Group enjoys global growth, increases profit and creates scores of new jobs
Endress+Hauser increased sales and profit in 2017. The Group benefited from a strong business environment and introduced a wide range of product innovations, including the first digital services offering. Numerous new hires, substantial investments and great strides in the area of sustainability underscore the Group’s balanced growth.
Strong development on a local currency basis
In 2017 net sales rose 4.8 percent to 2.241 billion euros. The appreciation of the euro against most other currencies distorts the picture, however. “When adjusted for local currencies, we grew at a 6.5 percent rate; the instrumentation business enjoyed 8.0 percent growth,” said CEO Matthias Altendorf during the Group’s annual media conference in Basel. “We are confident that Endress+Hauser has strengthened its market position.”
A strong consumer business environment, stabilizing oil prices and low interest rates in 2017 led to greater investment activity in the process industry. “Apart from having to expand capacity, companies were looking for ways to produce more competitively, reliably and sustainably,” said Matthias Altendorf. Endress+Hauser supports their endeavors as a leading global provider of process and laboratory measurement technology, automation solutions and services.
Impetus from innovation and digitalization
“The business performed well across practically all regions and industries,” reported the CEO. Innovative technologies gave significant impetus to business. Endress+Hauser launched 57 new products and 571 instrument options last year. Expenditure on research and development rose to 170.7 million euros, which equates to 7.6 percent of sales. The significance of innovation at Endress+Hauser is reflected in 261 new patent applications. Digitalization is playing an increasingly important role.
Improvement on the earnings side
Endress+Hauser improved operating profit (EBIT) by 15.0 percent to 251.7 million euros. Profit before taxes (EBT) rose 24.9 percent to 275.6 million euros. Net income grew by 34.2 percent to 209.1 million euros. Return on sales (ROS) climbed 2.0 points to 12.3 percent. In contrast, the equity ratio sank 0.3 points to 70.2 percent due to exchange rate effects. Endress+Hauser invested 138.7 million euros worldwide.
Excellent score in sustainability
“As a family company it’s our aim to grow sustainably,” emphasized CEO Matthias Altendorf. One of the strategic key performance indicators in this respect is the EcoVadis benchmark, which rates supplier sustainability. In 2017 Endress+Hauser scored 66 out of 100 points to place in the top two percent of all companies that were evaluated. Endress+Hauser created 296 new jobs in 2017, significantly more than planned. At year end, 13,299 people worked for the Group.
Solid outlook for the current year
Endress+Hauser is off to a good start this year with a strong increase in incoming orders. The Group is planning growth in the mid-single-digit range and anticipates profitability remaining at the current level without extraordinary effects. 223 million euros have been set aside for investments and the Group plans to create up to 500 new jobs worldwide. “We expect 2018 to be another good year for Endress+Hauser,” said Matthias Altendorf.
Endress+Hauser accompanies customers on the path to digitalization
The Industrial Internet of Things (IIoT) has huge potential: predictive maintenance, asset information management and device configuration are just some examples of the opportunities digitalization has in store for companies. Endress+Hauser is driving IIoT forward through innovative products and solutions as well as by working with partners. This dedication has been proven twice – winning the Digital Champion Award and presenting a new digital platform at the German Digital Summit.
The advantages of digitalization in the process industry can already be seen clearly. Increased networking opens up new opportunities in process optimization and increases plant efficiency. Endress+Hauser is therefore constantly increasing its offer of products, solutions and services in order to increase customers’ productivity and system availability while expanding competitiveness.
Digital Champion 2017
With Memosens, Endress+Hauser introduced a pioneering sensor technology for liquid analysis in various industries such as chemical, power & energy, food & beverage and water & wastewater over 10 years ago. Memosens sensors measure the pH-value in liquids, for example, and transform it into a digital signal while still in the sensor. The data is then passed on via a contactless system and provides extremely accurate, reproducible and reliable measurement results.
Furthermore, the technology combines high process and data security with simple handling: it can withstand corrosion and moisture, can be calibrated in the laboratory and enables predictive maintenance.
Memosens was presented with the Digital Champion Award in the category Digital Products and Services in June 2017. The award is a joint initiative of the German telecommunications provider Telekom and the business magazine WirtschaftsWoche, which was set up in 2016 with the aim of awarding prizes to significant projects by medium-sized companies.
Endress+Hauser at the Digital Summit
Endress+Hauser also demonstrates its commitment through its work with partners: the company created a platform through which data can be exchanged together with BASF, SAP, Pepperl+Fuchs and SAMSON. This was presented for the first time at the Digital Summit of the German Federal Ministry for Economic Affairs and Technology. The event took place in June 2017 in the metropolitan Rhine-Neckar region and saw over 1000 participants, including the German Chancellor Dr. Angela Merkel.
