DORMA revenues surpass previous billion euro milestone

Major advancements both in pursuit of the DORMA 2020 vision and in restructuring as an integrated enterprise for access solutions and security technology

DORMA revenues surpass previous billion euro milestone

Ennepetal, Germany. In fiscal 2012/13, the DORMA Group surpassed the previous year’s record-breaking one billion euros in revenue by 3%, reaching some 1,032 million euros (previous year: 1,001.8 million euros). Acquisitions made during the reporting period contributed significantly to this growth in sales compared to the prior-year figure. The five acquisitions completed in Australia, Europe and North America added a total of 39.9 million euros to revenues generated. Earnings before tax (EBT) decreased from 76.6 million euros in fiscal 2011/12 to 57.6 million euros this time. This was due in particular to restructuring charges for the initiated consolidation of our production and logistics sites particularly in Europe and due to investments and exceptional expenses arising from our new brand identity as well as from the expansion of our presence in various foreign markets. The number of employees at the DORMA Group increased in fiscal 2012/13 to an average of 7,085 (+ 5.1%) for the twelve months.

“Given the weak level of business activity in Europe and the constraints and volatility of the global economy, this solid sales performance can be regarded as a positive development,” said Thomas P. Wagner, Group CEO and Chairman of the DORMA Executive Board, speaking at today’s annual press conference in Ennepetal. “Although our sales in Europe decreased as a result of the financial and economic crises, the very encouraging revenue increases in the Americas and Asia-Pacific came close to offsetting the decline,” Wagner went on to explain.

Americas and Asia-Pacific serve as sales drivers

Indeed, the largest increases in revenue in the fiscal year were generated by the regions Americas (+18.8%) and Asia-Pacific/Australia (+7.6%), together with the Movable Walls business unit serving the EMEA region (+15%). The Mediterranean/Middle East/Africa region posted a slight increase in sales of 1.5%. Taken together, Germany and the North and East Europe region experienced a decline in sales of –3.9%.

Despite the uncertain economic situation prevailing in some countries around the world and the ongoing euro crisis, DORMA invested 19.3 million euros (previous year: 22.4 million euros) in fixed and tangible assets for the optimization of its production facilities and in expanding its sales and distribution network during the reporting period.

Major progress in implementing the DORMA 2020 vision

Great advancements have been made with the company’s transformation, initiated with the “DORMA 2020” vision and growth strategy, into an integrated enterprise for access solutions and security technology. In the fiscal year, DORMA merged various product-focused companies in the USA, France and Australia that were operating side by side (e.g. in the fields of automatics, glass architectural hardware and door technology), creating one country company in each case. In these markets, DORMA is thus now able to offer its customers access solutions and services on a truly single-source basis.

“By simplifying and optimizing our structures and processes, we are taking major strides toward delivering on our claim and brand promise with each day that passes,” said Thomas P. Wagner. “As we have stated in and with our DORMA 2020 program, we want to be the trusted global partner for premium access solutions and services. Given the circumstances, we are more than satisfied with the progress and developments achieved in fiscal 2012/13 and the platform that we now have for further success and sustainable growth going forward,” the CEO continued.

The 2012/13 fiscal year also saw DORMA begin the process of merging production facilities (in France, Spain and Belgium) and of pooling of its logistics activities leading to their consolidation within Germany. Part of this process involves the construction of an advanced European doors factory in Zusmarshausen in southern Germany and a European logistics and spare parts center in Wuppertal near Düsseldorf to ensure a fast, reliable global supply service. In addition, DORMA’s HQ in Ennepetal is to be expanded as the Group’s technology and mechatronics competence center. In Germany, moreover, the previous product group-aligned distribution paths were reorganized last year into a sales and service organization focused on customer-aligned segments and distribution channels. The objective is to establish a global network of efficient, centralized production facilities with correspondingly high-performing logistics centers for each continental region (Americas, EMEA and Asia-Pacific).

Highlights of fiscal 2012/13

The advancements and successes already achieved on the road to DORMA 2020 are also illustrated by certain key statistics: around the world, DORMA is now represented in 255 of the top 600 cities and, in the year under review, doubled its coverage in China where it is now present in 27 cities. The company opened two Design Centers, one in New York and one in Dubai. At the beginning of 2013, DORMA launched its new brand identity at BAU, the biennial world leading trade fair for architecture, materials and systems in Munich. It also registered an increase of 20% in trade show contacts there compared to BAU 2011. In all, DORMA received seven awards, including the German Design Award for its Design Center concept, the Axia Award conferred by the business consultancy Deloitte for the company’s successful internationalization strategy, and the SME accolade “Hidden Champion” in the “Brand” category awarded by German news broadcaster n-tv.

Outlook: Focus on innovation and expansion of geographic presence

In this current fiscal year 2013/14, DORMA is continuing to work energetically on the implementation of the DORMA 2020 strategy, with the focus on optimizing its production and logistics footprints, expanding its presence in strategic markets, and launching new, innovative products and solutions.

In July, DORMA established a subsidiary in the Philippines. The market that exists in Manila, a megacity with 12 million inhabitants and huge growth potential, opens up to the company a particularly broad range of opportunities. In the first three months of the new fiscal year, DORMA made two further acquisitions, strengthening its presence in the USA and Italy respectively, and also expanding its portfolio in the maintenance and servicing segment. The two acquirees are Door Controls (USA) and Skill (Italy).

Delivering on the company’s claim and performance promise as a trusted partner for holistic access solutions is closely linked to innovations and the launch of new products. Over the last ten years, DORMA has registered in excess of 700 patents, of which 85 in the last fiscal year. In all, there are more than 160 products in development which DORMA intends to carry through to commercialization in the next few years. The company is planning to introduce new products in four waves coinciding with the trade shows Fensterbau [Windows, Doors, Façades], Security and presumably glasstec in the coming year and also the next BAU in Munich at the beginning of 2015.

One of DORMA’s latest developments was recognized on October 7 in Munich with the Iconic Award 2013 conferred by the German Design Council in the “Product” category. The XS Quattro product family – already at an advanced stage of development and due to be launched onto the market in the near future – encompasses a range of door fittings and electronic locking cylinders. DORMA further received two 2013 Iconic Awards recently for its integrated door closer ITS 96 FL and its branding campaign “From Excellence to Perfection.”

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