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Author: Möbelfertigung

Ended the year 2019 with a decline in turnover

Danzer, a hardwood company specializing in timber from temperate forests in the northern hemisphere, even suffered a double-digit drop in sales of 11 percent in 2019 compared to the previous fiscal year. In total, the Austrians generated annual sales of 180 million euros; in 2018 the figure was 202 million euros. The two main reasons for the decline in turnover are the closure of parquet face layer production in France and the sharp drop in sales of sawn timber in North America due to the trade dispute between the USA and China. The company is reacting by adjusting its business operations and overhead costs. In the future, Danzer will focus on those business areas for which it has clear competitive advantages.

44 percent of the company’s 2019 turnover of 180 million euros came from the sale of sliced products, 33 percent from sawn products and the remaining 23 percent from roundwood, specialties and services. In 2019 Danzer delivered products to 76 countries. The following ten countries accounted for 76 percent of sales, in that order: USA, UK, Germany, Canada, China, Austria, Poland, Mexico, India and Slovakia. Sales remained stable or increased in most regions compared to 2018. Sales to China decreased by two thirds, mainly due to lower sales of sawn hardwoods. Danzer’s sales in Europe also declined: Traditional veneer production in Europe was limited to species that can be profitably marketed and sustainably purchased. Following the closure of Danzer France, parquet face layer production was unable to offset the planned reduction in classic veneer production.

In view of lower sales figures, Danzer streamlined its operations and reduced costs throughout Europe and North America. Hans-Joachim Danzer, CEO, explains: “The recent adjustments have put Danzer in a strong position to implement our strategy: Using modern technology to ensure customer-oriented and efficient use of the valuable hardwood resource and promoting the use of hardwoods for its many benefits. Examples at Danzer include waste reduction through knives instead of saws, the use of scanners and artificial intelligence to meet customer requirements, and the development of new hardwood products with superior decorative or functional characteristics”. Assets and activities that do not fit into this strategy will be reviewed. Danzer recently sold nearly all of its North American hardwood forest operations.

In 2019, Danzer sold more than 150 different hardwood species: 61 percent of sales were North American, 31 percent European, 7 percent African and 1 percent from other regions of the world. The top ten species accounted for 83 percent of Danzer’s 2019 sales. The three top-selling species were European oak, American walnut and American white oak – followed by maple (hard maple), European ash, American cherry, American red oak, sapelli and American white ash. Danzer continues to process all woods as close as possible to their place of origin.

Danzer’s operating result in the first quarter of 2020 was satisfactory and reflects the cost adjustments made. In April 2020, the corona crisis led to a decline in turnover of approximately 30 percent on a monthly comparison. “We expect turnover to recover slightly in May,” concluded Hans-Joachim Danzer.

Drive digitization forward especially in the crisis

In the current corona crisis, the biggest challenge for mechanical engineering companies in the area of digitization is the lack of digitization strategies within the company. More than half (53 percent) of the software houses surveyed say that postponing or even cancelling digitization projects is a major problem for their mechanical engineering customers.

This was the result of a quick survey conducted by the German Engineering Federation (VDMA) Software and Digitization Association. Software companies from the VDMA’s member area were surveyed to answer the questions with regard to their customer base in the mechanical engineering industry. When asked about the challenges of digitization, missing collaboration tools (47 percent) and the lack of or insufficient digital continuity of value-added chains (43 percent) are further problems. In contrast, mechanical engineering is well positioned in production-related digitisation. “For example, networking within production and the integration of sensor technology to optimise production,” sums up Prof. Claus Oetter, Managing Director of VDMA Software and Digitisation.

The surveyed software houses from the VDMA membership see the opportunity, especially in the crisis, to drive forward the digitalization of business processes and workflows. “A major opportunity will be to build and strengthen customer relationships by combining distance and proximity, for example by visualising showrooms or training sessions,” explains Oetter. It also shows that digitalization is an important component in building resilience against crises. “Anyone who now courageously and consistently questions their business model will generate opportunities from the crisis. For example, anyone who has already mastered virtual commissioning and simulation is already a winner,” says Oetter.

