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Würth Group satisfied with performance during pandemic

2020-07-22    Author:   Source:www.fastenerandfixing.com   Views:174    


The Würth Group reported sales of €6.9 billion in the first half of 2020, down 3.1% over the same period last year, however its eBusiness share increased to 20%.

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Adjusted for currencies, sales dropped by 2.9%. Sales declined both in Germany (-0.5%) and, to a greater extent, abroad (-4.9%). “Considering the current backdrop of a global pandemic, were are more than satisfied with this relatively stable development,” said Robert Friedmann, chairman of the central managing board of the Würth Group.

“Due to the skilled trades being regarded as essential businesses and our successful establishment of a digital infrastructure in ordering and supply processes in previous years, we were always able to deliver and did not suffer any supply bottlenecks.”

In Germany, the Würth Group generated sales of €2.9 billion, which corresponds to negative growth of 0.5%. “We profited from the fact that the construction industry still posted growing sales in the first months of 2020,” Friedmann explained. “As an automotive supplier, on the other hand, we do feel the effects from the still suffering automotive industry.”

Adolf Würth GmbH & Co. KG, the original parent company and at the same time the largest company of the Würth Group, generated sales of €1,061 million including intragroup sales in the first half of 2020 (+2.5%).

In the first half of 2020, global sales in the Construction Division grew by 9.2% over the same period last year, driven by the continuing strong demand in the construction sector. The companies in the Electrical Wholesale business unit also reported strong growth of 13.7%. Positive factors influencing the unit’s sales development included stable supply capacities and an acquisition in Spain, which had been completed in 2019.

At €280 million at the end of the first half of 2020, the operating result of the Würth Group is significantly down on the previous year (2019: €340 million). “This is a setback we have to deal with. Still, considering the circumstances, we are quite satisfied with these results. Now, we are pursuing all our options in terms of sales activities and cost management to make sure we are able to turn this crisis into an opportunity,” Friedmann concluded.

eBusiness acts as stabiliser during the crisis
Würth Group companies in countries heavily affected by the Covid-19 disease such as Italy, France and Spain felt the effects of the crisis. However, despite the overall economic standstill in many countries, e.g. in France, which imposed a full lockdown in April and many restrictions in May, companies were still able to celebrate great successes through their eBusiness channels.

The strategic structural shift towards digital channels such as online shops, the Würth App and e-procurement has resulted in Würth France posting eBusiness growth of 27.8% in the first half of the year. Contactless procurement solutions proved to be an ideal solution.

The Group’s performance and efficiency is still driven by three factors including its multi-channel strategy, its diversification of risk through its international footprint and diverse business models. As a result, the Group was always able to remain a flexible partner for its customers in the skilled trades and the industry throughout the coronavirus crisis.

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