Duisburg, May 2, 2011. Although 2010 was shaped by sustained global economic uncertainty, the Haniel Group raised sales by around 3 billion euros and quadrupled its profit before taxes. "Our diverse portfolio, with business models that respond more or less vigorously and quickly to economic change, once again gave us a strategic advantage," explained Haniel Managing Board Chairman Prof. Jürgen Kluge. While looking forward to the rest of the current year with optimism, he warned that the economic consequences of both the natural disaster in Japan and the precarious political situation in North Africa remain unpredictable. In addition, the debt crisis in Europe and the USA will not be overcome for some time.
Sharp rise in sales
The Group's sales advanced by nearly 3 billion euros (12 per cent) in 2010, from 24.5 billion to 27.4 billion euros. Around a half of the increase originates from acquisitions, and more than 80 per cent of this portion is attributable to the Brazilian company Panpharma, in which Celesio procured a majority interest. Allowing for exchange rates and company acquisitions and disposals, sales rose by 5 per cent. A key contributor to this improvement was the ELG division, which pushed up its sales by almost 70 per cent year on year. TAKKT also achieved organic sales growth, while Celesio benefited from acquisitions made in the previous year. CWS-boco, in contrast, recorded a downturn in sales. Although its washroom hygiene and mats units remained more or less stable, sales declined sharply in the textile services unit.
Increase in operating result and income from Metro investment
The operating result climbed from 289 million to 663 million euros. The profit before taxes improved from 164 million to 620 million euros. The 2009 result had been diminished by impairments of goodwill and other intangible assets in the amount of 294 million euros. Disregarding this non-recurring factor, the increase in the result for 2010 is chiefly attributable to the improved sales situation – especially at ELG. In addition, the TAKKT division benefited from optimisation and growth initiatives in 2010, which enabled it to post pleasing earnings growth as well. Celesio also raised its income despite the burden imposed again by severe government measures regulating the healthcare markets. The advances made by ELG, TAKKT and Celesio more than made good the downturn in the CWS-boco result. This decline was prompted by both falling sales and non-recurring expenses in connection with the repositioning project entitled Focus on the Future that was launched in 2010.
For METRO GROUP, 2010 was a successful business year in which it increased its sales and operating result. The contribution made by the Metro investment to the Haniel Group's results rose from 105 million euros in 2009 to 292 million euros in 2010.
Taking employer's responsibilities seriously
During the economic crisis, Haniel successfully implemented several measures to avoid massive job losses. As the upturn starts, the Group now has at its disposal a well motivated and experienced team of employees. The number of people employed by Celesio increased because of acquisitions in particular. ELG made moderate manpower adjustments. It recruited additional staff primarily in the USA, Great Britain and Germany, where the measures included the transfer of temporary employees to permanent contracts. In view of the favourable pattern of business, TAKKT called a halt to short-time working at the end of 2010 and hired additional employees, especially in the growth segments. CWS-boco initiated the Focus on the Future repositioning project in 2010, which entails manpower adjustments in the period until 2012 – in particular in Germany, where specific outline conditions have already been agreed with the works council. The annual average number of employees increased overall by nearly 5,000 (9 per cent). Alongside action taken to develop both professional and management skills, in 2010 the Haniel Holding Company adopted a new programme to foster female top performers. Implementation is getting under way in the second quarter of 2011.
Aligning the portfolio with the future
Reviewing the way forward, Kluge commented, "Our goal is to mould an even better balanced portfolio. We intend to achieve a well adjusted blend of small and large companies consisting of both wholly owned and publicly traded entities." He said that Haniel wished to occupy an international position in which its sales and results originated evenly from the individual growth regions. "We must try even harder to strengthen our resistance to crises," remarked Kluge, referring not only to the Haniel Group, but also to the wider economy, policy makers and the general public. "We must shape the environment so that subsequent generations can enjoy at least the same chances that we have today," he continued. This would be possible, he explained, only if economic, ecological and social value is created simultaneously. "We want to be an 'and' company," insisted Kluge, "not an 'either/or' company."
An outline of how the Haniel Group is translating this ambition into practice is contained in the Annual Report 2010, entitled "Grandchildable". On the same subject, children were invited to engage in a creative interpretation of the future. For further details, klick here.http://www.haniel.com/artproject
Key figures for 2010 at a glance:
|IFRS in million euros||2009*||2010||Change in per cent|
|Profit before taxes||164||620||>+100%|
|Profit after taxes||21||454||>+100%|
|Haniel cash flow||526||543||+3%|
|Cash flow from operating activities||712||672||-6%|
|Annual average number of employees (headcount)||53.243||58.141||+9%|
|Annual average number of employees (headcount)||7.901||7.861||-1%|
|Annual average numbor of employees (headcount)||982||1.005||-1%|
|Annual average number of employees (headcount)||2.064||1.956||-5%|
|Annual average number of employees (headcount)||42.022||47.040||+12%|
|Haniel's investment result||105||292||>+100%|
* The previous year's figures have been adjusted pursuant to IFRS in connection with the finalisation of purchase price allocations; cf. explanation in the Annual Report 2010 on pages 118-119