Fiscal year 2016/17

Wieland posts record results and expects further profitable growth

In the fiscal year 2016/17 (1 October 2016 to 30 September 2017), the Wieland Group’s sales volume rose by 5 percent year-over-year to 485,000 tons. The main growth drivers were the sales markets in Europe and China. Due to strong market demand and a copper price level, total sales increased by 18 percent to 3.0 billion Euro (previous year: 2.5 billion Euro). The operating profit (EBITDA) reached a record level of 190 million Euro, an increase of 16 percent versus the previous year (164 million Euro). The improvement was driven by a higher value-added product mix, increased sales volume as well as operational efficiency gains. The development of foreign currencies, in particular the declining USD, impacted results negatively.

Market development
In fiscal year 2016/17, the recovery of the global economy continued. The demand for Wieland Group products grew substantially, driven by trends such as digitization, Internet of Things, mobility and urbanization. The high demand for Wieland products resulted in particular from the strong automotive business, from electronic applications in all sectors and from mechanical engineering. Higher value-added products, system components and components for applications in automotive and vehicle engineering also contributed to sales growth. The push to reduce fuel consumption and emissions was an important driver. Miniaturization and enhanced energy efficiency support the demand for high-performance alloys.

The Eurozone recorded a broad economic recovery, growth momentum has picked up again in Asia and recovery also continues for the US economy.

Rising metal prices
The average copper price reached 5,250 Euro per ton and was thus 22 percent up versus prior year. With an average of 2,460 Euro per ton, the zinc price was 46 percent higher than previous year.

Capital expenditures
In fiscal year 2016/17, the Wieland Group invested a total of 70 million Euro in fixed assets (prior year: 70 million Euro). The investments focused on the German locations Ulm and Vöhringen as well as on B. Mason & Sons, UK, and Buntmetall Amstetten, Austria.

Employees
In fiscal year 2016/17, an average of 6,965 employees (prior year: 6,998) were working for the Wieland Group.

Dividends
At the annual general meeting of Wieland-Werke AG on 23 March 2018, a dividend in the amount of 15,5 million euros was declared (prior year: 15.5 million euros).

Current fiscal year
The high demand seen in 2016/17 is continuing in the current fiscal year. Wieland´s business outlook remains positive due to continued strong global demand for Wieland Group products and services. The acquisitions in the USA, Wolverine Tube, Inc. as well as Kessler Sales & Distribution, will also contribute positively to the Group results.