Positive Business Trend
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EagleBurgmann with renewed sales growth in 2011
The EagleBurgmann Group has been operating highly successfully for
many years throughout the world, providing products and services in
the sphere of industrial sealing technology for diverse sectors of
industry. Fiscal 2011 at EagleBurgmann was marked by a sharp
upward trend in new orders during the first half-year, after which the
incoming order volume stabilized at a high level. Sales rose by 10.9
percent to EUR 752.8 (previous year: 678.7) million, with overseas sales
and sales in Germany respectively accounting for 83.7 and 16.3 percent of
that amount.
International upswing
In contrast to 2010, in which standard business also benefited from
catch-up effects, EagleBurgmann's performance in fiscal 2011 was
above all shaped by project business. "We have been very successful
in positioning ourselves in the defined growth markets like the BRIC
countries and the Middle East: we succeeded in reinforcing our already
strong position in India, and we are now market leader in China", says
Dr. Stefan Sacré, CEO EagleBurgmann Germany. However, the
healthy business on the project front has also made for a positive trend
in Europe as well.
Substantial investment
Production capacity in the Middle East was ramped up in order to cover
the rising demand from the oil & gas and petrochemical sectors for
products and services, and two fully equipped service centers were
opened in 2011 in the Saudi cities of Jubail and Yanbu. The past five
years have seen sales in Saudi Arabia rising annually by up to 45
percent, and the aim is to increase market share there in the sphere of
mechanical seals to 30 percent by 2015. In 2011 EagleBurgmann
continued its strategic growth project towards raising market share in
the USA, achieving further growth in sales and market share among
OEMs and raising the company's visibility and reputation in its target
markets. Spring 2011 saw work commence on the construction of a
further company building in Houston, aimed at enhancing processes
and workflows and being even better able to meet the requirements
made by the company's regional and global customers on products and
services.
That said, there was also investment in the company's operations in
Germany as well. "The EagleBurgmann project with an investment
volume of over EUR 40 million for the construction of a new production
hall with an overall floor area of 15,600 m2 is due for completion shortly.
This means that in fall 2012 we can start the step-by-step relocation of
production from Wolfratshausen to Eurasburg", reports Dr. Stefan
Sacré. Work continued on the conversion of the ERP environment into
a homogeneous SAP environment in Germany. The objective is to
optimize the management and core business processes, and the actual
implementation will take place from July 2012 onwards and be
completed on schedule by next year.
Innovation
A new mechanical seal designed for applications on mobile drilling
platforms with retractable positioning drives has proved to be a
highly promising development. These drives can be precisely
aligned to the borehole, whatever the weather conditions, and
EagleBurgmann developed the mechanical seal especially for
sealing them. However, it can be given various diameters for
applications on container ships, dredgers and tankers as well.
What makes this solution special is its resistiveness in seawater
applications, together with its insensitivity to vibrations and
pressure fluctuations. Since spring 2011 the "Deepwater
Champion Exploration" mobile drilling platform equipped with six
retractable positioning drives has been performing initial
exploratory drilling operations off Turkey's Black Sea coast. In the
meantime the business group has placed orders for this new seal
worth several million euros.
Employees
The EagleBurgmann Group's workforce numbered 5,766 worldwide as
at year-end 2011 (previous year: 5,495). Against the background of a
looming shortage of qualified personnel, further investments were made
in measures towards enhancing the company's attractiveness as
employer. Particular emphasis continues to be placed on training, in
both the industrial as well as commercial areas of activity.
Social responsibility
Taking on social responsibility is a key element of corporate policy at
EagleBurgmann. For many years already, the company has pursued
and lived by the mission of operating sustainably and responsibly in
terms of social commitment, the workforce and diverse HSE protection
measures whilst ensuring and maintaining business success at the
same time. A sustainability declaration embracing corresponding
guidelines, concrete objectives and key performance indicators was
adopted in 2011.
Outlook
The EagleBurgmann Group anticipates continued growth in 2012
as well, though at lower rates. Given the economic situation, not
only in the eurozone but also in other economies, the Group will
rigorously follow the cost and liquidity management policy already
established and successfully implemented in the years previously,
with the objective of being able to respond quickly to changing
business and market conditions.
EagleBurgmann - Rely on Excellence: EagleBurgmann is among the
internationally leading providers of industrial sealing technology. Its
products are used in applications wherever safety, efficiency and
reliability are essential considerations: for example in the oil & gas,
refinery, chemical, energy, food processing, paper, water, marine,
aerospace and mining industries. With their ideas, solutions and
commitment, around 6,000 employees at over 70 subsidiaries ensure
every day that customers throughout the world can rely on
EagleBurgmann seals. The modular TotalSealCare® service reinforces
the corporate group's commitment to its customers and offers tailored
solutions for any situation.
