Blum witnesses an increased turnover of 50 million euros
Published on : Monday, August 13, 2018
Manufacturer of fittings, Blum, increased its turnover by 2.8 % in comparison to the previous year and recorded 1,839.42 million euros in turnover in the business year ended 30 June 2018. Growth amounted to 5 % adjusted for currency effects. Blum achieved 48 % of its turnover in the EU area and 15 % in the USA. The fittings specialist delivers its products to more than 120 countries all over the world and is represented internationally by 30 subsidiaries and representative offices. It has been decided that the third generation will take the helm of Julius Blum GmbH on July 1, 2019.
Employees are the basis of their success
“Our success is mainly due to the high performance of our team worldwide and the excellent collaboration between all our departments and organisations,” says Managing Director Gerhard E. Blum, underlining the importance of employees to Blum. On average, the fittings manufacturer employed 7,509 persons worldwide, which is a growth of 368 employees in comparison to the previous year. In addition, 94 new apprentices (15 of whom girls) will start a technical course of training with Blum Austria on 1 September. The Blum Group will provide vocational training to 361 apprentices (19 of whom at Blum USA) as of autumn.
Different market developments
Most markets in Western Europe achieved an increase in turnover in the 2017/2018 financial year. The company benefited from continued recovery in South European markets and recorded ongoing positive developments in Eastern Europe. The upswing of the Russian market was very pleasing. The strength of the euro had a negative impact on sales in America, the Pacific region and in Asia over the last 12 months. This led to a decrease in turnover in North and South America, although the development was positive in the national currency. In Asia, above all in India, China and South East Asia, growth continued despite negative currency effects.
For Blum, the Eurocucina in Milan is a very important international trade show. It provides a yardstick to assess how well furniture manufacturers accept the company’s products. This year in Milan, customers displayed many new Blum products which the company had presented at trendsetting interzum in Cologne the previous year. These included Expando T, the unique fixing method for thin fronts of special materials which opens up completely new design horizons and the new Aventos HK top lift system. Customers also presented the multitude of differentiation options offered by Blum’s box systems. There is still a very strong trend towards handle-less designs which can be implemented with Blum’s wide range of motion technologies (both mechanical and electrical systems). All motion technologies are tailored optimally to every application. Blum again extended its offering of services in the last business year. In addition to products, services are an important part of Blum’s overall performance.
Forecast for the 2018/2019 business year
“We will approach the new business year with restrained optimism. There are many question marks and there is a great deal of uncertainty about future developments. On the one hand, the Brexit process in Europe has still not been clarified and it is uncertain what direction the EU should take. On the other hand, we are deeply concerned about growing national interests, e.g. the mutual imposition of tariffs and an escalation of economic sanctions,” says Gerhard E. Blum, providing a prudent forecast of the forthcoming financial year.