TRUMPF Increases Sales to $3.6 Billion
In the fiscal year just ended, their sales increased by 10.8 percent and orders received increased by 21 percent to $3.97 billion.
Posted: July 26, 2017
The TRUMPF Group was able to generate a significant 10.8 percent increase in sales in the 2016/17 fiscal year ending June 30, 2017. According to preliminary calculations, sales for 2016/17 amounted to $3.62 billion (up from $3.27 billion in 2015/16). Orders received rose to $3.97 billion (up from $3.27 billion in 2015/16) – an increase of 21 percent.
Once again, Germany was the biggest single market (sales of $750 million), followed by the U.S. ($486 million) and China ($465 million). Sales in South Korea – where many of the company’s customers from the electronics industry have their base – were particularly encouraging, rising by 57 percent to reach $244 million, making South Korea their fourth-biggest market worldwide in the last fiscal year. In Europe, Italy (up 34 percent on the last fiscal year) and the Netherlands (up 55 percent) were the top individual performers. In the Netherlands, sales were boosted by EUV business with chip manufacturer ASML. TRUMPF supplies ASML with lasers that use extreme ultraviolet radiation to process chip surfaces for the computer industry. TRUMPF subsidiary Hüttinger (Freiburg, Germany) had a good year, recording sales of $138 million – an increase of 52 percent on the previous fiscal year.
The number of employees in the Group rose by six percent to reach some 12,000. The company attributes the Group’s increase in sales to a strong global economy. “In many markets we exceeded our targets, with an equal contribution from all of our products,” said Nicola Leibinger-Kammüller, the chief executive officer of TRUMPF. “But we know that the current investment climate has been influenced by external factors, such as the euro exchange rate and raw materials prices.”
She also pointed out that the company has used the last year to drive ahead with their investment in the digital business platform AXOOM, as well as the expansion of locations in Germany and abroad. Examples include the completion of production and sales facilities in Warsaw, Poland and Neukirch, Germany, as well as the logistics center at headquarters in Ditzingen, built at a cost of $40 million and due to be unveiled to the public on October 19, 2017. The company has also constructed a $15 million Industry 4.0 demonstration facility in Chicago, which will be opened on September 12, 2017, with TRUMPF Group Management in attendance.
“Clearly there are political differences between Germany and the U.S. at the moment, and that makes it all the more important that we give our American customers a clear signal that we see the U.S. as one of the main markets for digital production,” noted Leibinger-Kammüller. In April of this year, the company announced its intention to expand Group Management effective July 1, 2017, and to redistribute responsibilities. The TRUMPF Group has also embraced a new organizational structure, with the goal of driving the company forward along with future technologies such as EUV, additive manufacturing and digitalization.
As far as political developments and their impact on the market is concerned, Leibinger-Kammüller was pleased to report that there has been hardly any impact so far on business in Europe and elsewhere. “In many cases, political uncertainties have simply not affected the economic situation,” she said. “It’s clear that customers and suppliers have learned to respond to the increased volatility with a high degree of flexibility.”
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