For the financial year 2021, Endress + Hauser exceeded its own expectations. The company set new records in order intake, revenue, profits and workforce and continued this momentum into the new year. While the Ukraine conflict dampens hopes of continued solid growth, the company believes it is well equipped for a difficult economic environment. Therefore, it is already expanding on various fronts.
Endress + Hauser Group
Endress + Hauser delivered 2.6 million instruments in 2021. “Our customers have great confidence in us,” said CEO Matthias Altendorf at the annual media conference in Basel. “They could count on us after the outbreak of the pandemic. And we proved ourselves as a reliable partner when demand rose again.”
Despite pressure on procurement markets and logistics chains, the company ensured material availability worldwide and maintained its high delivery performance.
Net revenue increased by 11.7 percent in 2021 to 2.879 billion euros. The group experienced dynamic growth in Asia and America and a solid performance in Europe. As Africa rose, so did activity in the Middle East, with its heavy reliance on the oil and gas industry. China expanded its lead as the company’s strongest market, followed by the United States and Germany.
Incoming orders were about five percentage points higher than revenue growth. Behind this development, the CEO sees catch-up effects as well as renewed demand in almost all sectors. Advanced analysis and industrial digitization boosted the process instrumentation business. Within the laboratory instrumentation business, boosted in 2020 by the demand for PCR diagnostics, the subsidiary Analytik Jena experienced strong growth through chemical analysis products.
Vocational training campaign
At the end of 2021, the family business had 15,117 employees worldwide, 663 more than the year before. Especially in production, the company created new jobs, and almost all students were offered jobs in the company after their education. The company aims to double the number of apprentices, students and interns in the coming years.
Innovations and digitization
Of the more than 70 product innovations the company introduced last year, many are in the field of digitization. The company spent 213.4 million euros on research and development in 2021, about 7.4 percent of sales and an increase of 9.4 percent over the previous year.
Russia and Ukraine
Although the year started with records in the order book and incoming orders were ahead of the 1st quarter schedule, the conflict in Ukraine also creates uncertainty for Endress + Hauser.
“The Russian attack on Ukraine changed everything from one day to the next,” Matthias Altendorf said. “This conflict is hurting millions of people and affecting many businesses at a time when the pandemic is far from over.”
The company stopped all supplies to Russia at the beginning of the invasion. “We will abide by the full extent of the sanctions,” the CEO stressed. “At the same time, we take our responsibility to our employees and customers in Russia.”
The sales center in Russia employs 182 people. The Group intends to continue to supply companies that supply civil society and are not subject to sanctions. Think of the food and beverage industry, life sciences and the water and wastewater industry.
Strong community in the group
“It’s not about achieving our financial goals in any way, but about continuing to give our customers the best possible support in this situation,” emphasizes Dr. Klaus Endress, Chairman of the Board. The Group’s employees and management have full confidence from the Board of Directors and the shareholder family. “We want to stand together in the company and be there for our employees. Together we will get through these challenging times and remain a reliable partner for our customers. ”
European Clean Hydrogen Alliance
By joining the European Clean Hydrogen Alliance (ECHA), Endress + Hauser supports the development of a clean and competitive hydrogen industry in Europe.
ECHA’s overall goal is a CO2-neutral process industry in 2050 through the introduction of hydrogen. This is only possible through collaboration, according to Endress + Hauser’s belief.
“With our membership, we support decarbonization initiatives toward a sustainable future,” said Paul Borggreve, Corporate Director of Marketing at Endress + Hauser Group.
Expansion of silicon productioncone pressure sensors
Endress + Hauser recently expanded the Competence Center for Silicone Pressure Sensors in Stahnsdorf, Germany. With a new production hall attached to the existing building, the company hopes to continue to be able to meet the growing demand.
In 2009, the instrument manufacturer assembled the entire production of silicone pressure sensors in the technology park near Berlin. It has evolved here ever since and now requires a doubling of the floor area to 11,000 m2. Employees were previously able to take the new hall into use, but the official opening only took place now because of the corona.
“There is a great deal of expertise and knowledge behind the development and production of these sensors. Our customers around the world benefit from this, ”says Matthias Altendorf, CEO of Endress + Hauser Group. “Customers in Germany, USA, China, India and Brazil use them in their printing instruments, and our production takes place in clean rooms to meet the highest quality standards.”
In 2021, Stahnsdorf produced approximately 375,000 sensor elements, of which production was less than half of five years ago. We have now also welcomed 100 new R + D and production staff at the factory.
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Meanwhile, Endress + Hauser concentrated the worldwide logistics center in Ireland.
From now on, the Global Logistics Operations Center will manage the logistics chain. With this, it brings all the logistical decisions and movements back into the house.
“With this step, we increase transparency and customer satisfaction,” says Thorsten Wilkening, Head of Business Logistics. And Oliver Blum, Corporate Director Supply Chain, expects this move will lead to faster innovation cycles. “Now that we once again manage the global logistics network ourselves, we can act more flexibly. The level of service is increasing, and we focus more on sustainability by choosing the most optimal mode of transport. ”
The new center will join the Irish sales center in Kildare in south Dublin. There are 30 employees working for customers primarily in the life sciences and food industry.