Hilti maintains R&D spend through pandemic

By Murray Pollok22 March 2021

Hilti Group reported a 9.6% decline in sales in 2020 to CHF 5.3 billion (€4.8 billion), with operating profits down 7% at CHF 728 million (€660 million).

Currency changes added to the decline, with revenues in local currencies down 4.3%. The 5% negative currency effect was the result of depreciating currencies in growth markets and the weaker Euro and US dollar.

Separately the company has announced its succession planning, which will include the appointment of Jahangir Doonaji as CEO from the start of January 2023.

Pandemic lockdowns in the first five months of the year had a major impact on business, and in Europe there was a clear north-south divide, with growth in Scandinavia and Central Europe and upper single-digit declines in Southern Europe.

North America was “quite robust”, with a decrease of only 4.3%. Significant reductions were recorded in the Eastern Europe/Middle East/Africa (-8.2%), Latin America (-8.1%) and Asia Pacific (-7.0%).

“2020 was a turbulent business year which also shows in our figures”, said CEO Christoph Loos. “Overall, we came through the pandemic year with a black eye and were able to avoid compromising the financial stability of our company. At the same time, we continued to invest into our strategic priorities.”

The company invested CHF 385 million (€349 million) on research and development in the year, a drop of just 2.5% compared to 2019.

Hilti expects a moderate economic recovery this year, which will be heavily dependent on the pandemic, with sales growth in local currencies in the upper single-digit range.

The company imposed a recruitment freeze last year, with the employee count down 1.5% to 29,549 in the year.

MAGAZINE
NEWSLETTER
Delivered directly to your inbox, International Rental Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
Latest News
Infrastructure spending and sustainability to drive construction’s growth
Bright future for construction but supply chain challenges and worker shortages to get worse
Hy-Brid Lifts appoints new CEO
Jay Sugar rejoins parent company Custom Equipment as president and CEO, following a brief stint in 2019 
Change of private equity ownership for Renta Group
Transition to support company’s expansion into continental Europe
CONNECT WITH THE TEAM
Murray Pollok Managing Editor Tel: +44(0)1505 850 043 E-mail: murray.pollok@khl.com
Simon Kelly Sales Manager Tel: +44 (0) 1892 786 223 E-mail: simon.kelly@khl.com
CONNECT WITH SOCIAL MEDIA