Successful financial year 2019: MANN+HUMMEL in strong position to face effects of COVID-19
MANN+HUMMEL Technology Center Ludwigsburg, Germany (Image source: MANN+HUMMEL Intern. GmbH & Co. KG)
The turnover generated by the global filtration experts rose to EUR 4.2 billion, the highest turnover in the company’s almost 80-year history.
Both the Transportation and Life Sciences & Environment business segments contributed to this positive development. Despite challenging conditions arising from factors including Brexit, trade disputes and mobility change, operating earnings before interest and taxes (EBIT) in 2019 were significantly higher than in the previous financial year. The EBIT rose by EUR 59.7 million or 63.9 percent to EUR 153.3 million. In connection with the 2019 restructuring program, expenses for severance payments of EUR 44.9 million were incurred. Adjusted for these expenses, the operating result was EUR 198.2 million. In 2018, sales revenues amounted to EUR 3.9 billion with an EBIT of EUR 93.6 million.
“For MANN+HUMMEL, 2019 was a challenging year, yet one that we were able to end with a very positive operating profit. This year will certainly not be easy either due to the economic consequences of COVID-19, but we are on a sound financial footing. We will do everything to ensure that the company has a sustainable future while at the same time consolidating our role as leaders in the filtration sector,” said Kurk Wilks, President and CEO of the MANN+HUMMEL Group. “On behalf of the Board of Management, I would like to thank our employees for their tireless commitment, particularly during the coronavirus crisis. I have been most impressed with the innovation and team spirit displayed by our staff.”
Stability with continued high investments
In the previous financial year, the MANN+HUMMEL Group invested in future profitable growth. One of the measures taken by the company was to set up a new production site for the Life Sciences & Environment business unit. Since the end of 2019, the Chinese city of Kunshan, not far from Shanghai, has been home to Asia’s largest plant of the Life Sciences & Environment unit, which also develops the well-known Filter Cubes for reducing air pollutants.
“We have consistently lowered our costs in the past year through process improvements. We have made good progress with our global restructuring. As a result, we were able to achieve positive effects on earnings as early as 2019,” said Emese Weissenbacher, Executive Vice President and Chief Finance Officer. MANN+HUMMEL carried out a restructuring in February 2019, with the aim of saving around EUR 100 million worldwide.
Outlook: Well-positioned to invest in strategic business fields
MANN+HUMMEL expects the financial year 2020 to be affected by the financial crisis precipitated by the COVID-19 pandemic. “Nevertheless, we do not currently foresee any liquidity bottlenecks or other existential risks arising due to the crisis. MANN+HUMMEL will continue with its transformation strategy and continue to invest in restructuring, new strategic business fields, research & development in the area of highly innovative filtration solutions as well as in digitalization”, said Emese Weissenbacher.
Since the start of 2020, MANN+HUMMEL has had a new Board of Management in place: the Supervisory Board of MANN+HUMMEL Verwaltungs GmbH appointed Kurk Wilks as the new President and CEO. Kurk Wilks is leading the Group alongside Executive Vice President and Chief Finance Officer Emese Weissenbacher and Chief Operating Officer Nic Zerbst.