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Global partner for a safe world
Global partner for a safe world Adjusted operating profit (EBIT) also improved significantly, rising by 7.4 percent to around 175 million euros.The number of employees increased by 2,400 to 35,000 as a result of recruitment and eleven acquisitions.In view of the global mega trend of safety, DEKRA sees itself at the beginning of a new stage in the company's history.
New stage in DEKRA's corporate history:
- Turnover increased by 8.6 percent to 2.5 billion euros in 2014
- New record figure for adjusted operating profit
- Number of employees increased by 2,400 to 35,000
- Strategic acquisitions strengthen international market position
- Focus on growth markets North America and Asia-Pacific
“We will continue to grow between six and eight percent annually and hire thousands of employees in the coming years,” says DEKRA CEO Stefan Kölbl. “By 2025, we will be the global partner for a safe world. ”Since 2004, DEKRA has increased its turnover and earnings every year and created thousands of new jobs in Germany and around the world. “That's what we mean by sustainable and healthy growth,” adds CFO Roland Gerdon.
DEKRA is celebrating its 90th anniversary in 2015 and will use the years leading up to its 100th anniversary for further expansion.The company has therefore aligned its strategy with the growing global demand for safety and is focusing on the growth markets of North America and Asia-Pacific. There is enormous potential for greater safety not only in traffic, but also in the private household and leisure environment, for example. “Product testing and certification is a key market in which we want to continue to grow,” says Stefan Kölbl, referring to the new laboratory complex in Arnhem in the Netherlands, the global center for the product testing business.
The DEKRA CEO also sees good opportunities in the core business of automotive services.DEKRA has long been the global market leader with 26 million vehicle inspections.At the same time, however, there is still great potential for growth in this area, as many countries are still in the early stages when it comes to road safety. In Kölblin's view, safety must become a top priority in every respect: “It's not just about safe technology; it's also about an uncompromising safety culture in companies, from top management to factory workers, and a high level of safety awareness among all of us.”
The internationalization of the business remains at the top of DEKRA's agenda. Acquisitions play an important role alongside organic growth. “We see scope for further strategic acquisitions,” says the DEKRA CEO. The focus is primarily on acquisitions of companies in North America and the Asia-Pacific region. A strategically particularly important acquisition at the beginning of the year was theQuieTek Corporation in Taiwan. This will greatly expand the electromagnetic compatibility (EMC) testing business in Asia for products such as cell phones and tablets as well as electronic components.
DEKRA Automotive business unit expands testing business
The DEKRA Automotive business unit was able to further consolidate its already leading market position both nationally and internationally, with sales improving by 7.4 percent to 1.33 billion euros, plus around 120 million euros from industrial testing services in Germany provided by DEKRA Automobil GmbH.
In the highly competitive German market, DEKRA Automobil GmbH maintained its market share of around 34 percent for general inspections and increased its total turnover by around 3 percent to 1.03 billion euros.As on a global level, DEKRA is also the industry leader in Germany with around 11 million vehicle inspections nationwide every year.
In the strategically important Asia-Pacific region, Vehicle Testing New Zealand (VTNZ), which was acquired in 2013, achieved record sales and earnings, and in New Zealand DEKRA achieved another success in the internationalization of its business: from May this year, VTNZ will be responsible for practical driving tests for car, truck and motorcycle drivers throughout the country for the next five years. VTNZ won a corresponding tender thanks to its dense network of around 80 stations nationwide, its experience in theory examinations and a competent project team, which was supplemented with know-how from Germany, as well as its many years of experience in driving license examinations in the new federal states. “This is a prime example of how we are creating synergies within the Group in order to expand faster worldwide,” says Stefan Kölbl.
In addition, DEKRA has further increased the number of test centers in important target countries such as Sweden and the USA - both by opening its own stations and through acquisitions.DEKRA now tests at 50 stations in the USA in the states of Georgia, California, North Carolina, Texas and Utah.The number of test centers in Sweden has been increased by more than half to 38 - and is to be expanded to around 50 this year.
DEKRA Industrial business unit with strong market position
The DEKRA Industrial business unit achieved an increase in turnover of 5.9 percent to 702.2 million euros in a partly challenging economic environment. The positive development in North America, Asia and South Africa contributed to this.DEKRA had recently positioned itself in high-margin business areas there through strategic acquisitions. The consulting business, materials testing and product testing and certification in particular recorded clear growth.
In Europe, DEKRA was able to complete its range of testing services for the rail industry, and the acquisition of Dutch company Plurel B.V. has made DEKRA one of Europe's leading providers in this sector. Europe's most modern laboratory complex for product testing and certification was also opened in the Netherlands. “From Arnhem, we are managing the global expansion in this promising growth market,” explains Stefan Kölbl. “As one of the world's leading product testers, we have an excellent basis for further expanding our business with internationally active customers.”
In addition to the testing of consumer goods, the market for testing and certifying components for electric vehicles is also growing in China. “We have established ourselves as one of the leading providers of services relating to electromobility,” says DEKRA CEO Kölbl. The globally active expert organization works closely with vehicle manufacturers and regulatory authorities to test battery technology and charging infrastructure.
DEKRA has strengthened its international consulting business in the growth areas of organizational and process safety through the acquisition of RCI Safety. The US company now supports the globally active DEKRA specialists with its software expertise in occupational safety.DEKRA Insight provides a comprehensive range of services as a management consultancy for safety culture, ranging from behavior-oriented safety consulting at all company hierarchies to explosion protection.
DEKRA Personnel business unit records strong growth
As one of the largest private training providers and a top 10 provider of temporary employment services in Germany, the DEKRA Personnel business unit expanded its business significantly in 2014, with sales increasing by 16.9 percent to 456 million euros. “We are excellently positioned in the markets for training and personnel services,” commented CEO Kölbl on this success.DEKRA Akademie expanded both its corporate customer and international business.DEKRA Arbeit benefited from its clear positioning as a quality provider in the temporary employment sector.
DEKRA Akademie's offer of legally required further training for truck drivers in accordance with the “Professional Driver Qualification Act” was very successful in 2014, with around 100,000 participants, an increase of 50 percent on the previous year. A new offer for the qualification of foreign nursing staff for German clinics and nursing homes also met with great interest. In addition to the three-year training course that DEKRA has been offering in Hungary since 2013, there is now a twelve-month intensive training course. In Serbia, the first courses began in November 2014, and DEKRA has also established subsidiaries in Romania and Greece, where local nursing staff are recruited and prepared for their deployment in Germany, and in Greece, where young people are trained in tourism professions based on the German model.
DEKRA Arbeit also recorded strong growth. Despite the restrictive regulatory environment, business as a renowned personnel service provider for major customers in the automotive and logistics sectors was significantly expanded. The number of temporary workers rose by around 1,500 to 12,000 employees. The renowned Lünendonk ranking now ranks DEKRA among the top 10 companies for temporary staffing and personnel services in Germany.
Current financial year: positive outlook
DEKRA grew for the eleventh year in a row in 2014. This speaks for an excellent positioning in the context of the global megatrend of safety. DEKRA CEO Stefan Kölbl expects growth of between five and eight percent for the current year. “On our way to becoming a global partner for a safe world, we are continuing to focus on healthy, continuous growth - organically and through acquisitions,” says Stefan Kölbl.
Press contact:
Dr. Torsten Knödler
Phone: +49 711 7861 2075
torsten.knoedler(at)dekra.com
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