The platform enables new forms of data-based cooperation. The effectiveness and efficiency in chemical production can be increased significantly, allowing new business models to be created. The ability to gather data on the condition of devices and components and exchanging this data with all those involved with the process helps determine maintenance requirements, plan maintenance work more efficiently and reduce plant shutdowns.
Subsidiary for IIoT activities
Endress+Hauser has combined its activities for IIoT in a subsidiary in Freiburg, Germany, in order to meet the high pressures of digitalization. Here, specialists work exclusively on products, solutions and services for digitalized plants. These include customized cloud solutions, for example, which utilize specific data from production processes and increase efficiency, as well as services for the plant’s entire life cycle.
Cover Story: While the oil and gas sector is still male-dominated, engineering-minded associations are working to motivate more women to work in the field.
While technology and engineering constantly evolve, the gender balance is an issue that still needs to be addressed by those who work in the sector. Throughout history, the engineering industry has traditionally underplayed its female workforce. For example, how many people could name the famous male machinist and engineer who industrialized car production in 1920s America (Henry Ford), compared to the female engineer—and movie star—behind a remote-controlled communications system for the U.S military during World War II which now serves as a basis for Bluetooth and Wi-Fi network connections (Hedy Lamarr).
The 30th annual Control Engineering Engineers’ Choice Awards shines a light on 28 categories of control, instrumentation, and automation products, revealing the best of those introduced in 2016 as chosen by you, Control Engineering’s print and digital audience. Review the winners and honorable mentions here to see if their innovative solutions can help you solve one of your most pressing problems.
Also, join us in congratulating these technological innovators. Let them know you learned about their solutions in Control Engineering, and tell them what problems you need solutions for next. Their continuous improvement ensures that manufacturers, machine builders, and automation system integrators can achieve the levels of agility, efficiency, and effectiveness necessary to compete—and win—in today’s global economy.
More than 100 finalists from 63 companies were listed on ballots for evaluation. Automation professionals from Control Engineering’s subscriber lists—all of whom are responsible for or influence technology purchases, or have hands-on day-to-day interaction with the technologies in each category—then voted to identify the products they felt were the most exceptional based on technological advancement, service to the industry, and market impact. The result is a short list of Engineers’ Choice Awards winners and honorable mentions in 28 categories. A total of 1 grand winner, 28 winners, and 28 honorable mentions were named for 2017.
Industrie 4.0 combines production methods with state-of-the-art information and communication technology. The driving force behind this development is the rapidly increasing digitisation of the economy and society. It is changing the future of manufacturing and work in Germany: In the tradition of the steam engine, the production line, electronics and IT, smart factories are now determining the fourth industrial revolution.
The technological foundation is provided by intelligent, digitally networked systems that will make largely self-managing production processes possible: In the world of Industrie 4.0, people, machines, equipment, logistics systems and products communicate and cooperate with each other directly. Production and logistics processes are integrated intelligently across company boundaries to make manufacturing more efficient and flexible.
This facilitates smart value-creation chains which include all of the lifecycle phases of the product – from the initial product idea and development, production, use and maintenance through to recycling. In this way, customer wishes for everything from the product idea through to recycling can be taken into account, as well as the related services. This enables companies to produce products that are customised according to individual customer requirements more easily than before. The individual production and maintenance of products could become the new norm.
Radar has become the preferred technology for level measurement in many of today’s industrial applications since it has been continually developed and improved over the past 40 years.
For noncontacting radar instruments, selecting the microwave frequency transmitted by the device is an area in which some interesting recent developments have taken place. Noncontacting radar instruments using high-frequency (75 to 85 gigahertz [GHz]) technology have been introduced, complementing the low - (6 to 11 GHz) and mid-frequency (24 to 29 GHz) devices already extensively deployed to provide accurate and reliable level measurements.
Offering a wider selection of devices to end users is beneficial, but it is crucial to select a radar instrument that uses the most appropriate frequency band for each application. The different frequency bands are not equally suited to every application, so the strengths and weaknesses of each must be carefully considered in light of how various process conditions can affect performance.
This Standard Technical Specification was developed by Hunter Water Corporation to be used for the design, construction/installation and/or maintenance of facilities that are, or are to become, the property of Hunter Water Corporation.
It is intended that this Standard Technical Specification be used in conjunction with various other standard and project specific drawings and design requirements as defined by Hunter Water Corporation for each particular project.
Hunter Water Corporation does not consider this Standard Technical Specification suitable for use for any other purpose or in any other manner. Use of this Standard Technical Specification for any other purpose or in any other manner is wholly at the user's risk.
Hunter Water Corporation makes no representations or warranty that this Standard Technical Specification has been prepared with reasonable care and does not assume a duty of care to any person using this document for any purpose other than stated.