Austrian fittings manufacturer records further increase in sales
Hoechst, Austria – 9 July 2015. Despite different developments in different market regions, the Blum Group increased its turnover yet again in the 2014/2015 financial year, thanks to product innovations, international market presence, consistent investments and the high degree of flexibility on the part of its employees. The family-owned company recorded a growth in turnover of 8% in comparison to the previous year.
Fittings manufacturer Blum from Hoechst, Austria is pleased to report that the 2014/2015 business year (from 1 July 2014 to 30 June 2015) was a good one. Thanks to innovative products, international market presence, consistent investments and flexible employees, the family-owned company based in Hoechst, Austria upped its sales by 8% in comparison to the previous year and recorded 1,555.7 million euros in turnover. 50% of the turnover was generated in the EU area, 15% in the USA.
Markets fared differently
Most of Western Europe recorded a positive growth in the last financial year. The fittings manufacturer is also pleased with the development of sales in the EU member states in Eastern Europe. Significant losses were, however, recorded in Russia and Ukraine due to the impact of the conflict there. Business continued to be good in North America, whereas the economic situation in South America was characterized by ups and downs. Most markets in Asia Pacific continued to record a positive development.
Employees – the key to success
“Our success is not only due to our product innovations but mainly due to the flexibility of our employees and the good cooperation between departments,” says Managing Director Gerhard E. Blum, underlining the importance of employees to Blum. On average, the Blum Group employed 6,515 persons worldwide, which is a growth of 328 employees in comparison to the previous year. 82 new apprentices will start a technical course of training with Blum Austria on 1 September 2015. This means that 298 trainees will be serving an apprenticeship with the Blum Group as of early September, 14 of whom are with Blum USA.
Investments during the 2014/2015 financial year
Investments by the Blum Group totalled 171.5 million euros in the 2014/2015 business year. In Austria, a new high bay warehouse was put into operation at Plant 2 in Hoechst. Construction work was started on an extension to Plant 4 in Bregenz to increase production and warehousing capacities. Blum will have doubled the capacity of its vocational training centre in Dornbirn by the time the company takes on its new apprentices in September. Blum set the course for its future corporate development by buying a 40,000 sq. meter (430,550 sq. ft.) plot of land in Dornbirn in the immediate vicinity of Plant 7. This is where construction work will be started on a new stamping centre in the autumn. Blum also invested in its locations worldwide. Production and warehousing facilities were expanded in Poland, and an extension to offices and warehousing area was completed in Russia. Warehousing capacities are currently being increased in Brazil, and construction work was started on a new central warehouse in Shanghai, China.
New products and services
Blum continued to pursue its strategic goals and carried out intensive activities to develop new products and services in the 2014/2015 financial year. The company has, for example, picked up the latest design trend (handle-less, touch-to-open frontals for kitchens and furniture throughout the home) and offers well thought-out and consistent solutions in all product groups to support the trend. This applies to box systems, runner systems for wooden drawers and to lift and hinge systems.
Blum’s latest motion technology, Tip-On Blumotion, combines mechanical one-touch opening with soft and effortless closing. It was presented at the trendsetting tradeshow in Cologne this year and was enthusiastically received by visitors. The company’s product offering is rounded off by various services, such as the Online Product Configurator which helps users quickly find the right fittings, and a new mobile app that helps manufacturers and fitters with dimensioning and the adjustment of fittings. Marketing and logistics services are being extended on an ongoing basis.
Looking ahead to the 2015/2016 financial year
All forecasts must be seen in the context of the possibility of short-term changes in markets – a phenomenon the company has had to live with since the crisis of 2008. Unexpected events in financial markets or an escalation of the conflicts in familiar crisis areas could very quickly lead to a new situation. Nevertheless, the family-owned company is convinced that its innovative products, international market presence and well-qualified and flexible employees will put it in a good position to continue this upward trend in the 2015/2016 financial year.
www.blum.com
Facts and figures as of 30 June 2015
Turnover worldwide: 1,555.7 million euros (+ 8% on previous year)
Distribution of turnover: EU 50%, USA 15%, other markets 35%
Employees worldwide (as of 30 June 2015): 6,608 employees (+ 251 on previous year)
Employees in Vorarlberg (as of 30 June 2015): 5,012 employees (+ 165 on previous year)
Apprentices with the Group (as of September 2015): 298 (14 of whom are with Blum USA);
82 new apprentices will join Blum in Vorarlberg on 1 September 2015
Investments: 171.5 million euros (122.8 million euros of which in Vorarlberg)
Press contact:
Julius Blum GmbH
Lisa Nagel
Phone +43 5578 705-2032
[email protected]
Reader contact:
Julius Blum GmbH
Industriestrasse 1
6973 Hoechst, Austria
Phone +43 5578 705-0, FAX ext. 44
[email protected]
