Currency Fluctuations Negatively Impact SCHOTT’s Results in 2017-2018 Fiscal Year
Adjusted for strong currency effects, SCHOTT’s sales growth in the 2017-2018 fiscal year was 6.3%.
SCHOTT recently announced its financial results for the 2017-2018 fiscal year (October 1, 2017-September 30, 2018). The U.S. dollar, Turkish lira and Brazilian real, in particular, ensured that group sales of nearly €2.1 billion (approximately $2.4 billion) in nominal terms were only slightly above the previous year’s level. Adjusted for strong currency effects, sales growth was 6.3%. The main growth drivers included syringes made of glass and polymer, pharmaceutical glass for pharmaceutical packaging, components made of ZERODUR® glass-ceramic for astronomy and for the lithography of display glass surfaces, and CERAN® glass-ceramic cooktop panels.
The foreign share of sales remained unchanged at 86% for the 2017-2018 fiscal year. The number of employees increased to 15,485. Investments in property, plant and equipment amounted to €185 million (~ $211 million); more than half was invested in German sites. The largest foreign investment was the expansion of production capacity for pharmaceutical packaging at the St. Gallen site in Switzerland.
“We are very satisfied with the past fiscal year,” said Frank Heinricht, chairman of the board of management. “Despite unfavorable currency influences, we achieved the targets we had set ourselves, especially in terms of profitability.” SCHOTT reportedly achieved record net profit of €208 million (~ $238 million) for the fiscal year.
SCHOTT reports that it intends to continue its course of sustainable, profitable growth in the current fiscal year. In a stable environment, the company expects sales to increase by 3‑6% and earnings to remain at a high level. Investments in property, plant and equipment are also expected to increase sharply, to around €300 million (~ $343 million). The focus will be on expanding capacity for polymer syringes at the St. Gallen, Switzerland, and Müllheim, Germany, sites, as well as for pharmaceutical glass in an existing plant in India and the construction of a new plant in China.
For additional details, visit www.schott.com.