Media / Press Releases
Düsseldorf, 6 June 2003.
Vorwerk & Co. KG is satisfied with the way business developed in 2002. Business volume increased to 1,570 million euros in 2002, which is more than three per cent over the previous year's figure. The profit situation is also satisfactory. At 49 per cent, partners' equity was at approximately the same high level as in 2001. Vorwerk products are now obtainable in over 50 countries around the world. Some 46,400 people now work for Vorwerk worldwide - more than ever before. "Our company shows continued growth" is what managing partners, Dr. Jörg Mittelsten Scheid and Achim Schwanitz, announced today at the annual balance-sheet press conference in Düsseldorf.
The positive trend is due in large part to the outstanding success of the Vorwerk direct-sales companies in Spain, Italy and China, as well as to the growth of its subsidiaries HECTAS (facility-management services) and the akf group (financial services). Large-volume growth was once again reported by the Spanish direct-sales company and the Italian unit succeeded in achieving growth counter to market developments. Kobold Systems, China is the established Vorwerk company with the fastest growth. The trend towards greater comfort in the home is very much in evidence here. Vorwerk activities in China are focused mainly on the Beijing and Shanghai regions.
The launch in Germany of the new ironing system, Vorwerk Feelina, went very well indeed. Thanks to the superiority of the product and the party sales system, the Vorwerk Feelina enjoy great market acceptance. Lux Asia Pacific has firmly established its position as a profitable company within the Vorwerk group. The largest companies are situated in Japan, Indonesia and Thailand. A new sales company was opened in Vietnam in the reporting year.
Vorwerk Teppichwerke, the carpets division, was able to expand its market share in the drastically shrinking market for textile floor coverings, however its turnover and operating result are not satisfactory. The IT subsidiary, Zeda, suffered a loss in turnover due, in particular, to a fall in demand from the Vorwerk group.
In 2002, Vorwerk embarked upon a strategic re-alignment. The Vorwerk group plans to continue growing and consolidating its position as the worldwide number one for the direct sales of high-quality household appliances. "Sales methods and services which actively cater to the customer's needs and wishes will offer great opportunities in the future, too, irrespective of economic fluctuations" said the two managing partners. In September 2002, new growth targets were set for each of the Vorwerk divisions. These are to be achieved within the next five years by means of internationalisation and the expansion of existing activities. Core competencies remain worldwide direct sales of high-quality household appliances as well as highly efficient services available, in principle, all around the globe.
Vorwerk expects to see ongoing growth in 2003 both in direct sales and in industrial services. Business developments in the first four months of the year substantiate this expectation. Accordingly, group turnover is growing at a rate of 5.7 per cent, with growth related to the direct-sales segment at 8 per cent. Overall, the service providers are also reporting growth, heading the field, the HECTAS group at 5.4 per cent.
As yet, it is impossible to estimate how the spread of SARS will affect business in Asia. "We are constantly receiving reports on the latest developments, but happily there are no cases of illness among staff or their families," said Dr Mittelsten Scheid and Mr Schwanitz. Up to now, the group has imposed no travel restrictions on management staff. Asian sales are additionally suffering from exchange-rate problems caused by the strong euro.
Vorwerk Expands its International Activities
Düsseldorf, 6 June 2003.
Vorwerk & Co. KG is satisfied with the way business developed in 2002. Business volume increased to 1,570 million euros in 2002, which is more than three per cent over the previous year's figure. The profit situation is also satisfactory. At 49 per cent, partners' equity was at approximately the same high level as in 2001. Vorwerk products are now obtainable in over 50 countries around the world. Some 46,400 people now work for Vorwerk worldwide - more than ever before. "Our company shows continued growth" is what managing partners, Dr. Jörg Mittelsten Scheid and Achim Schwanitz, announced today at the annual balance-sheet press conference in Düsseldorf.
The positive trend is due in large part to the outstanding success of the Vorwerk direct-sales companies in Spain, Italy and China, as well as to the growth of its subsidiaries HECTAS (facility-management services) and the akf group (financial services). Large-volume growth was once again reported by the Spanish direct-sales company and the Italian unit succeeded in achieving growth counter to market developments. Kobold Systems, China is the established Vorwerk company with the fastest growth. The trend towards greater comfort in the home is very much in evidence here. Vorwerk activities in China are focused mainly on the Beijing and Shanghai regions.
The launch in Germany of the new ironing system, Vorwerk Feelina, went very well indeed. Thanks to the superiority of the product and the party sales system, the Vorwerk Feelina enjoy great market acceptance. Lux Asia Pacific has firmly established its position as a profitable company within the Vorwerk group. The largest companies are situated in Japan, Indonesia and Thailand. A new sales company was opened in Vietnam in the reporting year.
Vorwerk Teppichwerke, the carpets division, was able to expand its market share in the drastically shrinking market for textile floor coverings, however its turnover and operating result are not satisfactory. The IT subsidiary, Zeda, suffered a loss in turnover due, in particular, to a fall in demand from the Vorwerk group.
In 2002, Vorwerk embarked upon a strategic re-alignment. The Vorwerk group plans to continue growing and consolidating its position as the worldwide number one for the direct sales of high-quality household appliances. "Sales methods and services which actively cater to the customer's needs and wishes will offer great opportunities in the future, too, irrespective of economic fluctuations" said the two managing partners. In September 2002, new growth targets were set for each of the Vorwerk divisions. These are to be achieved within the next five years by means of internationalisation and the expansion of existing activities. Core competencies remain worldwide direct sales of high-quality household appliances as well as highly efficient services available, in principle, all around the globe.
Vorwerk expects to see ongoing growth in 2003 both in direct sales and in industrial services. Business developments in the first four months of the year substantiate this expectation. Accordingly, group turnover is growing at a rate of 5.7 per cent, with growth related to the direct-sales segment at 8 per cent. Overall, the service providers are also reporting growth, heading the field, the HECTAS group at 5.4 per cent.
As yet, it is impossible to estimate how the spread of SARS will affect business in Asia. "We are constantly receiving reports on the latest developments, but happily there are no cases of illness among staff or their families," said Dr Mittelsten Scheid and Mr Schwanitz. Up to now, the group has imposed no travel restrictions on management staff. Asian sales are additionally suffering from exchange-rate problems caused by the strong euro.
