Liebherr’s strong results hit record high

718 Liebherr has achieved a record turnover of €10.55 billion for 2018. This broke through the €10 billion barrier for the first time in the company’s history and represents an increase of €739 million, or 7.5 %, compared with the previous year’s turnover.

This came despite a slight decline in overall economic growth. Both the construction machinery and mining equipment divisions recorded overall increases in sales revenues, as did the other product areas overall.

Revenues from construction machinery and mining equipment rose by 10.8 % to €6.83 billion, with especially strong contributions from the Earthmoving, Mobile Cranes and Mining divisions.

Record sales generated in 2018 can be attributed to the very favourable economic conditions and higher demand in several sales regions. Sales continued to increase within the 1116 European Union, which is Liebherr’s most important sales region. This can be attributed, among other things, to renewed growth in Germany, which is Liebherr’s largest market, and to the positive economic situation in France and Great Britain. In the non-EU countries sales revenues fell compared to the previous year, mainly due to the development of the currency exchange rate in Russia. The business also performed very positively in North America, Central and South America, and Asia and Oceania, driven in particular by the markets in the USA, Australia and China.

The Liebherr Group achieved a net profit of €321 million in 2018, slightly above the previous year’s level. The operating result remained stable compared to the previous year. The financial result declined, mainly due to negative effects of currency movements.

The 2018 business year saw a significant increase in the workforce. At the end of the year, the Liebherr Group had a total of 46,169 employees worldwide. Compared to the previous year, this constituted an increase of 2,300.

Liebherr invested €586 million in research and development last year. The bulk of this was used in the development of new products. A large number of joint research projects with universities, other higher education institutions and research institutes were initiated and continued. A special area of focus for this research project is the construction site of the future. For example, Liebherr started a development partnership with the RWTH Aachen within the framework of the Center Construction Robotics and is also involved in the "Construction 4.0" joint project initiated by the German Mechanical Engineering Industry Association (1331 VDMA).

Important issues across the wide range of products and services include, as they have done for many years, increasing energy efficiency, networking, automation and lightweight product design. The Group is also forging ahead with e mobility initiatives, developing charging cable cooling units for charging stations and carrying out research into an electric turbo compressor for fuelcell-powered vehicles.

Strong investments were made also in production, sales and service and €829 million was invested in the production sites and the global sales and service network. This means the Liebherr Group increased its investment activities by €51 million compared to the previous year. The Group has invested in Bad Schussenried (Germany) which will serve as a new manufacturing site for concrete pumps. New production lines for large engines are being set up in Bulle (Switzerland) and Colmar (France).

Outside Europe, Liebherr is investing in projects such as the development of the Newport News site (USA). The expansion of the crane, construction machinery and concrete technology divisions is intended to support the Group’s long-term growth strategy in the US market.

The Liebherr Group expects further growth in 2019 as according to the latest projections, global economic growth is expected to continue to slow during the current year. However, there are no signs of an imminent recession.