SCHOTT increases sales and plans record investments

2020-01-27, SCHOTT AG

SCHOTT AG continued on its growth course again in fiscal year 2018/19. The key financial figures developed positively or remained at the solid level of the previous year.

Fiscal year 2018/2019: Sales rise by 5.1% to EUR 2.2 billion
EBIT of EUR 275 million and EUR 206 million in profit for the year
Highest investments in the company’s history planned at EUR 320 million

“We were able to meet our forecasts from last year and continued the positive business development of previous years despite the difficult global economic situation. For this reason, we are satisfied with the past fiscal year,” emphasized Dr. Frank Heinricht, Chairman of the Board of Management, at the Annual Results Press Conference.

The international technology group managed to increase its sales by 5.1% to around EUR 2.2 billion. The operating result (EBIT), which now stands at EUR 275 million, also improved slightly. Consolidated net profit for the year amounted to EUR 206 million. All three segments – Precision Materials, Optical Industries and Home Appliances – contributed to the successful fiscal year. Business with special glass tubing for pharmaceutical packaging and the ampoules, vials, syringes and cartridges produced from it was particularly dynamic. On the other hand, the difficult situation in the automotive industry also had an impact on SCHOTT. The Electronic Packaging division that supplies components to the automotive industry, in particular, suffered from this development. At the same time, future topics such as autonomous driving and electromobility offer new opportunities for special-purpose glasses.

Investments significantly higher, equity remained stable

Investments in property, plant and equipment amounted to EUR 257 million in the fiscal year, an increase of 38% over the previous year. More than half of this amount went to sites in German-speaking countries. Among other projects, the expansion of the Glass-Ceramic Competence Center at the plant in Mainz was completed to meet the high demand for ZERODUR® glass-ceramic. The expansion of the production capacity of an existing plant in India and the construction of a new plant in China were the largest foreign investments.

At the presentation of the annual results, CFO Dr. Jens Schulte pointed out that the equity ratio had remained at a solid level of 32%. “The company is thus in a strong financial position and has sufficient scope to achieve organic growth as well as make acquisitions,” he noted. The number of employees rose to 16,200, 5,800 of whom are based in Germany.

In the area of M&A transactions, the acquisition of the market leader MINIFAB in the past fiscal year expanded the company’s diagnostics business to include polymer solutions: The Australian company specializes in the development and contract manufacturing of microfluidics-based diagnostic products.

Outlook for fiscal year 2019/2020: expansion of capacities, setting of the course towards climate neutrality

After getting off to a good start in the first three months of its new fiscal year, SCHOTT expects sales to increase by between 3% and 6% for the year as a whole. The technology group expects impetus to come, among other areas, from demand for specialty glass for pharmaceutical packaging and ultra-thin glass for the foldable mobile devices of the future.

In fiscal year 2019/2020, SCHOTT plans to invest EUR 320 million, the highest amount in the company’s history. One main focus here will be on capacity expansions in the pharmaceutical packaging business in China and India. In Germany, SCHOTT plans to invest in its pharmaceutical packaging business in Müllheim, among other sites, as well as in its manufacturing capacities for specialty glass in Mainz and Jena.

At the same time, SCHOTT intends to intensify its efforts to protect the environment and the climate. “With a view towards responsible and sustainable further development, we have set ourselves a clear goal: We want to make SCHOTT a climate-neutral company. During this fiscal year, we will set the course for this and consistently take the appropriate measures,” said Dr. Heinricht, Chairman of the Board of Management.

SCHOTT is a leading international technology group in the areas of specialty glass, glass-ceramics and related high-tech materials. With over 130 years of experience, the company is an innovative partner to many industries, including the home appliance, pharma, electronics, optics, life sciences, automotive and aviation industries. SCHOTT has a global presence with production sites and sales offices in 34 countries. In fiscal year 2018/2019, the Group generated sales of EUR 2.2 billion with its 16,200 employees. SCHOTT AG has its headquarters in Mainz (Germany) and is solely owned by the Carl Zeiss Foundation. This is one of the oldest private and largest science-promoting foundations in Germany. As a foundation company, SCHOTT assumes special responsibility for its employees, society and the environment.