G&D reports ‘healthy start’ to 2015

22/04/15

Giesecke & Devrient (G&D) has reported that sales increased by 4.5 percent to 1.83 billion euros (US$1.96 billion) in 2014 and that group earnings were slightly above at 62 million euros – in 2013 these were 56.2 million euros.

The firm added that the growth came although 2014 was a year of restructuring, during which important strategic decisions were made.

G&D added, however, that all three business units – Banknote, Mobile Security and Government Solutions – fell short of their earning targets.

Restructuring expenses amounted to 74 million euros, and group earnings after restructuring were at minus 12 million euros - meaning the net loss for the year amounted to 73 million euros.

"This performance can be attributed above all to increasing competitive and pricing pressure in all markets relevant to G&D, “ said Dr. Walter Schlebusch, Chairman of the Management Board of Giesecke & Devrient.

“The countermeasures implemented so far had been insufficient. Last year we therefore launched an extensive cost reduction program amounting to 100 million euros, with which we will strengthen our profitability for the long term. In addition, we have undertaken structural changes at the company to enable us to better adapt to market and customer demands in future."

Measures have been taken to strengthen all three business units for the future, including reorganization of the Mobile Security and Banknote business units, and the operational realignment of the Government Solutions business unit.

"With the launch of Veridos GmbH – a joint venture by the Government division and Germany's federal mint, the Bundesdruckerei – we are pooling our international activities, giving us good opportunities for growth," commented Schlebusch on the joint venture, which became operational on January 1, 2015.

"Despite the current challenges, we are on the right track. Together with the cost reduction program and structural changes, which we have undertaken with a view to the future, the current order situation, the growth markets in Asia and North America, and increasing sales prospects in future segments promise a positive outlook for G&D," continued Schlebusch.

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