Liebherr bullish with strong results

Liebherr is bullish with strong financial results.
Finance & Funding / April 5, 2022 1 minute 30 seconds Read
By MJ Woof
The new facility being built at Liebherr’s plant in Telfs, Austria is one of many new investments in the company’s capabilities – image courtesy of Mike Woof
Liebherr says it has experienced a significant boost in turnover for 2021. The firm achieved a turnover of €11.639 billion, an overall increase of €1.298 billion or 12.6% from 2020. The Liebherr Group was almost able to match its previous record year in 2019 in terms of annual turnover.

This was achieved despite conditions that were difficult for manufacturing as from the second quarter of 2021, it became difficult to procure various raw materials, components and electronic parts. This resulted in price increases and bottlenecks in the global supply chains.

In spite of the supply issues, Liebherr recorded a significant increase in sales revenues compared to the previous year. The Liebherr Group grew in 11 of its 13 product segments and in almost all of its sales regions.

Revenues in the earthmoving, material handling technology, deep foundation machines, mobile and crawler cranes, tower cranes, concrete technology and mining product segments were 17% higher than in the previous year at €8.009 billion.

Sales increased in the European Union, which has traditionally been the Group's strongest sales region. High growth rates were recorded in almost all EU markets, with France in particular showing above average development. Outside the EU, there was a marked rise in sales in the United Kingdom, among other regions. Positive development was also seen in North America, as well as Central America and South America, where strong growth came especially from Brazil.

However, the Liebherr Group faced declines in Africa, as well as in the Near and Middle East, whereas the financial year in Asia and Oceania ended with a moderate rise.

In 2021, the Liebherr Group achieved a net profit for the year of €545 million, a value above the level before the pandemic. Operating results and the financial result grew considerably compared to the previous year. The 2021 business year also saw a significant increase in the number of employees. At the end of the year, the Liebherr Group employed 49,611 people worldwide. Compared to the previous year, this represented an increase of 1,686.

As a technology company, the Liebherr Group is keen to push technological barriers and invested €559 million in research and development last year. The bulk of this was used in the development of new products. Numerous cooperative ventures with universities, or higher education institutions and research institutes were initiated or continued.

Alternative drive technologies continue to be a focal point of the research projects at Liebherr. The Liebherr Group takes a technology neutral approach. In 2021, it worked, for example, on hydrogen powered combustion engines and their injection technologies, as well as electric drives.

The firm has developed a number of electric machines and has prepared various product lines for the use of hydrotreated vegetable oils (HVO) as a fuel.

Digitalisation was another focal point of R&D activities, while the company invested €742 million in its production sites and its global distribution and service networks. Liebherr has also established new manufacturing operations in China and India.
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