Liebherr 2016 Results are Company's Third-Highest Ever | Construction News

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In the difficult market environment of 2016, Liebherr achieved the third-highest turnover in the group's history, with total sales of €9,009 million (U.S. $9.8 billion). Compared to the record year of 2015, this represents a decrease of €228 million (U.S. $248 million) or 2.5%.

Sales performance by geographic region

There were marked differences in business performance in the individual sales regions. In Western Europe, Liebherr's most important sales region, turnover increased. This was due in part to renewed growth in its largest market, Germany, as well as to upward trends in other important markets such as France and the Netherlands. In Italy, too, the last business year was an encouraging one. In the UK, one of the region's most important market, turnover declined slightly.

In Eastern Europe, particularly in Russia and Poland, sales revenues also developed positively. In the Near and Middle East, sales remained at the previous year’s level.

In America, by contrast, a slight fall was recorded. In Africa and the Far East / Australia, turnover was below the previous year's level in each case.

Sales performance by product area

In the construction machinery and mining segments, as well as in other product areas, Liebherr recorded a slight decline in turnover compared to its record year in 2015.

Divisions producing construction machinery and mining equipment include earthmoving, mining, mobile cranes, tower cranes, and concrete technology. Here, sales revenue fell by €224 million (U.S. $244 million), or 4.0%, to a total of €5,400 million (U.S. $5.89 billion). In the other product areas, those covered by the maritime cranes, aerospace and transportation systems, machine tools and automation systems, domestic appliances, components and hotels divisions, turnover remained at €3,609 million (U.S. $3.9 billion) – the previous year’s level.

Net result for the year

In 2016, the Liebherr Group achieved a net result for the year of €298 million (U.S. $325 million), equalling the 2015 result. The financial result improved significantly, thanks in part to the positive effects of exchange rate movements. In contrast, there was a perceptible fall in the operating result.

Employees

2016 saw a further increase in the workforce. At the end of the year, Liebherr had 42,308 employees worldwide. Compared to the previous year, this constituted an increase of 763 or 1.8%.

Investments

The Group has traditionally emphasised the importance of making regular investments in its production facilities and its global distribution and service networks. As a consequence, the investment rate last year remained at a very high level. Overall, the Group invested €751 million (U.S. $819 million). Depreciation added up to €466 million (U.S. $508 million). Depreciation in the previous year was  €448 million (U.S. $489 million).

The year 2017

It is anticipated that the coming year will see slight positive growth in the global economy, compared to 2016. The growth trend is expected to increase slightly, both in industrialized countries and in emerging and developing economies.

The Liebherr Group anticipates an increase in turnover this year. The construction machinery and mining segments, as well as other product areas are overall expected to make a positive contribution to turnover. The Liebherr Group will also continue to invest substantially in its international production facilities and in its distribution and service network. The number of people employed in Liebherr companies will again rise slightly.

On Wednesday, 26 April 2017, the Liebherr Group published its annual report 2016, which contains, in addition to detailed figures, a magazine section reviewing the past financial year. In an interview, Dr. h.c. Dipl.-Kfm. Isolde Liebherr and Dr. h.c. Dipl.-Ing. (ETH) Willi Liebherr, the second-generation family shareholders, give their summary for 2016. The annual report of the Liebherr Group can be found at www.liebherr.com/annual-report.