In the 165th year of its history, Freudenberg, the internationally active family company, was more successful than ever before. In the 2013 financial year, the technology group reported record sales for the fourth year in succession, on the previous consolidation basis at €6,622.5 million (previous year: €6,321.7 million).
Adjusted for the effects of acquisitions and disinvestments to the amount of €148.1 million and exchange rate effects, sales were 5.4 percent or €338.9 million higher than the previous year. Consolidated profit ran at €401.5 million, based on a significant improvement in business operations, compared with the figure for the previous year (€432.7 million), which included one-off extraordinary items. As at December 31, 2013, the Freudenberg Group employed 39,897 people (previous year: 37,453 people).
“Freudenberg is now more innovative and more successful than ever before,” said Dr. Mohsen Sohi, Speaker of the Board of Management of the Freudenberg Group, at the annual press conference held in Weinheim on Wednesday. “Despite a challenging economic environment and negative exchange rate effects, we have grown profitably and sustainably. Sales increased in almost all Business Areas.”
The development figures are based on the pro-rata consolidation method previously used as Freudenberg continues to use this method for the management of its operating activities, including the activities of the 50:50 joint ventures.
In its external financial reporting, the Freudenberg Group applied the new financial reporting standards IFRS 10, 11 and 12 for the first time. This means that the “non-controlled” 50:50 joint ventures – i.e. the joint ventures over which Freudenberg does not exercise industrial control – are no longer included in the consolidated financial statements as 50 percent holdings, but are consolidated for the first time by the equity method.
This results in significant changes with regard to sales, total assets, the equity ratio and the number of employees.The NOK-Freudenberg Group China, TrelleborgVibracoustic and Freudenberg NOK Mechatronics (now enmech) Business Groups are consolidated by the equity method. Sales and the number of employees, as well as assets and liabilities, are therefore not taken into consideration in the consolidated financial statements.
