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Preh is Growing Worldwide Investing Heavily in the Technology of the Future

Date:2017-05-12 Author:Preh Source:Preh

(2017/05/12) Bad Neustadt a. D. Saale. Preh GmbH can look back on a very successful business year in 2016 as it continues to invest heavily in the future, especially at its headquarters in Bad Neustadt. As a result of organic growth of 14%, as well as the acquisition of TechniSat Automotive (now Preh Car Connect), the Preh Group increased its turnover from EUR 763 million in 2015 to around EUR 1.18 billion  and  gained promotion to the major league of companies generating sales of at least one billion. The automotive supplier has yet again succeeded in further increasing its earning power despite high levels of investment. At EUR 80.6 million, Preh GmbH's operating profit before interest  and  taxes (EBIT), but excluding Preh Car Connect, was approximately 16% above the previous year's figure of EUR 69.6 million. This positive business development was accompanied by a further expansion of Preh's global workforce. At the end of the 2016 financial year, the Group's total number of employees had risen to around 6,620, an increase of 35% on the 4,900 employees in 2015. Personnel still increased by 12% even after excluding Preh Car Connect, which was acquired in 2016. This upward trend also applies to the Bad Neustadt headquarters,135 new jobs were created, increasing the number of employees there by around 8.3% to 1,771 at the end of 2016, up from 1,636 at the end of 2015. Preh's management also expects the growth trajectory to continue in 2017, despite last year's strong performance. In the first quarter of 2017, Preh once again exceeded the previous year's turnover  and  again expects double-digit growth for the year as a whole, including Preh Car Connect GmbH.

At the presentation of the balance sheet figures, Christoph Hummel, the President  and  CEO of Preh, said: "At Preh, 2016 was characterized by strong organic growth, as well as by the pioneering acquisition of Preh Car Connect. We have carried this momentum into the current fiscal year  and  can now offer our automotive customers a significantly extended range of products which, in addition to driver control systems  and  electronic control units for battery management in electric vehicles, now also includes connectivity  and  telematics solutions. This opens up totally new opportunities for growth. At the same time, in 2016 we also completed a very successful fiscal year in the Automation segment  andwith the acquisition of M&R Automation which has now been announced, we created the basis for a completely independent positioning of Preh IMA Automation. In 2017, both automotive supply  and  the automation business are maintaining their strong growth, so we shall continue to hire highly qualified employees worldwide."

Particularly pleasing is Preh's growth at all its locations in Europe, North America  and  China. The German locations also continue to benefit greatly from the market successes of the Preh Group in the business areas automotive electronics  and  automation. Preh is therefore continuing to invest heavily – with the support of its Chinese shareholder Joyson – in the expansion of its head office in Bad Neustadt.

EUR 6.5 million investment in new e-mobility laboratory

After the inauguration of Preh's new development center  and  the announcement of the construction from scratch of a new independent location for Preh IMA Automation (PIA), the automotive supplier  and  automation specialist has made its next decision for a future-oriented investment. Preh will invest around EUR 6.5 million in setting up a new e-mobility laboratory for its Electromobility business segment at its headquarters in Bad Neustadt. In the second half of 2017, the laboratory is scheduled to begin working on the quality qualification of products for the e-mobility sector, especially for high-voltage applications. As a result, total investment in the three most recent large-scale Preh Group projects in Bad Neustadt amounts to around EUR 29 million. The Bavarian Ministry of Economic Affairs  and  Media, Energy  and  Technology explicitly welcomes Preh's considerable willingness to invest in the Lower Franconia region  and  holds out the prospect of supporting Preh's future-oriented research  and  development projects.

"As an automotive supplier operating globally in an extremely tough competitive environment, we have to weigh investment decisions very carefully  and  ask ourselves repeatedly which locations demand our focus  and  attention," said Christoph Hummel. "However, especially in research  and  development, we are convinced that Bad Neustadt should continue to drive our innovative strength. We are therefore also very grateful for the support from the Bavarian State Ministry to make the region an even stronger center for the mobility of tomorrow, which in turn will open up opportunities for further jobs in Bad Neustadt."