2014 Balance Sheet: TÜV Rheinland Generates Strong Growth Worldwide
Revenue increases to more than €1.73 billion / EBIT stable at €110 million / Investments doubled / 700 new jobs created, headcount rises to more than 19,300 / Strategic acquisitions in the USA, Great Britain, and India
(pressebox) Köln, 26.03.2015 - TÜV Rheinland continues to generate global growth: TÜV Rheinland's revenues rose in 2014 to €1.731 billion. This is a sharp year-on-year increase of 8.2% (10%, adjusted for exchange rates). EBIT remained essentially stable at €110.2 million. This means that the profit margin dropped from 7.3% in 2013 to 6.4% in 2014. The decline is due to the sluggish economic climate in Brazil and China and the continued challenges in many European markets. Moreover, the competition is fierce for some part of product testing and the solar industry - two critical business segments for TÜV Rheinland.
Dr. Michael Fübi, CEO of TÜV Rheinland AG noted: "Last year, we significantly increased revenues, thereby maintaining our position as a leading testing company among the global competition. At the same time, we found that given the tough competition and some difficult market conditions, we did not meet all of the profitability targets we had set. We can improve and, going forward, we can concentrate on the right balance between revenue and profit - with a focus on growth that yields. "
Revenue in Germany rose by 7.5% to €888 million; outside Germany, it grew by 8.8% to €843 million. All in all, the company generated 48.7% of consolidated revenue outside Germany. The Asian markets, including India, the Middle East and Africa, accounted for the lion's share of foreign business. The Greater China region remains the most important foreign presence, with about 3,300 employees.
The IMEA (India, Middle East, Africa) region recorded extremely dynamic growth in 2014. Revenue rose by more than one-third. Currently, 1,400 people work in this region for TÜV Rheinland.
New jobs created
On average, TÜV Rheinland employed 19,320 people in 2014, which is exactly 1,373 more than in 2013. This represents growth of 7.7%. Half of this was organic growth; last year, nearly 700 additional jobs were created at TÜV Rheinland.
In Germany, the headcount rose by 6.1% or 446 to 7,774 employees; outside Germany, it grew by 8.7% to 11,546. Six out of ten people working for TÜV Rheinland work outside Germany.
Investments doubled - strategic acquisitions
Investments grew by leaps and bounds, nearly doubling to €150 million. Apart from the acquisitions, investments focused on three areas: Slightly more than €20 million has already been spent on the new power center and a new building for more than 500 employees at the TÜV Rheinland Business Park in Cologne.
Investments also focused on the expansion and creation of new testing capacities and labs - especially in Asia - along with testing centers for vehicles in Germany, especially Chile and elsewhere. One fixture of TÜV Rheinland's future development program is investments in IT infrastructures, telecommunications and software. Worldwide, TÜV Rheinland spent about €19 million on this in 2014.
TÜV Rheinland invested a total of about €60 million in various smaller and three major acquisitions. This includes UK's Risktec Solutions, which offers safety analyses and technical training services. TÜV Rheinland also acquired training company NIFE in India, which offers education and further training at about 70 training centers.
The third strategic acquisition was OpenSky in the U.S., which specializes in IT, network and computer systems security. Apart from its offices in the U.S., it also has a branch in London.
2015 Outlook
TÜV Rheinland is confident that its work provides quality of life, as its experts help make technology safer and benefit people and the environment. Furthermore, the employees of TÜV Rheinland know the responsibility they bear in this regard -- whether they are performing regular inspection services for an elevator or a merry-go-round, toys or a power plant, or informing people of the employees' activities.
Dr. Michael Fübi explains: "We have three strategic areas of focus this year. First, to enhance operational excellence at TÜV Rheinland and increasing yield. This means the quality of our processes and methods as well as focusing our portfolio. This leads to our second focal area - increasing profits, and there is room for improvement. This year and beyond we will place our emphasis on global growth and increasing profits. In other words, we aim at profitable growth. A third area is to successfully anchor concepts for the future, and thus, identify innovations that the market needs and expects from us. We feel that 2015 is a year of transformation. This transformation applies to what we do and how we do it in order to meet our own standards. We want to be the world's best sustainable and independent technical provider of technical services for testing, certification, consultancy and training."
Dr. Michael Fübi, CEO of TÜV Rheinland AG noted: "Last year, we significantly increased revenues, thereby maintaining our position as a leading testing company among the global competition. At the same time, we found that given the tough competition and some difficult market conditions, we did not meet all of the profitability targets we had set. We can improve and, going forward, we can concentrate on the right balance between revenue and profit - with a focus on growth that yields. "
Revenue in Germany rose by 7.5% to €888 million; outside Germany, it grew by 8.8% to €843 million. All in all, the company generated 48.7% of consolidated revenue outside Germany. The Asian markets, including India, the Middle East and Africa, accounted for the lion's share of foreign business. The Greater China region remains the most important foreign presence, with about 3,300 employees.
The IMEA (India, Middle East, Africa) region recorded extremely dynamic growth in 2014. Revenue rose by more than one-third. Currently, 1,400 people work in this region for TÜV Rheinland.
New jobs created
On average, TÜV Rheinland employed 19,320 people in 2014, which is exactly 1,373 more than in 2013. This represents growth of 7.7%. Half of this was organic growth; last year, nearly 700 additional jobs were created at TÜV Rheinland.
In Germany, the headcount rose by 6.1% or 446 to 7,774 employees; outside Germany, it grew by 8.7% to 11,546. Six out of ten people working for TÜV Rheinland work outside Germany.
Investments doubled - strategic acquisitions
Investments grew by leaps and bounds, nearly doubling to €150 million. Apart from the acquisitions, investments focused on three areas: Slightly more than €20 million has already been spent on the new power center and a new building for more than 500 employees at the TÜV Rheinland Business Park in Cologne.
Investments also focused on the expansion and creation of new testing capacities and labs - especially in Asia - along with testing centers for vehicles in Germany, especially Chile and elsewhere. One fixture of TÜV Rheinland's future development program is investments in IT infrastructures, telecommunications and software. Worldwide, TÜV Rheinland spent about €19 million on this in 2014.
TÜV Rheinland invested a total of about €60 million in various smaller and three major acquisitions. This includes UK's Risktec Solutions, which offers safety analyses and technical training services. TÜV Rheinland also acquired training company NIFE in India, which offers education and further training at about 70 training centers.
The third strategic acquisition was OpenSky in the U.S., which specializes in IT, network and computer systems security. Apart from its offices in the U.S., it also has a branch in London.
2015 Outlook
TÜV Rheinland is confident that its work provides quality of life, as its experts help make technology safer and benefit people and the environment. Furthermore, the employees of TÜV Rheinland know the responsibility they bear in this regard -- whether they are performing regular inspection services for an elevator or a merry-go-round, toys or a power plant, or informing people of the employees' activities.
Dr. Michael Fübi explains: "We have three strategic areas of focus this year. First, to enhance operational excellence at TÜV Rheinland and increasing yield. This means the quality of our processes and methods as well as focusing our portfolio. This leads to our second focal area - increasing profits, and there is room for improvement. This year and beyond we will place our emphasis on global growth and increasing profits. In other words, we aim at profitable growth. A third area is to successfully anchor concepts for the future, and thus, identify innovations that the market needs and expects from us. We feel that 2015 is a year of transformation. This transformation applies to what we do and how we do it in order to meet our own standards. We want to be the world's best sustainable and independent technical provider of technical services for testing, certification, consultancy and training."
