Liebherr Reports 2016 Financial Results
The Liebherr Group reports it achieved its third-highest turnover in its history. Total sales were €9,009 million ($9.825 billion) for the year, which is a €228 million ($248.7 million) or 2.5% decrease to 2015, a record year for the company.
However, Liebherr recorded a slight sales decline in divisions producing construction machinery and mining equipment, including mobile cranes, tower cranes, concrete technology, mining, and earthmoving. Sales revenue fell by €224 million ($244.3 million), or 4%, to a total of €5,400 million ($5.889 billion). In the other product areas, which cover maritime cranes, aerospace and transportation systems, machine tools and automation systems, domestic appliances, components and hotels divisions, turnover remained the same as the previous year’s level at €3,609 million ($3.936 billion).
In Western Europe, turnover increased due to renewed growth in Germany, France, and the Netherlands. The U.K.’s turnover declined slightly. In Eastern Europe, particularly in Russia and Poland, Liebherr’s sales revenues were positively. In the Near and Middle East, sales remained at the previous year’s level. In the United States, Liebherr’s sales slightly fell, as did Africa and the Far East/Australia.
In 2016, the Liebherr Group achieved a net result for the year of €298 million ($325 million), equaling the 2015 result. Financials improved significantly due to the positive effects of exchange rate movements. In contrast, there was a perceptible fall in the operating result.
Liebherr continues to invest in its production facilities and global distribution and service networks. Its investment rate remained high last year, and overall, the group invested €751 million ($819 million). Depreciation added up to €466 million ($508.24 million). In 2015, depreciation was €448 million ($488.6 million).
The company has also increased its workforce by 1.8%, adding 763 employees for a total of 42,308 employees worldwide.
In 2017, Liehberr expects to see slightly positive growth in the global economy, compared to 2016, and it anticipates an increase in turnover this year. 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.