Engel defies the crisis
The ongoing recession continues to hit the industry heavily. Despite this, Engel again succeeded in expanding its market share considerably in the past financial year. On top of this, due to an extremely positive first sixth months in 2008/09, a turnover of some 591 million Euros was achieved. Targeted measures, geared to facilitate investments by customers, will continue to reinforce Engel's position on the market.
In addition to this, Engel achieved a turnover of around 591 million Euros in the past financial year, 2008/09. Considerable growth in turnover by 25% in the first six months of the financial year, almost fully compensated for the drop in the second half of the year. For comparison: in the financial year 2007/08, our turnover worldwide was 622 milion Euros.
However, the difficult economic situation worldwide is also starting to hit ENGEL. The company has responded to the ongoing slack level of incoming orders by introducing numerous measures such as short-time work, suspension contracts and sabbaticals. Despite this, further adjustment of staff capacity is unfortunately necessary and inevitable.
To be able to continue to offer our customers long-term success in the future, Engel has further expanded the global coverage of our sales and service network. For example, we opened our new Technical Centre in Corona/California in March 2009. Mould trials and customer trainings can be held at the centre. The centre has a stock of spare parts and will help to support injection moulders in the west of the US region.
Despite the extremely difficult market situation in eastern Europe, the market position of our two latest eastern European sales operations, Engel Russia and Engel Rumania has improved substantially. By now, Engel Russia has secured market leadership of the relevant markets in Russia, the Ukraine and Belarus. On the expanding Rumanian market, which is still mainly driven by growth in the automobile industry, Engel Rumania has succeeded in substantially strengthening its market position since it was founded in October 2007.
In this difficult market environment, Engel offers three plans that facilitate customer investments. Besides its portfolio of global leasing models and financing via Engel as a principal bank, Engel is offering a scrap bonus in the amount of 3010 Euros until the summer of 2009 to customers who purchase a new Engel machine.
Additionally, in celebration of the 20th anniversary of the tie-bar-less injection moulding machine and the 50,000th Engel victory machine sold, Engel is offering an action package that targetedly provides customers with an injection moulding machine that uses standard options to achieve an extremely attractive cost-performance ratio. The new Engel victory spex gives customers the ability to invest in a machine with 28 to 400 t clamping force in these economically difficult times without tying up large amounts of capital.
As family business geared for long-term stability, Engel thus empowers its customers to invest despite critical economic times, and thus improve the productivity of their own operations.
- Engel's mission statement is and always has been total customer orientation. And this will not change in the future. The current situation is difficult, but manageable. And engel is there for its customers, without any restrictions. Customer proximity and familiarity with specific market requirements form the basis for long-term success - even in times of crisis - says Dr. Peter Neumann, CEO Engel Holding GmbH.