Hilti Reports Growth Amid a More Demanding Environment - 01/10/2019
The Hilti Group, a global leader in providing technology-leading products, systems and services to the worldwide construction industry, has increased sales over the first eight months of the year by 4.2 percent, to CHF 3908 million. The construction technology group posted significant growth in terms of both operating result (11.1%) and net income (+11.2%).
“Due to political tensions at both the international and local levels the economic climate has not grown any easier. Overall, the market dynamics have eased somewhat, which can be seen in the slight reduction of our growth rates,” commented Hilti CEO Christoph Loos on the intermediate result.
In local currencies the rise in sales over the last eight months was 6.4 percent. Negative currency influences have increased in recent months due, among other factors, to the renewed weakness of the euro and devaluation of the British pound.
Growth pacesetters vs. ongoing uncertainties
The regions of Europe and North America were the growth pacesetters, both advancing 7.1 percent in local currencies. Latin America also posted strong growth, at 9.4 percent, with the recovery in Brazil making a significant contribution. The Asia/Pacific region achieved growth of 4.7 percent and saw negative influences in the difficult environments in both Hong Kong and Korea. The situation in the Eastern Europe / Middle East / Africa region (+2.8%) was mixed with Russia and the Eastern European markets contributing to growth while the course of business in the Gulf States and in Turkey remained difficult due to ongoing political uncertainties.
Despite increasingly negative currency influences and continuing investments, the Group’s operating result was 11.1 percent higher (CHF 506 million) while net income also grew by 11.2 percent (CHF 365 million). This resulted in solid levels for both return on sales (12.9%) and return on capital employed (21.6%).
Against the background of local challenges in certain countries and international trade disputes, the Hilti Group anticipates an increasingly volatile economic environment. For the full year the company expects growth rates in both sales and profitability to be in the mid-single-digit range.Last updated: 01/10/2019