The survey shows that about half of the software and digitization industry (51 percent) are thinking about new business models or have even already changed their portfolio due to the current situation. Examples include the expansion of virtual training or product presentations, as well as products for remote support and predictive maintenance.

Organizer expects to hold on to the date 10 to 13 November

Mesago Messe Frankfurt GmbH assumes for the time being that “Formnext” can take place in Frankfurt on the planned date of 10 to 13 November 2020. At the same time, the trade fair organiser is working flat out on a concept for health protection and a digital supplement to the world’s leading trade fair for additive manufacturing and modern industrial production.

“We are still convinced of the unique character and the advantages of a presence trade fair,” says Sascha F. Wenzler, Vice President “Formnext”, Mesago Messe Frankfurt GmbH. “And even if digital exchange will never be able to replace personal contact, it does offer more possibilities than was conceivable just a few weeks ago”. This is why “Formnext” wants to focus more strongly on digital perspectives: this should also enable exhibitors to present products and solutions digitally to an international trade audience. Concepts and platforms are currently being developed for this purpose, and Mesago Messe Frankfurt GmbH intends to provide information about them in the coming weeks.

Another reason for a hopeful outlook for November is the resolutions passed by the German federal and state governments on 6 May 2020, according to which trade fairs no longer fall under the category of major events that pose a particular health risk. “This is very good news not only for the trade fair industry, but for the economy as a whole,” said Wenzler. “After all, trade fairs are an important motor for innovation and value creation in industry, especially after months of economic stagnation in many sectors and areas”.

Since the health of exhibitors, visitors and employees remains a top priority, concepts are currently being developed in cooperation with Messe Frankfurt to provide a high level of health protection. These include, for example, a reduction in the number of people, high standards of hygiene and possibilities for tracking contacts. These concepts are currently being coordinated with the relevant authorities and subsequently implemented accordingly.

In addition to health protection, other important aspects have also been taken into account in the design of “Formnext” 2020. Among others, the economic environment, the economic situation in the AM industry and the development of travel opportunities in Europe and the world are taken into account. “After all, even in these challenging times we want to organize a trade fair that takes the best possible account of the situation and the needs of the participants and the market,” Wenzler explains.

Renewed membership growth

The MMFA, the association of multi-layer modular floor coverings, welcomes other players to its network. Flooring Industries Ltd has joined the association as an associate member, and Servaco Product Testing – Joint Venture with Vito as a supporting member.

“With Flooring Industries Ltd. and Servaco Product Testing – Joint Venture with Vito, we are gaining two highly qualified organisations that will strengthen our expertise in product testing and intellectual property management in relation to flooring technologies,” MMFA Chairman Matthias Windmöller (Windmöller) welcomed both organisations.

“The fruitful collaboration that will result from our membership will – I am sure – benefit our company, the MMFA and our colleagues, the other members,” said Bart Van der Stockt, Managing Director of Flooring Industries Ltd. The company, which also operates under the name Unilin, Division Technologies, manages and markets the innovations and intellectual assets of the Unilin and Mohawk Group, and to date manages more than 2,000 patents in over 300 patent families.

Marc Lor, Managing Director of Servaco Product Testing – Joint Venture with Vito, said that “the company values the MMFA’s high calibre membership community. We are therefore keen to bring our expertise in the field of product emission testing to the association’s knowledge pool”. Founded in March 2019, the Belgian-based company provides laboratory and consultancy services in the niche market of product emission testing and performance testing for the reduction of volatile organic compounds. Product emission testing analyses the impact of all types of building and consumer products and materials on indoor air quality.

With the addition of Flooring Industries Ltd and Servaco Product Testing – Joint Venture with Vito, the MMFA now has 25 full members (manufacturers of MMF flooring or their European representative bodies), 28 associate members (suppliers) and three supporting members (scientific institutes).

