Fiscal year 2008/09: Massive decline in demand – currently noticeable recovery – considerable reduction of short-time work – good sales opportunities for energy-efficient applications
As a result of the global financial and economic crisis the Wieland Group was affected by a massive downturn in demand in the fiscal year 2008/09 (1 Oct. 2008 to 30 Sept. 2009). Turnover in the Wieland Group fell from EUR 2,925 million in the prior year to EUR 1,742 million. Besides the low metal prices, this was due to a decrease in sales quantity from 521,000 tonnes in the prior year to 392,000 tons in the fiscal year 2008/09. The result for the year was EUR 6 million (prior year: EUR 47 million).
Wieland-Werke AG with the works in Ulm, Velbert-Langenberg, Villingen-Schwenningen and Vöhringen achieved a turnover of EUR 1,186 million (prior year: EUR 2,087 million and a result of EUR 24 million (prior year: EUR 46 million).
At 270,500 tonnes, sales quantities remained clearly below the prior-year level (391,000 tonnes). The export share was 67 percent.
Business development
The global financial and economic crisis had a dramatic impact on sales of semi-finished products in copper alloys. There was a stark decline in demand in nearly all our customer industries, particularly in vehicle construction and mechanical engineering as well as in the electronic and electrical engineering industries. At the same time, there was an almost complete collapse in demand in the important market regions North America, Europe and Asia. Because of weak demand, export business with Asia and North America was unable to fully exploit the positive impulses from the higher valuation of the US dollar.
Short-time work safeguards employment
Due to the demand-related under-utilisation of production, all four locations of Wieland-Werke AG resorted to a progressive introduction of short working hours in December 2008 which was at its highest level in March 2009 with some 3,350 employees affected. The number of employees remained at a constant level compared to the previous year. In the fiscal year 2008/09, an average of 6,465 (prior year: 6,491) employees worked for the Wieland Group, of whom 4,275 for Wieland-Werke AG (prior year: 4,332).
Capital expenditure
Investments in tangible assets during the fiscal year 2008/09 totalled EUR 91 million (prior year: EUR 123 million) in the Wieland Group and EUR 65 million (prior year: EUR 78 million) at Wieland-Werke AG.
Metal prices
Copper, zinc, tin and nickel prices fell noticeably during the first quarter of the fiscal year but rose again in a steady upward trend from the start of 2009. This was true, in particular, for copper prices, which reached a low in December 2008 and then doubled by the end of the fiscal year, although even then the average was 36 percent down on the prior-year level.
Dividends
At the General Meeting on 5 March 2010, a dividend of 10 percent (prior year: 20 percent) on the subscribed capital was declared. The interest paid this year on profit-sharing rights of the employees was 5 percent.
Fiscal year 2009/10
Noticeable recovery, considerable reduction of short-time work
Since January 2010 there has been a noticeable recovery with regard to incoming orders. This development mainly results from the growing demand, particularly from Asia, for products for the electronic and electrical engineering industries. However, in other sectors such as vehicle construction, mechanical engineering as well as construction there are still no signs of recovery.
As a result of the improved order situation short-time work has been considerably reduced: at the Ulm works some 350 and at the Vöhringen works some 150 employees are currently (March 2010) on short time. As from April 2010, short-time work will be further reduced to presumably 260 employees. How sustainable the current recovery is can, however, not be reliably predicted at the moment. Another extension of short-time work cannot be ruled out either.
Low positive result expected
Given the current global economic conditions, we anticipate a low positive result for the fiscal year 2009/10.
Energy – subject of the future
The Wieland Group sees good sales opportunities regarding energy-efficient and climate-friendly applications. There are numerous applications for Wieland products, for example, in electronic and electrical engineering, in telecommunications, in the field of renewable energies, in electric mobility, air conditioning, refrigeration and heating. Copper is characterised by outstanding electrical and thermal conductivity. The use of components made of copper materials, therefore, leads to a substantial increase in energy efficiency of the equipment.
Operator of the new extrusion press in Vöhringen
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