Freudenberg Group Continues to Grow in North America
Freudenberg also continued to invest in both manufacturing and R&D facilities in North America, spending $98.4 million (83.4 million).
The Freudenberg Group completed another year of solid performance,
ending 2018 with global sales of $11.14 billion (€9.45 billion). North
American sales in 2018 rose 2.5 percent in U.S. dollars.
The Group’s global sales represented a strong organic growth of 4.3
percent. After including the effects of acquisitions and disinvestments,
significant negative exchange-rate impact, and the effects of the new
International Financial Reporting Standards (IFRS 15), sales
increased by 1.2 percent over the previous year.
“Our strong strategic and operational planning are the keys to
Freudenberg success, along with the team spirit of more than 49,000
employees as well as agile cooperation with our customers,” said Dr.
Mohsen Sohi, Freudenberg Group CEO. “With continued year-over-year
investment increases in innovation (4.7 percent of sales in 2018) paired
with strategic acquisitions, we want to ensure an equally successful
future.”
In North America, Freudenberg’s 11 business groups generated sales of
$2.89 billion (€2.45 billion) in 2018, a 2.5 percent increase over 2017.
The number of employees rose to 10,783, up 4.8 percent compared to 2017.
Freudenberg also continued to invest in both manufacturing and R&D
facilities in North America, spending $98.4 million (€83.4 million).
Those investments were spread across different business groups in
California, Ohio, Michigan, New Hampshire, and in Mexico. They also
included the start of activities around the establishment of a new
global headquarters and plant for Freudenberg Medical in Beverly,
Massachusetts.
Freudenberg’s North American investments also included the acquisition
of a minority stake in XALT Energy in Midland, Michigan, which has since
increased to a majority stake.
“Investments in North America, as in previous years, were made in
capacity increases, new equipment purchases and other improvements
necessary to meet customer expectations,” said Bob Evans, president of
Freudenberg North America. “They also included forward-looking
investments in future technologies such as lithium-ion battery
technology. These investments will continue in 2019.”
In 2018, Freudenberg companies in North America represented 26 percent
of global sales, maintaining the region’s status as the second most
important market for the Group after Europe.
About the Freudenberg Group
Freudenberg is a global technology group that strengthens its customers
and society long-term through forward-looking innovations. Together with
its partners, customers and research institutions, the Freudenberg Group
develops leading-edge technologies and excellent products and services
for about 40 markets and for thousands of applications: seals, vibration
control components, technical textiles, filters, specialty chemicals,
medical products and the most modern cleaning products. Strength of
innovation, strong customer orientation, diversity, and team spirit are
the cornerstones of the Group. The 170-year-old company holds strong to
its core values: a commitment to excellence, reliability and pro-active,
responsible action. In 2018, the Freudenberg Group employed more than
49,000 people in some 60 countries worldwide and generated sales of some
€9.5 billion. For more information, please visit www.freudenberg.com
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