300 million turnover in 2019 just missed

2019 was a very successful year for the Ima Schelling Group with an increase in turnover of around 10 percent – a total of 299 million euros were generated. The hurdle of 300 million was thus narrowly missed, thus definitely representing the target for the next few years. Maximilian Lehner, Managing Partner of the Ima Schelling Group, is also very satisfied with the internal processes when talking to “möbelfertigung”: “We have restructured a lot in the last few years, last year we restructured the management once again and have now managed to make the individual companies Ima and Schelling really grow together into a group with one management floor and cross-location managers”. The last major change was made with Christoph Geiger. He previously held the technical management of Schelling in Schwarzach and, after the departure of Andreas Rinke, the long-standing technical managing director at Ima at the end of 2019, he took over overall responsibility for the areas of research & development, contract engineering, production, materials management, quality assurance and installation & customer service in Germany and Austria. With this new constellation, the group now sees itself as really well positioned, says Lehner.

The fact that the 300 million sales hurdle was within reach was proven by the current 2020 financial year until the COVID 19 pandemic massively spread to Europe: “We still had a very good order intake until mid-March. If things had gone on like this, it would have been a really fantastic year 2020,” describes Lehner. “In the first few weeks after the lockdown, there was certainly some uncertainty among everyone. And we sensed that decisions were rather not made in the last few weeks, the order intake has noticeably declined since mid-March. However, the time was certainly used to deal with the latest technology, which is why we even had a relatively large amount of customer contact. Digitally and not live, of course. However, it is currently difficult to estimate the extent to which this will result in purchasing decisions. We are definitely ready. Basically, the year 2020 is already very much marked by a number of major projects that will keep us busy for a long time: We will feel the ‘corona bend’ above all in 2021,” assumes the Sales Director.

Lehner is basically very satisfied with the performance of the Ima Schelling Group worldwide in the current corona phase: “As we have a subsidiary in China, we were aware of the corona problem at a very early stage and were able to come up with ideas for it. We were alarmed simply by the fact how massively the Chinese government had introduced measures. And we also saw live what happens during a lockdown, because all our customers in China had to close down their production facilities and our service employees were unable to travel. In addition, some Chinese employees returned very late from the New Year celebrations because they were from the Wuhan area and had to be quarantined accordingly.

We were therefore able to set the course for Europe as early as February to safeguard the health of the employees, to take care of home office workstations or video conferencing systems and the like and to ensure that work processes did not come to a standstill. In the beginning, of course, it was only hygiene instructions to the employees, we also provided disinfectants. However, when the first restrictions were imposed in Austria, we had at least one day’s notice because we maintained good relations with the authorities. Within just one day, over 450 employees were able to move directly to the home office. All in all, it has to be said that it went very well for us and we had no worrying incidents within the group”.

And yet the Ima Schelling Group also had to solve unforeseen difficulties. Lehner commented: “We were no longer able to deliver in Italy or Spain, for example. Because no one was on site at the customers’ premises any more, because our fitters were no longer allowed to travel there either and simply could not get a hotel room. We had to rent space to store the machines that had already been completed, as space was needed in the factories. On the other hand, we have succeeded in making customer acceptance tests using video on the virtual route, for example in Canada. So we have been able to put our digital possibilities to the acid test under real conditions – with very good results. Fortunately, everything is now opening up again and we are confident that we will also be able to make up for delivery delays.

The Ima Schelling Group is now intensively involved in determining what the next steps will be, for example if trade fairs as a sales tool are cancelled for a longer period of time. Lehner explains: “This is exactly the topic we are currently working on and we are looking into how we can provide our customers with all the information they need without analogue trade fair presentations and real meetings. We are thinking about various tools and examining how we can make the best possible use of them. For example, in the form of a virtual trade fair stand or similar. We think that in 2020 it will indeed be very difficult to have trade fairs. However, we hope that we will have a “Ligna 2021″, for example, and we are driving projects and new developments forward with this focus. Especially when we are now talking about a longer phase until we return to a halfway normal everyday life, the trade fair in Hanover is a great way to get in touch with customers again on a larger scale”.

