Hilti posts strong results for 2016Published 16/5, 2017 at 12:14
The Hilti Group has boosted 2016 net income by 17.3% to CHF481M(€450M) from €383M on net sales that increased 5.7% to €4334M from €4101M the previous year.
The growth was mainly driven by North America and Europe. In North America, the Hilti Group posted growth of 11.6% in local currencies. In Europe, sales were up 6.2%. The regions of Eastern Europe, Middle East and Africa, up 5.6%, and Asia/Pacific up 3.3%, remained on growth track. Due to the persistent economic crisis in Brazil, Latin America was down 1.2% on the previous year’s performance. As a result of the investments made in software and digital solutions over the past few years, online sales have grown beyond €935M.
Despite continued high investments in new products, services and software, a further expansion of direct sales capacity and stronger growth, Hilti succeeded in maintaining free cash flow of €268M. Research and development spending of €262M was 17% higher than in the previous year. The number of employees increased by 5% to over 24,600.
“Despite many uncertainties in the global environment, the continued and consistent implementation of our Champion 2020 Corporate Strategy has spurred accelerated growth and yet another positive development of our operating result. Hence, we have fully achieved our objectives in the year under review,” said Hilti Group chief executive Christoph Loos.
“In the current year, we will continue to invest in our portfolio and the expansion of our sales capacity. If the market environment remains stable, we expect a slightly higher sales growth than in 2016. Furthermore, we reckon on a constantly high return on sales from operations and a strong cash flow.”