LAPP continues growth course

LAPP has once again achieved double-digit growth. The turnover generated by the global market leader for integrated cable and connection technology solutions increased by 12.3 per cent to EUR 1,153 million in the last financial year (1 October 2017 to 30 September 2018). The number of employees increased by 12.6 per cent to 4,245. Earnings before taxes increased by 5.5 per cent to EUR 58.6 million.

“We are fully on track and have been able to achieve above-average growth for several years through our strategy 2020. Europe in particular has seen positive growth.However, I still see a lot of room for improvement for LAPP in America. And I’m sure we’ve not exploited our full potential in Asia, either. We still have plenty to do in both regions,” emphasised Andreas Lapp, Chairman of the Board of LAPP Holding AG. The family-run company based in Stuttgart achieved its highest growth in Europe. And it’s all down to high demand, in particular in the sectors of industrial data communications (IDC) and ÖLFLEX® CONNECT (assembled cable systems) alongside company acquisitions in Finland, Poland and Switzerland.

On balance, the considerable increase in turnover was only slightly affected by the increased copper price and currency fluctuations. As the actual price of a cable is calculated daily based on the current price of copper and copper prices were higher by 7 per cent on average throughout the year (EUR 569/100 kg), copper prices also boosted turnover by 1.9 per cent. By contrast, the currency fluctuations took their toll with a minus of 1.8 per cent. Once adjusted, the sales volume we achieved therefore increased by around 12.2 per cent. “In relation to turnover, acquisitions account for an increase of around 3 per cent. This confirms last year’s performance capacity with operational growth of around 9 per cent,” emphasised Dr Ralf Zander, Member of the board for Finance and Controlling. Growth in the EMEA region (Europe, Middle East and Africa) was particularly strong. Turnover grew here by 15 per cent to hit EUR 826 million.