In addition to the sales and the change in management, there were other highlights at Ima Schelling in the past fiscal year: The construction of a new central warehouse in Lübbecke has begun and is fully on track, with completion planned for August. In the long term, this will not only optimize costs, but above all will further improve the flow of materials at the German location. This will result in reduced production times, and customers will be able to obtain spare parts even more reliably. However, investments were not only made in Lübbecke: in Schwarzach the company moved into a new office building in 2019. “A nice sign to the employees is the new company day-care center in Lübbecke, which will move to another building once the situation with the coronavirus has calmed down a bit – the day-care center had already been put into operation,” says Lehner. In addition, the Ima Schelling Group founded a new subsidiary in Switzerland last year. “From a perspective perspective, it is very important for us to have a local branch office especially for the Swiss market”. In addition to Germany, Austria and now Switzerland, the mechanical engineering company has sales and service branches in the USA, Canada, UK, Spain, France, Italy, Poland, Singapore and China. In Slovakia there is a pure production site, in Poland machines from the Ima as well as from the Schelling range are now manufactured.

Group-wide, the Ima Schelling Group employed 1,660 people at the end of 2019, 120 of them trainees.

Annual balance sheet 2019 very good & Management board succession clarified

In 2019, the designer bathroom manufacturer was able to continue the growth trend of previous years with new records in terms of revenue, operating result, and net income. Despite low global economic growth, the Group’s total revenues were up by 4.8% (€486.8 million) at year end. Net profits increased by more than 20% year on year. This continued profitability and a solid balance sheet put the company in an ideal position to continue on its successful course once the Covid-19 pandemic has been overcome.

In 2019 Duravit was again able to secure its market position in Germany. Duravit’s home market thus remains a key pillar for the company’s success.

China produced the highest revenue growth with 20%. A strong result in Egypt also contributed to the positive development of the business. In Europe, key sales markets such as Switzerland and Spain generated above-average revenue growth alongside Germany.

The introduction of a new “Sensowash” generation produced especially dynamic growth in the shower-toilet segment. The “Sensowash Starck f” combines iconic design with maximum comfort and was met with an immediate and lasting positive response.

Duravit also enjoyed gains in other product areas. Two new high-end series developed in collaboration with sieger design again raised the bar for exclusive bathroom design. The faucet business also did extremely well. The sanitary ceramics business was also up, and the private label business, with a share of less than 2% of overall revenues, made a positive contribution to the development of key business relationships.

As reported, Prof. Richter will leave the company on 30 June 2020 to devote himself to new activities. His designated successor is Stephan Patrick Tahy, who will take on the role of Duravit CEO. Mr. Tahy is currently CEO of De’Longhi GmbH Germany and was previously Vice President and General Manager at Mattel Inc.

Selects PCT to Supply Ebeam Systems for New Line

Interprint, a leading global décor printer, has selected PCT Ebeam and Integration to supply the electron beam systems for a new coating line to be installed at the company’s location in Ozorków, Poland. Jochen Geiger, Managing Director of Interprint Polska, states, “PCT was selected based on the technical advantages offered by their design, their experience in this market, and for the professionalism displayed by their staff.”
The electron beam units will be used to instantly cure coatings on décor papers. This process provides the desired properties of high scratch resistance and strong chemical resistance. A wide range of gloss and matte finishes can also be achieved. The use of ebeam cured coatings is consistent with industry efforts to eliminate formaldehyde in the finished products of furniture, flooring, and cabinets.

“We are very pleased to earn this order from Interprint, especially in the midst of these uncertain times. Our team looks forward to a successful partnership with this respected company,” states Karl Swanson, President of PCT.

Recorded a good first quarter 2020 with a slight increase in orders

Despite the corona pandemic, the Homag Group was able to close the first quarter of 2020 with production almost continuous at all major plants. In March, however, the first effects of the corona pandemic were already being felt at the successful mechanical engineering company. The acquisition of the trading partner in China was completed.

