SMS group: Customers remain reluctant to invest in new plants

Order intake by the SMS group in the last business year declined to EUR 3.167 billion, (2013: EUR 3.309 billion). Sales, at EUR 3.406 billion, remained at the same level as the previous year (2013: EUR 3.495 billion).

In business year 2014, the SMS group pre-tax result declined to EUR 31 million (2013: EUR 178 million). The expenses for restructuring the SMS group depressed the result achieved in 2014.

In Business Area SMS Siemag (including Paul Wurth), order intake decreased by EUR 92 million to EUR 1.952 billion (2013: EUR 2.044 billion).

Business Area SMS Meer generated an order intake of EUR 1.050 billion, also hovering below the previous year’s figure (2013: EUR 1.104 billion).

Finally, the elexis group contributed EUR 175 million (2013: EUR 181 million) to the order intake.

This is how order intake broke down according to global regions: Europe (including Russia and Ukraine) 31 percent (2013: 29 percent), Asia 24 percent (2013: 45 percent), North and South America 43 percent (2013: 25 percent), Africa 2 percent (2013: 1 percent).

Due to the lower order intake, the order backlog of EUR 4.613 billion also fell short of the previous year’s value (2013: EUR 4.997 billion).

The year’s average number of employees in the SMS group including apprentices totaled 14,003 (2013: 13,856). Primarily responsible for the increase is the expansion of service business and an increase in manpower abroad. That contrasts with a reduction in staff in Germany.

Despite cost-cutting programs, the SMS group will adhere to its policy of training more than the average number of young talents. This is how the company continues to meet its social responsibilities in this important area. Furthermore, in view of demographic change, the SMS group ensures it will be able to draw on a pool of adequately qualified personnel in the future.

Future uniform global presence under roof brand SMS group

As from August this year, the ranges of metallurgical and rolling mill technology as well as tube & pipe, long products, and forging technology will be united under the single SMS group brand name. The two management companies SMS Siemag AG and SMS Meer GmbH will merge to create SMS group GmbH. In its future positioning, the new company will emerge with a joint Managing Board and ten globally operating divisions. They will receive effective support from internal central departments. Around half of the employees work in Germany, the others abroad, including more than 1,000 each in India and China.


(Source: SMS group)

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