Freudenberg Reports Solid Results Globally and in North America
DETROIT, April 1, 2020 /PRNewswire/ -- The Freudenberg Group reported solid results for its 2019 financial year with sales of $10.6 billion (€9.46 billion) globally and $2.84 billion (€2.54 billion) in North America.
The Group's global sales were about the same as the previous year's total of €9.45 billion, despite a difficult economic and geopolitical environment. Acquisitions and divestments, basically offset each other.
North American sales totaled $2.84 billion (€2.54 billion) with employment at 10,562 in fiscal 2019, declines of about two percent compared to 2018 that were primarily due to the sale of Freudenberg IT (FIT) early last year. North America's 10 business groups accounted for 27 percent of Freudenberg's 2019 sales, about the same percentage as in 2018.
The Group's future viability was strengthened by its broad positioning in about 40 markets and 56 countries with an intensified focus on new-product innovations. More than one third of Freudenberg's 2019 fiscal-year sales were generated by products introduced less than four years ago. Last year the company also invested a record $538 million (€481 million) in research and development activities.
"We have once again invested strongly in the future of the Group, specifically in equipment, plants, acquisitions and above all in the three focus areas of the 2018-2020 strategy period: mobility, digitalization and sustainability," said Dr. Mohsen Sohi, Freudenberg Group CEO. "In addition, as an innovative technology company, we have once again significantly expanded our research and development activities, building on an already high level of innovation."
Freudenberg also continued to invest in both manufacturing and R&D facilities in North America, spending $82.4 million (€73.6 million) spread out across different business groups.
The Group's expansion in North America included the start of construction of a new global headquarters and plant for Freudenberg Medical in Beverly, Massachusetts, and new sales and warehouse facilities for Freudenberg Oil & Gas Technologies in Midland, Texas. The company also took a majority share of XALT Energy in Midland, Michigan, after acquiring a minority stake in 2018.
"Freudenberg companies in North America accounted for 27 percent of the Group's global sales and remain its second largest market after Europe," noted Bob Evans, president of Freudenberg North America. "Due to the spread of the coronavirus and resulting containment measures, we expect the business environment to remain challenging during the 2020 financial year. As a result, we are planning cautiously. Nevertheless, we intend to continue investing in strategic areas such as mobility transformation, digitalization and sustainable solutions, including the further strengthening of our portfolio through acquisitions."
About the Freudenberg Group
Freudenberg is a global technology group that strengthens its customers and society long-term through forward-looking innovations. Together with its partners, customers and research institutions, the Freudenberg Group develops leading-edge technologies and excellent products and services for about 40 markets and for thousands of applications: seals, vibration control components, technical textiles, filters, cleaning technologies and products, specialty chemicals, and medical products.
Strength of innovation, strong customer orientation, diversity, and team spirit are the cornerstones of the Group. The 170-year-old company holds strong to its core values: a commitment to excellence, reliability and pro-active, responsible action. In 2019, the Freudenberg Group employed nearly 49,000 people in some 60 countries worldwide and generated sales of €9.46 billion. For more information, please visit www.freudenberg.com
SOURCE Freudenberg
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