BSH: preliminary figures for the 2014 fiscal year

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BSH_Zentrale_1_03According to the preliminary figures released by the company, BSH was able to increase its revenue by 8.4 percent to around €11.4 billion in fiscal 2014. Adjusted for exchange rate effects, revenue grew by 11.1 percent. Earnings before interest and taxes (EBIT) rose sharply to around €700 million. Compared with the previous year’s figure, which was reduced by non-recurring effects, the EBIT margin improved by more than one percentage point to around six percent. “One of the growth drivers in the past year was business in Europe – the company explains in a official note -. In a largely saturated market, BSH was able to expand its market leadership further, increasing its revenue to €6.9 billion despite the fact that the market continues to trend weakly”. In North America, BSH benefited from high demand for premium products and dynamic economic development and posted annual revenue of €700 million.
In the Turkey, Middle East, Africa & CIS region, revenue was €1.6 billion, below the level of the previous year. “The group’s business performance – explains the company – was impacted among other things by the sharp depreciation in the ruble and very restrained economic growth in Turkey”. Besides, BSH achieved slight growth in the Asia/Pacific region, generating revenue of €300 million. Its positive performance in India, where BSH opened a factory for washing machines last year, also contributed to that. In the Greater China region, revenue likewise saw an above average increase to €1.9 billion. Additional investments in the Chinese locations are intended to enable manufacture of further region-specific products.
Ar regards to the investments, in 2014 BSH invested €373 million in research and development or 3.3 percent of revenue, an increase of 11.7 percent over 2013. Total investments in property, plant and equipment were €443 million. Besides, investments included a new technology center for dishwashers at the Dillingen location. Approximately €100 million went toward modernizing the production lines for a new oven series at the Bretten and Traunreut production sites. BSH intends to spend around €450 million on R&D this year.