Dortmund. In spite of the financial crisis and the recession, the Wilo Group continued its growth trend also in 2008 and – as it is stated – reached “extremely satisfactory results”. At the annual press conference on 19 May 2009, the two members of the Wilo Board Oliver Hermes (Finances, Controlling and Human Resources) and Dr. Holger Krasmann (Technology and Production) presented the annual accounts for 2008. Wilo is one of the world‘s leading manufacturers of pumps and pump systems for heating, cooling and air-conditioning as well as for water supply and sewage and drainage. The family-owned company arose from the factory for copper and brass products Louis Opländer Maschinenbau established in 1872 in Dortmund.

 

On 24 July 2008, the former WILO AG changed its legal form to WILO SE. The conversion into a European stock corporation is a consequence of the Group’s successful internationalisation. WILO SE acts as the parent company of the Wilo Group which currently includes 62 fully consolidated production and sales companies in 42 countries in Europe, Asia, North and South America.

The Wilo Group was once more able to expand its business activity in the reporting year: thanks to organic growth by 5.4 %, it achieved a new record turnover amounting to 977.2 m. Euros. The cash flow from operative business activity increased by 78.0 m. to 118.5 m. Euros compared to the previous year. The EBIT of 88.6 m. was 10.9 % below the value of 2007. In relation to the turnover, the EBIT decreased from 10.7 % to 9.1 %.

 

Equity decreased by 5.1 % to 282.5 m. Euros corresponding to an equity ratio of 42.3 % of the total assets. The number of employees increased by 3.5 % to 6,024 people on average.

Oliver Hermes, member of the Wilo Board for Finances, Controlling and Human Resources, explained the most important key figures and developments to the press. He pointed out that the Wilo Group could also not completely elude the negative effects of the global financial and economic crisis. The negative trend affected Wilo particularly with drops in demand on different sales markets and with partially massive weakening of currencies important for the company. This particularly applies to the South Korean won, the US dollar and the British pound. Moreover, the company had to cope right into the third quarter of the year with considerable increase in prices for raw materials.

In Western Europe, turnover increased by 4.5% on average. On the German domestic market the strong demand for energy-efficient heating pumps resulted in a growth by 8.8 % to 197.3 m. Euros. The business development in France, the second most important national market for Wilo, was on a similar level reaching an increase of 7.3 % to 112.5 m. Euros. In Asia, a slight increase of turnover could be achieved on balance, even though in South Korea – despite a nominal increase in the national currency by 9.0 % – a decrease by 14.2 % had to be recorded. This was caused by an average devaluation of the South Korean Won compared to the Euro by 26.8 % during the year. The highest growth in turnover achieved in a region was – despite increasing slowdown tendencies – in Eastern Europe. Here, turnover increased by 8.0 %.

 

In view of the global development Oliver Hermes announced that the market segment Heating and Air-conditioning increased by 4.3 % and the market segments Water as well as Drainage and Sewage by 6.8 %.

Mr. Hermes continued to explain further individual items of the annual accounts 2008. The clear increase of cash flow by 78.0 m. to 118.5 m. Euros is primarily due to the improved working capital performance. The reduction of the EBIT (from 99.4 to 88.6 m. Euros) and the EBIT margin (from 10.7 to 9.1 %) results – beyond the already mentioned increase of costs for raw materials and the devaluation of foreign currencies – from the clearly increased effort for the development of new products and markets. The regressive result of the Group after tax is mainly conditioned by the declined financial result.

 

Mr. Hermes commented the Group’s assets position in a positive way: “The total assets of the Wilo Group increased by 4.5 % to 668.1 m. Euros compared to 31 December 2007. The long-term assets increased by 7.6 % to 251.6 m. Euros and the current assets by 2.7 % to 416.5 m. Euros.”

 

The investments into fixed assets and non-material assets increased by 12.7 % to 52.3 m Euros. The total effort for R&D increased in 2008 – compared to the previous year – by 25.0 % to 34.5 m. Euros and reached 3.5 % of the turnover.

Dr. Holger Krasmann, member of the Wilo Board for Technology and Production, then informed about product and process innovations. Investments in the Heating and Air-conditioning segment in 2008 focused on the extension and optimisation of the high-efficiency series “Wilo-Stratos”.

The focus of product innovation in the reporting year was the completion of the ground-breaking Decentralised Pump System “Wilo-Geniax” which saves on average 20 % of heating energy compared to conventional central heating installations. For this product, extensive successful field tests were carried out in a large number of different buildings. This meant that all conditions for a market launch in spring 2009 were fulfilled.

Both members of the Wilo Board were quite reluctant to give quantitative forecasts for the current business year. The Wilo Group is well positioned on an international level in order to counter the global recession in 2009 and to emerge from the economic crisis stronger than before. In spite of the difficult basic conditions, the well-established company relies also for 2009 on a weakened continuation of the long-standing growth at decreasing EBIT and lower EBIT margin. The cautious confidence is also confirmed by the stable development of turnover in the first quarter of the year as well as by the broad acceptance of the product novelties introduced at the leading trade fair ISH in Frankfurt in March.