Sennheiser Balance Sheet 2007: Another Record Result for the Audio Specialist



    WEDEMARK, Germany, July 1 /CNW/ - With sales up by 10.9 percent, audio
specialist Sennheiser has presented a positive balance for fiscal year 2007
and has once again achieved a record result. Total sales at the Sennheiser
Group amounted to EUR 395.3 million. With this result, Sennheiser electronic
GmbH & Co. KG is continuing the successful series of results of recent years.
Among the Sennheiser product segments, the top position was held by the
headphones segment, with total sales up by 19.7 percent to EUR 111.7 million.
    "We are very pleased to have completed fiscal year 2007 once again with
two-digit growth," said Volker Bartels, Speaker for the Executive Team and
President, Manufacturing and Logistics, at the balance sheet press conference.
Sennheiser Group sales increased by 10.9 percent compared to 2006 to a total
of EUR 395.3 million. In the same period, earnings rose by 19.8 percent from
EUR 16.9 million to EUR 20.2 million. "All Sennheiser markets worldwide have
developed positively. In particular, the systematic expansion of our
international sales network and the opening up of further markets have
contributed to the good annual result," Bartels continued. The positive
development was also reflected in the growing workforce: in 2007, the number
of employees rose by 6.7 percent to an average of 1,976 employees worldwide.
Of these, 1,099 work in Germany.

    Increased sales in all product segments

    All segments of the Sennheiser Group contributed to the successful annual
result. The front-runner was the headphones segment, which saw a 19.7 percent
increase in sales. With total sales of EUR 111.7 million, this product segment
accounted for the largest share (28.3 percent) of Sennheiser Group sales.
"This excellent result was positively influenced by continued growth in the
consumer electronics sector and the worldwide market development in mobile
music," Bartels explained. "The wireless technology product segment also
recorded continuous growth rates." As the second-strongest segment, with sales
of EUR 102.9 million, wireless microphones achieved an increase of 9.2 percent
compared to the previous year.
    The next-largest percentage of total sales was achieved by wired
micro-phones, with sales of EUR 37.5 million, followed by conference
technology (EUR 27.6 million), audiology (EUR 25.0 million) and aviation
(EUR 8.7 million). Sennheiser Group sales in the segment of telecommunications
products generated by the Sennheiser Communications joint venture rose by an
impressive 22.4 percent to EUR 26.3 miilion. The product segments of Georg
Neumann and Klein + Hummel contributed sales of EUR 17.6 million and
EUR 2.7 million respectively to the overall result of the Sennheiser Group.

    Sennheiser markets: outstanding results worldwide

    All Sennheiser markets worldwide succeeded in recording positive results.
In spite of the weak dollar, the region of America increased sales by
2.0 percent to EUR 104.5 million, thus remaining Sennheiser's strongest region
overall. After adjustment for currency effects, this even represented an
increase of 10.3 percent. The leading growth market was once again the region
of Northern and Eastern Europe, which recorded a 26.0 percent rise in sales
amounting to EUR 79.8 million. The region benefited from the expansion of
Sennheiser sales structures in the Scandinavian area and in Russia. The region
of Western and Southern Europe and Africa also enjoyed above-average growth of
11.5 percent, recording sales of EUR 95.6 million at the end of the year. In
Central Europe, sales went up by 6.8 percent to a total of EUR 77.7 million
last year. This was followed by the region of Asia and Australia with
EUR 37.8 million, equivalent to a rise of 16.8 percent. Overall, 83.3 percent
of total sales were generated outside Germany. In 2007, the worldwide sales
network was expanded by the addition of the subsidiary Sennheiser Electronics
India Pvt. Ltd. 2008 saw the opening of Sennheiser Japan K.K., and a sales
subsidiary was founded in China at the end of March.

    Production and Logistics

    Output from the Sennheiser production sites amounted to
EUR 150.4 million, up by 2.2 percent over the previous year. Further
improvements in materials management and the supply chain ensured even higher
profitabililty at the plants in Germany, Ireland and the USA. "We were also
able to implement activities in the field of 'lean manufacturing' at all
production locations. At the German sites of Wennebostel and Burgdorf in
particular, major success was achieved by our programme to improve efficiency
and flexibility," Bartels reported. In the field of quality assurance,
Sennheiser introduced a new data acquisition and analysis system aimed at
further improving the high quality standard that is one of Sennheiser's key
success factors. The subsidiary Sennheiser Logistics Services GmbH was founded
in 2007 with the objective of optimising and streamlining logistical
processes. The Research and Development division was further expanded, with
the number of employees rising from 173 in 2006 to 206 developers in 2007.
Further new jobs in the fields of research & development as well as
engineering are also planned for the coming year. Overall, expenditure on
research and development in 2007 amounted to EUR 24.9 million, equivalent to
6.3 percent of total sales.

    Good prospects for 2008

    The first six months of 2008 have also been positive for Sennheiser. "We
are expecting further growth from expansion in the Asian market, in particular
due to the foundation of our subsidiaries in Japan and China," said Bartels.
At the same time, Sennheiser sees further development potential in Europe. And
the company is equally positive about its future at the Sennheiser
headquarters in Wennebostel. "We plan to consolidate our production capacities
at the site by building a new manufacturing and technology centre in the
second half of 2008," Bartels continued. The Burgdorf site will then be
integrated into the manufacturing facilities in Wennebostel in 2009, thus
further improving efficiency due to shorter transport and information
distances. What is more, the close proximity to the development facilities
will bring significant advantages in ramping up production of new products.

    The Sennheiser Group, with its headquarters in Wedemark near Hanover,
Germany, is one of the world's leading manufacturers of microphones,
headphones and wireless transmission systems. The family-owned company, which
was established in 1945, recorded sales of over EUR 395 million in 2007, 83%
of which were generated abroad. Sennheiser employs almost 2,000 people
worldwide, around 55% of whom are in Germany. Sennheiser has manufacturing
plants in Germany, Ireland and the USA and is represented worldwide by
subsidiaries in France, Great Britain, Belgium, the Netherlands, Germany,
Denmark (Nordic), Russia, Hong Kong, India, Singapore, Japan, China, Canada,
Mexico and the USA, as well as by long-term trading partners in many other
countries. Also part of the Sennheiser Group are Georg Neumann GmbH, Berlin
(studio microphones), K + H Vertriebs- und Entwicklungsgesellschaft mbH
(Klein + Hummel studio monitors, installed sound) and the joint venture
Sennheiser Communications A/S (headsets for PCs, offices and call centres).
    You can find all the latest information on Sennheiser by visiting our
website at http://www.sennheiser.com or by contacting:

    Sennheiser electronic GmbH & Co. KG
    Edelgard Marquardt
    Am Labor 1 - 30900 Wedemark
    Tel: +49-5130-600-329
    Fax: +49-5130-600-295
    e-Mail: edelgard.marquardt@sennheiser.com





For further information:

For further information: Sennheiser electronic GmbH & Co. KG, Edelgard
Marquardt, Am Labor 1 - 30900 Wedemark, Tel: +49-5130-600-329, Fax:
+49-5130-600-295, e-Mail: edelgard.marquardt@sennheiser.com

Organization Profile

SENNHEISER ELECTRONIC

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890