Very dynamic global demand for sensors and application solutions from SICK

In addition to our presence in established markets, sales activities in the world's growth regions also contributed to a further increase in turnover. In the home market of Germany, sales grew by 1.3% compared to the previous year. In general, the flattening economic trend in the domestic market slowed SICK's growth momentum in Germany. Customers from the automotive and intra- and transport logistics sectors in particular were reluctant to invest in the 2018 fiscal year.

The Europe, Middle East and Africa (EMEA) sales region achieved sales growth of 8.5%. Particularly strong growth momentum came from all Scandinavian countries in the 2018 financial year. Outstanding and sustainable growth was achieved here, particularly in transport logistics and process automation, e.g. in the area of ship emission measurements. In the south-western European countries, growth was in line with expectations. Here, customers from the oil and gas industry were cautious in their demand, particularly in the area of process automation. In Turkey, pleasing growth was achieved in euros despite the high fluctuations in the value of the Turkish lira.

Sales growth in North, Central and South America (Americas) amounted to 10.1%. The main driver of this growth was increased customer demand from the USA. The particularly successful business with US customers from intra- and transport logistics and the oil and gas industry continued. However, the very pleasing growth in the region was impacted by exchange rate effects.

Growth in the Asia-Pacific region was once again very dynamic. With an increase of 12.9%, sales growth remained in double digits in 2018. In China, the business volume once again increased significantly - thanks to customers from all sectors. Sales also increased significantly in Japan, Singapore and Taiwan. In the Asia-Pacific region as a whole, exchange rate effects had a negative impact on the positive sales trend, primarily due to the weaker Chinese renminbi compared to the euro.

Profitability enables investments in the future

Earnings before interest and taxes (EBIT) fell in the 2018 financial year. The resulting development primarily reflects the planned increases in structural expenses to secure the company's future. The extraordinary measures to ensure delivery capability in the face of extreme bottlenecks on the procurement markets were also significant. In total, earnings before interest and taxes (EBIT) amounted to EUR 117.5 million (2017: EUR 148.8 million).

As in previous years, SICK invested heavily in R&D activities in the 2018 fiscal year. Overall, the SICK Group expanded its R&D activities in the 2018 fiscal year and spent EUR 192.5 million (2017: EUR 169.4 million) on achieving its R&D goals. Total expenses for start-up initiatives amounted to a low double-digit million figure in 2018. The high R&D expenditure ratio of 11.8 percent (2017: 11.2 percent) of sales illustrates the innovative strength of the SICK Group. The focus of R&D activities remains at the sites in Germany.

Employees: Expertise in R&D, production and global sales and service organization further strengthened

In line with the growth in sales, the number of employees worldwide also increased by 928 in the past fiscal year. At the end of 2018, the SICK Group had a total of 9,737 employees. Compared to the end of 2017 (8,809 employees), the increase amounted to 10.5 percent. This is primarily due to the global increase in the workforce. New employees were hired in the operational production areas in particular, as well as in R&D, sales and service. The increase also includes employees for the start-up initiatives.

The outlook for the 2019 financial year is cautious overall. Global economic growth is currently being constantly revised downwards. The risks for the global economy have increased considerably and are making the forecast more uncertain. However, thanks to its broad industry presence and its innovative product and service portfolio, the SICK Group is in a promising position to continue benefiting from the increasing requirements - particularly in the context of digitalization and Industry 4.0. In particular, the very good order situation for solutions for ship emission measurement and systems for logistics will support the targeted growth in 2019.