Higher Operating Profit at CWS-boco, ELG and TAKKT
In addition to the continuation of the strategic initiatives in the divisions, the economic outlook in 2015 is anticipated to have a positive effect on the Haniel Group’s business development. However, the economic situation will impact the divisions to varying degrees.
At CWS-boco, slight revenue growth adjusted for currency translation effects is expected overall for 2015. In addition to the economic development in Europe, this will primarily be attributable to the expansion of sales operations. While sales activities will already have a positive impact on revenue, they will continue to weigh down earnings in 2015 and not make a positive earnings contribution until subsequent years. It can nevertheless be assumed that CWS-boco will slightly improve upon the previous year’s strong profit in the 2015 financial year. Additional measures to modernise the international laundry network and systematically optimise operating processes will contribute to that increase.
The ELG division expects to benefit primarily from increasing stainless steel production in the US in 2015. For this reason ELG expects an increase in output tonnage in the single-digit percentage range. For the superalloys business in 2015, ELG expects continuing strong demand, in particular from the aviation industry. For nickel, an important commodity for the business, ELG is also planning on higher prices compared to 2014, in which nickel prices averaged USD 16,900 per tonne. Based on these assumptions, ELG anticipates revenue growth in the single-digit percentage range for 2015. As a consequence, ELG assumes operating profit will improve noticeably. As development on the commodity markets is very volatile, ELG’s revenue and operating profit may also deviate significantly from this forecast, however.
TAKKT is also anticipated to benefit from an improved economic climate, particularly in the US, but also in Europe. The discontinuation of the Topdeq business in 2014 as well as the disposal of the Plant Equipment Group at the beginning of 2015 will have a negative impact on revenue. Adjusted for business combinations and disposals as well as currency translation effects, TAKKT expects a slight increase in revenue. Operating profit is expected to increase moderately. TAKKT will continue to consistently pursue its growth initiatives in 2015. The DYNAMIC initiative better coordinates the various sales and marketing channels, thus further optimising the sales approach. Furthermore, TAKKT intends to generate growth in its business with existing and new customers through new products and services.
For the METRO GROUP, revenue adjusted for business combinations and disposals as well as currency translation effects is expected to increase slightly. This growth will continue to be driven by expansion of the international network of stores as well as by the continuing expansion of multi-channel sales. The METRO GROUP will continue its strong focus on efficient structures and strict cost control. A slight increase in operating profit before one-off expenses and adjusted for currency translation effects is therefore expected for 2015. However, the METRO GROUP also anticipates one-off expenses in 2015, albeit to a lesser extent than in 2014. Based on this assumption and considering the current changes in foreign exchange rates for the Russian rouble, Haniel expects its investment result from the METRO GROUP to be at the previous year’s level.