AUSTRIA - With a sales revenue increase of 8% to EUR 1,79 billion, fittings manufacturer Blum reports a successful conclusion to the financial year of 2016/2017, which ended on 30 June. The family company headquartered in Höchst, Austria credits its success on its innovative products, international market presence, consistent investments in R&D and highly qualified staff.
As 48% of the company turnover was generated within the EU and 16% in the US, Blum supplies 120 markets all over the world, making it one of Austria's largest export companies. In June 2017, the company won the prestigious Austrian export prize, the "Global Player Award", in recognition of its outstanding performance in exports.
During the past financial year, the fittings manufacturer has seen growth rates across all market regions. In Western Europe most markets reported an increase in sales, the only exception was Great Britain, where the falling pound caused a loss of revenue. Eastern Europe, however, continued to thrive, with growth figures also reported for Russia and Turkey. Blum also achieved excellent results for North American and the Asia-Pacific region. This was achieved considering that throughout the o FY 2016/2017, material prices remained a challenge. According to the company, steel prices soared towards late 2016, followed by zinc, as well as packaging materials and other related commodities.
Total investments of the Blum group in the financial year 2016/2017 amounted to 174.62 million euro. In Vorarlberg, two construction phases of Plant 4 in Bregenz were completed. Construction work on the future Plant 8 in Dornbirn, the new Blum stamping center, is in full swing. With 66 million euro, this project constitutes the largest single investment in the company's history. The first production hall is scheduled to be operational by mid-2018, the second construction phase should be completed by summer 2019. Plant 2 in Höchst will also include a new administrative building, with employees set to move in by the end of 2018. An important share of Blum investments goes into the expansion of international Blum marketing organizations. In Greece, the company has commenced operation of its new office and warehouse complex; in Australia, the expansion of the automated warehouse has been completed, and the new high-bay warehouse in Poland will be operational by the end of this year.
On the outlook for the financial year that just started (July 1st 2017), Managing Director Gerhard E. Blum assessed the upcoming months, "The economic trend in Europe is positive overall. The biggest factor of uncertainty from our point of view is caused by the Brexit negotiations." For the Asia-Pacific region, Blum expects the positive economic developments to continue. Signs of economic recovery in South America, particularly in Brazil, also contribute to the overall positive outlook.
