Schuler's sales and profits set a new record

On March 2, 2018, Göppingen – the press manufacturer Schuler Group set a new record for sales and profit in 2017. Schuler's headquarters is located in Göppingen, Germany. As a global market leader, Schuler announced its 2017 sales totaling 1.23 billion euros (previous year: 1.17 billion euros), with strong growth in the North American and Chinese markets. Compared with the previous year's operating results (EBITDA, profit before interest, taxes, depreciation and amortization) of €123 million, this year's increase to 141 million euros. Schuler's EBITDA rate increased from 10.4% in the previous year to 11.5%, solidifying Schuler's position as a leader in the German mechanical and equipment engineering industry. In addition to the cost structure optimization of the Schuler plant in Germany under the new manufacturing concept, the aggressive investment of Awe and AWEBA also contributed significantly to the financial report performance of the year (including the total data for the whole year). The property rights ratio hit a new high of 39.0%, which laid a solid foundation for the future development of the Schuler Group.

At the financial news conference in Göppingen, Group CEO Stefan Klebert said: “The healthy financial situation in 2017 reflects the changes we have made in the past few years. The new manufacturing concept and the upsetting The acquisition of AWEBA has brought new earnings growth. These two acquisitions not only make an important contribution to the Group's finances, but also help Schuler open up strategic segments of domestic and foreign markets."

Order surge in the fourth quarter

In 2017, Schuler's new orders in various sectors performed unevenly. Orders received by Schuler China, the industrial sector and mold solutions (mainly AWEBA) increased by 20%. In contrast, Schuler's automation department's orders are significantly reduced. The main reason for this trend is that most automakers have invested heavily in expanding the electric vehicle business and have suspended investment in new production capacity. Schuler itself has not been adversely affected. Schuler also offers stamping equipment for the manufacture of electric vehicle body parts, motor punching and battery housings.

In 2017, the Group's total new orders fell slightly from EUR 1.2 billion in the previous year to EUR 1.14 billion. In the fourth quarter of 2017, orders surged, accounting for one-third of the year. As of December 31, the order reserve remained at €900 million (previous year: €1.01 billion). In the first few weeks of 2018, new orders remained strong in the last quarter of 2017 and steadily increased, especially in the automation business. In short, Schuler expects that the sales and profits of special projects in 2018 will reach the level of the previous year.

Europe has the largest sales share

In 2017, sales in Europe were 528 million euros (previous year: 524 million), accounting for the largest share of total sales (1.23 billion euros) in the fiscal year. Sales in China increased from €290 million in the previous year to €310 million. Schuler's business growth in North America has grown strongly from 271 million euros in the previous year to 328 million euros. As of December 31, 2017, the total number of employees of the group dropped slightly from 6,617 in the previous year to 6,570, of which 2,333 were outside Germany (2,284 in the previous year).

2017 was the first year of implementing a new manufacturing concept, and the Group's German plant achieved an increase in efficiency and savings of approximately 30 million Euros. This trend still exceeds the target in the direction of positive sales growth.

“New markets and the growth brought about by innovative products”

Schuler's pre-tax profit for 2017 was €106 million, far exceeding the previous year's €95 million. In 2017, after the Group's technology and exhibition center in Tianjin, China entered the stage of successful operation, Schuler sold it to industry partners, which contributed about 0.18 billion in business results. Yang Forging and AWEBA also made positive contributions to sales and profitability.

Mr. Klebert, CEO of Schuler, said: “Yangteng is a good illustration of the important growth drivers for new markets and innovative products. The presses for Yangjin forging are growing in the US and in the future in India, Vietnam, Sri Lanka and selected Europe. The market has laid a solid foundation for product supply. At the same time, the link-driven press released by Yang Forging in 2017 became its first equipment with a pressure of 2,500 tons (developed by Schuler's China, Brazil and Germany teams) ).

Digital and new industry 4.0 solutions

Following the introduction of the MSP2-400 stamping equipment, Schuler has stepped up the development of mid-range products. Schuler has launched numerous internal projects for the digitization of its future products and workflow. For example, at the Gommingen plant, the company has established a professional R&D center for digital monitoring of component locations and temperature and process optimization for data analysis. In the Schuler Innovation Building in Göppingen, the training rooms are equipped with user terminals, which are fully prepared for adapting to more and more connected press lines. At the International Sheet Metal Processing Exhibition (Euroblech) in Hanover, Germany, in October 2018, Schuler will also showcase the applications of Industry 4.0 in its smart stamping shop.

The share capital base is further improved

With the good profitability trend in FY2017, Schuler (the Austrian ANDRITZ Group holds 95% of its shares) can further increase its equity base. Shareholders' equity increased from the previous €438.4 million to €498.4 million. The share capital ratio rose from 32.2% to 39.0%, the highest value since the company was listed in 1999. Schuler CFO Norbert Broger said: "Schuler's assets and liquidity are very healthy and beneficial to the company's development, allowing us to increase our investment while buffering a cyclical downturn, although this has not happened."

Capital expenditures for 2017 fell as planned from €45.8 million in the previous year to €26.9 million, still exceeding the depreciation. Schuler's newest technology center in Göppingen – the Schuler Innovation Building was officially launched a few months ago, and capital expenditures in 2016 reached a record high for this project. Schuler's net current assets (liquidity less financial debt) in 2017 was €125.4 million, surpassing the previous year's €116.3 million.

Figure 1: In the last fiscal year, the press manufacturer Schuler Group achieved record sales (€1.23 billion) and earnings (€141 million).

Figure 2: After the introduction of the MSP2-400 stamping equipment, Schuler has stepped up the development of mid-range products.

Figure 3: In the Schuler Innovation Building in Göppingen, the training classrooms are equipped with user terminals, which are fully prepared for adapting to more and more connected press lines.

(The pictures in the text are from Schuler)