Business News
Giesecke & Devrient Invests Record Sum of 200 Million Euros Despite Economic Crisis
Tuesday 11. May 2010 - Group sales of around 1.7 billion euros on a par with previous year
EBIT falls but remains high at 140 million euros
Consolidated net income of 105 million euros marks second-best result in companys history
G&D expects stable revenues in a challenging market environment in 2010
Technology provider establishes charitable foundation
The technology provider Giesecke & Devrient (G&D) performed well in fiscal 2009. With the economic crisis in full swing, it achieved consolidated net sales of around 1.7 billion euros, on a par with the high level of the previous year. At the same time, the company increased its investment in new technologies and equity stakes to a record level of some 200 million euros. Earnings were down approximately 12 percent on the previous year, with EBIT coming in at 140 million euros. The net income for the year of 105 million euros (111 million euros in 2008) was the second best in the company’s history.
“Despite the financial and economic crisis, we invested around 200 million euros in 2009, financed almost entirely from our own resources. That has kept us well on course for continued future growth,” pointed out Dr. Karsten Ottenberg, Chairman of the Management Board and CEO of Giesecke & Devrient, speaking at the Groups annual report press conference in Munich. “Our earnings remain strong and our sales in 2009 were on a par with the previous year.”
Accounting for more than half of total sales, the Banknote business unit has traditionally been G&Ds main sales driver. In 2009, this business unit generated sales of 896 million euros, down only marginally from the previous year. This slight fall resulted from retailers and branch banks taking a cautious stance on investing in small banknote processing machines.
The Cards and Services business unit achieved sales of 589 million euros, only around three percent short of the previous year’s excellent performance. The Payment division reaped the benefits of the continuing migration from magnetic stripe cards to the more sophisticated smart cards. Business in value-added SIM cards lagged behind expectations due to the difficult economic situation faced by the industry.
2009 saw a strong performance by the Government Solutions business unit. Sales increased by 15 percent to 183 million euros on the back of a number of international projects. The division also profited from demand for improved identification methods offering higher levels of data protection.
The New Business division continued to perform well. The past fiscal year saw this division increase its sales by 27 percent to 16 million euros as a result of new product launches.
Giesecke & Devrient created 273 new jobs last year, increasing its overall global workforce to 10,122. In research and development alone, staff numbers climbed above the 1,000 mark, meaning that one of every ten employees is now engaged in R&D.
G&D continues to take its social responsibilities seriously. The family-owned company has established a charitable foundation furnished with basic assets of 20 million euros. The foundation will be focusing its efforts on supporting projects and programs in the fields of education, intercultural understanding, and the art of printing.