2012-02-06  Business News

BÖWE SYSTEC about to take the biggest innovative leap in its history

Innovations that represent a revolutionary new approach to inserting are set to be presented by BÖWE SYSTEC at drupa 2012. This innovative leap has been made possible by the long-term growth strategy of BÖWE SYSTEC’s parent company. The Possehl Group, to which BÖWE SYSTEC GmbH has belonged since 2010, has once again significantly exceeded its sales target in fiscal year 2011, increasing its operating profit by 70% compared with the previous year. 

“The international innovations that we will be unveiling to our customers at drupa 2012 mark the biggest innovative leap in BÖWE SYSTEC’s 67-year history,” stressed Heiner Kudrus, CEO of BÖWE SYSTEC GmbH. “Possehl is the ideal partner with which to pursue long-term growth targets that initially call for considerable investment in research and development.”
According to preliminary figures, the Lübeck-based conglomerate generated sales of €2.5 billion in the year under review. This corresponds to growth of over 45% compared with the previous year. New acquisitions, including BÖWE SYSTEC, accounted for almost half of the increase in sales. In recent years, Possehl has proved on many occasions that it is capable of turning around companies which have been in financial difficulties and managing them successfully in the long term. The most recent example of this successful strategy is BÖWE SYSTEC, the Augsburg-based inserting systems manufacturer. Following the takeover by Possehl at the end of 2010 and the company’s realignment in line with mid-market principles, BÖWE SYSTEC was back in the black just a year after filing for bankruptcy. Positive developments at almost all divisions of the Possehl Group contributed to the rise in sales. The highest growth rates were recorded in the Group’s machine building activities and its precious metal dealings. The construction segment also proved highly successful.

Operating profit reaches new high

Possehl’s consolidated pre-tax operating profit rose by a good 70% compared with the previous year, when the Group posted its previous all-time high. The latest figure is expected to come in between €135 and €145 million. All nine divisions at the Group were also profitable in the year under review. Consolidated net profit was boosted by one-off income from the sale of a block of stock in elexis AG, Wenden. “We are very happy with the earnings figure. It proves that our corporate strategy of sustainable, profitable growth is paying off,” said Uwe Lüders, Chairman of the Executive Board of L. Possehl & Co. mbH.

The Possehl Group can still boast very sound financing. Its net cash position remains positive at the end of the fiscal year with virtually no change compared with the previous year. This means the Possehl Group is still debt-free on a net basis, despite its strong growth. The company acquisitions completed in the year under review were funded entirely using the Group’s own resources. “We want to continue acquiring companies without incurring bank debt in the future. Our aim is to keep growing, but in a very sensible fashion. We will remain true to our principle of doing nothing which we cannot afford or which is too risky,” said Lüders.

Back to News overview