execution Systems) and serialization. The Business Area is already successful in these areas with Werum IT Solutions and Seidenader. Systec & Services has a great deal of expertise in the consulting business. The company is based in Karlsruhe, Germany.
Employee numbers increase - mainly due to acquisitions
Employee numbers were up by December 31, 2017 – mainly due to acquisitions – reaching a total of 12,402 (2016: 10,947). Including non-consolidated companies, the number of employees working for the Group is 12,721 (previous year: 11,246).
Körber's strong apprenticeship programs and attractive employee training opportunities provide a countermeasure to the narrowing market for skilled employees and managers in strategically relevant professions.
A variety of employer branding measures also contribute to this effort. One such successful measure has been the establishment of Körber’s own, regionally-structured recruiting center for the identification and direct approach of highly qualified specialists.
Outlook for the 2018 fiscal year
The high number of incoming orders and sales in the first quarter allows a positive outlook for the remainder of the year. In 2018, the Group expects continued increases in incoming orders and sales in its existing Business Areas leading to positive developments in the results (EBITA). The Chairman of the Group Executive Board, Stephan Seifert, has also announced significantly higher investments and expenditures for research and development (R&D) in 2018. “These will boost not only innovative projects in our established technologies, but also ‑ for example ‑ projects for data analytics, cloud solutions and robotics solutions for increased plant availability, as well as development projects for digitally supported customer services or virtual and augmented reality solutions.”
Press Release June 12, 2018
The Körber Group's order intake increased by 23 percent to an all-time high with a total value of €2,901 million (previous year: €2,357 million). In line with this growth, the Group also raised its sales to a new level in the 2017 reporting year, increasing by 18 percent compared with the previous year to €2,609 million (2016: €2,215 million). The reasons for this significant increase were, above all, strong operative growth and successful strategic acquisitions. Due to this positive operative performance, earnings also increased to €239 million (previous year: €171 million). These results led to a return on sales of 9 percent, which exceeded the previous year's figure of just under 8 percent. Net profits were €65 million, around 8 percent higher than the previous year (€60 million).
In terms of consolidated sales, Europe remained the most important market for the Group's companies, followed by Asia and the American markets, where the Group's presence was further expanded through acquisitions.
Digital Advancement
The Körber Group is pursuing a comprehensive approach for its own digital advancement, which is being implemented in a focused and consistent manner: "We want to actively shape the digital transformation in our markets ‑ especially in cooperation with our customers. That's our goal. And this is why our 2017 Annual Report is titled ‘Networking Ideas, Creating Solutions’,” explains Stephan Seifert, Chairman of the Executive Board of Körber AG. “This title summarizes our attitude and aspirations very well: Together with our customers and partners, we are working to further expand our technological leadership in all Business Areas. In this respect we are also breaking new ground in digitization, which is the basis for strengthening our leading market positions. We are bringing together a variety of innovative ideas and offer our customers solutions that shall lead to joint successes."
“To accelerate our digital advancement, we set up our new Business Area Körber Digital at the end of 2017. It is headquartered in Berlin, right at the heart of the European start-up scene," continues Seifert. “On the one hand, Körber Digital supports all our Business Areas on their path to progressive digitization. And on the other hand, the Körber Digital team works on brand new products, services and business models. Through digital solutions we aim to provide our customers with clear competitive advantages in their markets and increase our customers' loyalty to us. We see ourselves as shapers of digitization and Industry 4.0. In addition to research and development (R&D) in our existing Business Areas, we are achieving this by increasing our investments in industry-oriented start-ups and utilizing their expertise work for us and for our customers”.
BigRep is an example of what this can look like. Since July 2017, Körber has been investing in this Berlin-based start-up that is developing large-format 3D printers for additive manufacturing. Since June 2017, Körber has also been an investor in the High-Tech Gründerfonds III ("High-Tech Start-Up Fund", HTGF) scheme. This fund specifically promotes emerging companies working on pioneering business models. HTGF supports up to 40 start-ups every year.
“Our successful 2017 results show that our financial situation is extremely solid and robust, which allows us to further grow internationally while also investing in new business models and business ideas,” explains Stefan Kirschke, Chief Financial Officer (CFO) of Körber AG. “These investments provide us with fast and direct access to new technologies, process solutions and markets. They also enable us to reach out to new customer groups. This all together creates a valuable network for the future.”
In 2017, the Group's research and development (R&D) expenditures increased to €138 million (previous year: €127 million). This corresponds to 5.3% of revenue expenditure for R&D.
Strategic acquisitions strengthen growth
Further acquisitions and investments highlight Körber's ongoing development in the area of cutting-edge ‑ including digital ‑ technologies: At the beginning of 2017, the Körber Group acquired Fargo Automation, based in Fargo, North Dakota, USA. The company develops and produces automated packaging systems for the pharmaceutical and medical industries. With this acquisition, the Group has further expanded its Business Area Körber Pharma Systems internationally as well as its portfolio.
The Business Area Körber Tissue grew its offer and technology portfolio in the folding technology segment with the acquisition of MTC, based in Lucca, Italy, in mid-June. As a global leader in folding technology, MTC supplements the roller technology area, in which Fabio Perini is already a market and technology leader. MTC develops, manufactures and sells interfold/multifold systems for hygienic tissue paper such as facial tissues and paper towels, as well as napkin processing machines.
In the Business Area Körber Logistics Systems, there were two acquisitions in 2017: the US software specialist DMLogic in June and HighJump in August. DMLogic, based in Pittsburgh, Pennsylvania, USA is a specialist provider of logistics software solutions, serving predominantly pharmaceutical, automotive and retail customers. HighJump, a US specialist in supply chain and cloud solutions, is based in Minneapolis, Minnesota, USA. With this acquisition a leading international provider in the supply chain management and cloud applications segments is built in the Business Area Körber Logistics Systems. The acquisition of HighJump enables stronger growth in the US market and provides customers with a technologically leading software platform.
In November, the Group completed the acquisition of the system partner Systec & Services. This acquisition strengthens the Business Area Körber Pharma Systems’ competencies in the areas of MES (Manufacturing Execution Systems) and serialization. The Business Area is already successful in these areas with Werum IT Solutions and Seidenader. Systec & Services has a great deal of expertise in the consulting business. The company is based in Karlsruhe, Germany.
Employee numbers increase - mainly due to acquisitions
Employee numbers were up by December 31, 2017 – mainly due to acquisitions – reaching a total of 12,402 (2016: 10,947). Including non-consolidated companies, the number of employees working for the Group is 12,721 (previous year: 11,246).
Körber's strong apprenticeship programs and attractive employee training opportunities provide a countermeasure to the narrowing market for skilled employees and managers in strategically relevant professions.
A variety of employer branding measures also contribute to this effort. One such successful measure has been the establishment of Körber’s own, regionally-structured recruiting center for the identification and direct approach of highly qualified specialists.
Outlook for the 2018 fiscal year
The high number of incoming orders and sales in the first quarter allows a positive outlook for the remainder of the year. In 2018, the Group expects continued increases in incoming orders and sales in its existing Business Areas leading to positive developments in the results (EBITA). The Chairman of the Group Executive Board, Stephan Seifert, has also announced significantly higher investments and expenditures for research and development (R&D) in 2018. “These will boost not only innovative projects in our established technologies, but also ‑ for example ‑ projects for data analytics, cloud solutions and robotics solutions for increased plant availability, as well as development projects for digitally supported customer services or virtual and augmented reality solutions.”
Press Release June 12, 2018