Duisburg, 30 April 2012. The Haniel Group benefited from the economic upturn in the first half of 2011, which however weakened significantly in the following months. Overall, the Haniel Group held revenue almost stable at EUR 27.3 billion. Development in the divisions was not uniform. ?WS-boco, ELG and TAKKT generated revenue increases, while Celesio posted a slight decline. "The diversified portfolio of business models which react to economic developments with varying strengths and speeds again proved to be a stabilising factor," said Prof. Jürgen Kluge, Chairman of Haniel's Managing Board.
Significant growth in revenue at ELG and TAKKT
At EUR 27.3 billion, Group revenue remained almost stable compared to EUR 27.4 billion in the previous year. However, development in the divisions varied greatly. Business at TAKKT showed extremely encouraging growth, both at TAKKT EUROPE and at TAKKT AMERICA. The revenue growth of six per cent for the division is due to the positive economic conditions in the first half of the year as well as the growth initiatives launched at the company. ELG increased revenue by four per cent. The company profited from the positive macroeconomic development during the first half of the year, which also gave the global stainless steel industry positive stimuli. Despite a decline in orders in the second half of the year, ELG's output tonnage was slightly higher year-on-year, as was the price of nickel. CWS-boco generated two per cent revenue growth, attributable primarily to greater customer loyalty and the higher number of wearers of rented work wear in the core German market. Celesio’s revenue decreased by one per cent. Business at Celesio suffered from cuts in the healthcare sector in many European countries.
Operating profit declines, Metro's investment result improves
The Haniel Group’s operating profit declined markedly from EUR 663 million to EUR 330 million. Profit before taxes was EUR 390 million, significantly below the prior-year figure of EUR 620 million. The declining profit was due primarily to the 58 per cent decrease in Celesio's contribution to earnings. The reason for this decrease was – in addition to government austerity measures affecting the healthcare sector – a EUR 116 million impairment charge on goodwill and other intangible assets. In addition, considerable non-recurring expenses were incurred in 2011 after the Celesio Managing Board launched a strategic realignment of the division in response to the business development. ELG's operating profit fell by eight per cent despite an increase in revenue. This was caused by a higher intensity of competition and the write-down of a receivable. TAKKT successfully generated above-average revenue growth of 50 per cent, or – adjusted for the previous year's goodwill impairment – 29 per cent. CWS-boco's earnings improved significantly (more than 100 per cent) year-on-year, amounting to EUR 41 million.
METRO GROUP traded in a difficult environment in 2011. Revenue declined by one per cent and operating profit fell by two per cent.
The sale of real estate belonging to Metro’s founding shareholders increased Haniel’s income by EUR 172 million. While in the previous year the income contribution for Haniel from the entire Metro investment was EUR 292 million, in 2011 it amounted to EUR 329 million, including income from real estate.
The Group embarks on a new course
In 2011, the Haniel Group also laid key strategic foundations. Following the complete re-staffing of management at CWS-boco in 2010, Haniel initiated further important changes in management in the past year. Markus Pinger was named the new Chairman of the Managing Board at Celesio and an additional two new members of the Managing Board were appointed, Dr. Marion Helmes and Stephan Borchert. A new Chairman of the Managing Board was appointed at the METRO GROUP, and the role of Chief HR Officer was reinstated.
Employee headcounts developed differently in the divisions and at the holding company. Overall, the annual average number of employees at the Group fell by one per cent. At CWS-boco, the "Focus on the Future" repositioning project resulted in slightly declining employee figures. The headcount increased at ELG, mainly due to the acquisition of the British company, Recycled Carbon Fibre Ltd. TAKKT also hired new employees due to the positive business development. Celesio reduced its staffing level slightly in the course of its "Operational Excellence Program" and staffing adjustments at its headquarters in Stuttgart and other international administrative offices. At Franz Haniel & Cie. GmbH, the adjustment and realignment of the Holding Company's role made staffing adjustments necessary, although this will not impact the number of employees until 2012. It was possible to achieve this change without compulsory redundancies.
Getting ready for the upswing
2012 will be a challenging year, both for the global economy and for Haniel. Haniel expects to grow again in 2013. "Haniel is getting ready for the next upswing – with our 'Haniel 2020' strategic project launched in 2010 and a gradual reduction of debt at the holding-company level," said Kluge. "We aim to use our portfolio to again realise sustainable economic growth, while at the same time maintaining or building on our economic, ecological and social values, so as to continue growing as a AND company," said Kluge.
The 2011 Annual Report discusses how the Haniel Group is implementing this objective.
2011 key figures at a glance:
|EUR million (IFRS)||2010||2011||% change|
|Profit before taxes||620||390||-37%|
|Profit after taxes||454||236||-48%|
|Haniel cash flow||543||436||-20%|
|Cash flow from operating activities||672||813||+21%|
|Annual average number of employees (headcount)||58.141||57.828||-1%|
|Annual average number of employees (headcount)||7.861||7.816||-1%|
|Annual average number of employees (headcount)||1.005||1.068||+6%|
|Annual average number of employees (headcount)||1.956||2.003||+2%|
|Annual average number of employees (headcount)||47.040||46.669||-1%|
|Haniel investment result*||292||329||+13%|
* including income from real estate sales
New form for "enkelfähig" magazine
At the same time as the 2011 Annual Report, we are launching the third edition of our company magazine, "enkelfähig", which examines the issue of "growth" from a wide variety of angles. The magazine will also be available as iPad app shortly after.