Germany-based Eberspaecher, a supplier of vehicle heaters and air conditioners and exhaust systems, reported on Tuesday that it had revenue of more than 4.9 billion euros, or $5.4 billion, in 2019. The company’s income was 58 million euros, or $68 million.
The company said that positive developments on the Chinese market and at its technology plants in Portugal and Romania were pluses for the year, but it added that due to the effects the coronavirus pandemic is having on the global economy and the automotive industry, it expects to see a fall in revenue and earnings for the current year.
“We can be pleased with our performance last year,” said Martin Peters, managing partner of the Eberspaecher Group. “We managed to secure major orders from key clients and simultaneously successfully expanded our global production network.”
Last year, the company invested in expanding its production capacity, including in China, India and Mexico, and recorded its highest-ever level of capital expenditure (149 million euros, or $164 million).
“We specifically invested in our international plants as we are experiencing global growth in our business areas – with products designed to achieve clean mobility for the future,” Peters said.
The fact that Eberspaecher is broadening itself internationally is reflected in its revenue, nearly 80 percent of which came from outside of Europe.
However, going forward, Peters acknowledges the disruption caused by the global pandemic.
“We cannot yet put an exact figure on the economic consequences for 2020 but can only assume that there will be a significant fall in revenue,” he said.
The company notes that like any in the supplier industry, Eberspaecher has for weeks been affected by global production shutdowns and the very slow and cautious restart by vehicle manufacturers. The sales markets in Europe and America took a huge hit in March and practically seized up altogether in April.
The company has also had to spend a great deal of time and expense at its factories around the world making sure workplace safety procedures are put into place, as the health of its employees is a top priority, the company said.
