WINTERSTEIGER AG verzeichnet 2008 neuen Rekordumsatz
3-division policy helps in the difficult financial year 2009
- Group sales at a record level in 2008 with 91.5 million Euros
- Operating EBIT of 9.1 million Euros
- EBIT sales return of 9.9% continues at a high level
- Financial year 2009: investments in site development postponed /
expected market and business decline due to world economic situation
Wintersteiger AG looks back at a successful financial year 2008. Although the development of the world economy definitely slowed down in the third and fourth quarters, Wintersteiger continued its successful course as a result of organic growth and gains in the market segments linked with this. With a further growth in Group sales of more than 8% to 91.5 million Euros, the machine builder achieved the highest sales in the company's history. Because of the extremely difficult financial conditions, the successful Upper Austrian company still reckons on a tangible market and business decline for 2009.
At Wintersteiger they are more than satisfied with the business results 2008 and in the end the company has been able to secure more market segments for itself. Owner and chairman of the board Wolff Lange said: "We are already the clear market leaders in all three fields of business. We made intensive use of the first few months of the financial crisis to further extend our market position. That was successful in almost all areas. We were able to see the crisis as an opportunity, thanks to our extraordinary power of innovation, our closeness to all our customers and our flexible production plans". However, the essential success factors for Lange are the company's staff, as he stressed at the audit press conference on 6 May: "We have a great deal to be thankful for in the high level of motivation and the collective commitment of our staff".
Group figures 2008
In the financial year 2008, consolidated Group sales of 91.5 million Euros once again exceeded the record value of the previous year (84.5 million Euros) by more than 8%. Sales abroad grew by 13% in comparison with the previous year. This led to an increase in the export quota of 4% to 89.7%.
For Roland Greul MBA, Managing Director for Finance, Controlling and Personnel, the company result is confirmation of Wintersteiger's capability. Roland Greul said: "Concluding the financial year 2008 with record sales is confirmation of our strategic arrangements, given the financial environment. Nevertheless, the financial year 2009 will also be a very demanding one for Wintersteiger."
The operative result before interest and tax (EBIT) amounted to 9.1 million Euros (previous year: 10.8 million Euros). The EBIT sales returns were reduced to 9.9% (previous year: 12.8%). Besides the record sales and a solid basic EBIT, Wintersteiger's unusually high equity capital ratio is impressive. This rose in the group to 52.6% (+2.3%) and in the parent company in Ried to 61.1% (+3.4%).
As in previous years, Wintersteiger invested strongly in 2008 as well in research and development. Expenditure increased compared to the previous year by over 11% to 4.8 million Euros (2007: 4.3 million Euros). "Even in times of crisis, we continue to work on the development of new products and services. The solid financial basis enables us to make significant investments in research and development, even in difficult times. This enables us to secure today the competitive advantages and market segments of tomorrow," says Walter Aumayr, Managing Director for Technology and Production.
Staffing situation
On 31 December 2008, 640 staff were employed throughout the group (previous year: 607), of whom 457 (71%) were in Ried. Wintersteiger has always attached great significance to the training of its own skilled workers, so the company annually invests in the professional development of young people.
11 new apprentices started their careers at Wintersteiger in August 2008. There is currently a total of 47 apprentices undergoing training - six of them girls.
Company preview 2009
As with many other companies, Wintersteiger does not dare to make a fixed prognosis for the current financial year. "The uncertainty of the markets is at the moment simply too great to make a serious assessment of the development of the current financial course," explains Markus Piber. Wintersteiger is 100% customer-oriented, which means it is also strongly export-oriented, so it is immediately affected by the developments in the world economy. "The longer the crisis lasts and the more intense it becomes, the more strongly Wintersteiger will be affected," adds Piber.
For 2009, Wintersteiger is already preparing for a downturn in the market and the economy.
"The continuing orders in the Seedmech and Sports Divisions as well as our long term company and finance strategy have helped us so far to reduce the effects on Wintersteiger in this difficult economic situation in the worldwide wood industry. We have become even further convinced about our three-division policy. Our priority is to gain market shares, to use the crisis as an opportunity and to use all possible means to safeguard our core staff."
Investments 2009
Wintersteiger had planned bigger investments for 2009 to improve the Ried site. However, Managing Director Walter Aumayr considered these plans secondary under the current circumstances. Walter Aumayr commented: "Because of the currently difficult to assess industry and economy scenario, we have postponed the plans for extending the site for the time being and developed a bundle of measures to deal with the crisis." Production of machines in Ried and saws at Wintersteiger Sägen GmbH in Arnstadt has been adjusted to match orders and demand.
Even though the building plans at the Ried site have been temporarily put on ice, there are crucial switches to be made for the time after the crisis is over. To be able to carry out the long term expansion plans at the Ried site, management has acquired some significant areas of land. These include a section of road and a neighbouring company area with a warehouse of about 360 square metres together with a plot of land.
Change of ownership and
prognosis from the point of view of the new owner
With effect from 1 January 2009, Rainer Bartram, who died suddenly and unexpectedly on 25 February 2009, a few days before his 85th birthday, sold his 55.1% share. LJH Holding GmbH, led by Wolff Lange, had already been the minority shareholder (44.9%) since December 2005 and increased its share to 74.9%. The remaining 25.1% was taken over by ULM Management GmbH. Both companies are 100% owned by the Lange family.
Mr Bartram regarded this settlement as the perfect way to continued success. Mr Bartram had been associated with the Lange family for over 50 years, both in business and in a private capacity. The family will be represented by Wolff Lange, who took over as Chairman of the Board in January 2009.
"Our commitment to Wintersteiger is for the long term. We will continue to follow the success of the established path," explained Wolff Lange at the audit press conference. "We have a solid financial basis and our core economic situation is healthy. We have a motivated, well trained team, top customers and an impressive product portfolio. We are therefore very well equipped both for the crisis and the period after it", continued Mr Lange. The new owner knows where he is going with Wintersteiger and is aware of the strategic arrangements: "We are still the market leaders in all our fields of business. We will therefore continue to follow our strategy for moving forward."