In the first three months of 2020, sales revenue of the Homag Group amounted to 290 million euros, down nine percent on the prior-year period (319 million euros). Order intake also fell by nine percent to 304 million euros (prior year: 335 million euros). At EUR 556 million, the order backlog as of 31 March 2020 was slightly higher than at the end of 2019 (31 December 2019: EUR 546 million). In the first quarter of 2020, the Homag Group generated operating EBIT of 16.1 million euros (prior year: 20.5 million euros). As of March 31, 2020, the Homag Group employed 6,613 people (March 31, 2019: 6,633).

Chairman of the Management Board Pekka Paasivaara explains: “We have made a good start to the year and in January and February our order intake was noticeably higher than in the previous year. However, in March the corona pandemic had a significant impact on us, as it did on the entire industry. Despite the current challenging situation, we acquired the remaining 75 percent of the shares in our long-standing sales and service partner in China at the beginning of May. We are thus investing in our global presence and are very well positioned for the expected market growth in China.

So far, the Homag Group has largely been able to maintain production even during the crisis. “Our supply chains are by and large stable,” says Pekka Paasivaara. “Our hygiene measures introduced at an early stage are taking effect and I am very proud of how disciplined and responsible our employees are in dealing with this challenging situation. This keeps us fit for work.”

Contact with customers is also generally stable, as Paasivaara continues to explain. “It is true that the situation is developing with very different dynamics in the individual countries and regions. But in all markets we can support our customers with our digital tools and communication channels. This includes, for example, virtual planning with the digital twin or our wide range of service apps.” Nevertheless, the reluctance of customers to invest is clearly noticeable. For the time being, the Homag Group expects the market to remain cloudy, which will lead to a significant year-on-year decline in order intake, particularly in the second quarter of 2020. A gradual recovery is expected in the second half of the year.

High production level could be maintained in 2019

According to figures from the Federal Statistical Office, German manufacturers of woodworking machinery reached a new production record of 3.37 billion euros last year with a small plus of 0.6 percent. While declining growth rates of 14, 5 and 2 percent were achieved in the first three quarters, production in the fourth quarter was down 10 percent. This reflected the lower order activity of the previous months in Germany. “Overall, we can be very satisfied with the results for 2019. However, whether we will be able to maintain the minus 10 percent forecast in September last year for the current year 2020 is more than questionable at the present time,” said Dr. Bernhard Dirr, Managing Director of VDMA Woodworking Machinery, against the background of the challenges facing the industry in the corona pandemic.
Last year, the export value of German manufacturers fell by 3 percent to 2.40 billion euros compared to the previous year. Above all, the losses in the three top markets China (-3 percent), USA (-16 percent) and Poland (-19 percent) contributed significantly to the negative development.
German imports also fell by 5 percent to 556 million euros.

The extent of the expected turnover losses is hardly foreseeable at the present time and therefore cannot yet be roughly quantified. In any case, the challenges to which the woodworking machinery as well as the entire mechanical engineering industry will have to adapt will probably extend well beyond 2020. Fortunately, production is still at a relatively high level. On the positive side, the supply chains – with a few exceptions – still run quite well in Germany. However, the supply of parts from abroad, for example from Poland or Italy, is proving difficult in some cases.

The high level of capacity utilisation applies above all to companies active in systems and plant construction. In most cases, capacity utilization is still assured for the coming months. However, there are significant delays in the on-site installation of the machines to be delivered due to international travel restrictions. In the case of the standard machine manufacturers, it can be assumed that the order backlog will be processed shortly. Almost all of these companies are already using short-time working to a greater or lesser extent. If orders continue to fall short to a degree, as has been the case since mid-March, this will have a massive impact on business activity into the coming year.

“The basically high global demand for wood products makes us optimistic. Be it the increased trend towards industrial timber construction or affordable furniture for the emerging economies. We are working with the material of the future. Hence, we are not worried about the industry. Growth will return,” Dirr is sure.

You can see the most important export and import figures provided by VDMA by clicking on the start image and going through the graphics.