The EagleBurgmann Group, a successful industrial sealing technology supplier, faced major challenges in 2009. The worldwide recession and low price of oil had a significant impact on the group during the past fiscal year. The order intake level declined in the first quarter and that was followed by a decrease in turnover and earnings. Turnover fell by 9.6 % to 562.8 million Euros compared to 622.5 million Euros in 2008, and adjusted earnings were down by about 22 %. Exports accounted for 82.3% of the business, with domestic sales contributing the remaining 17.7%. The EagleBurgmann Group had 5,265 employees worldwide at the end of 2009.
In response to the business slowdown, a hiring freeze was introduced in Europe, and a global program was initiated to stimulate sales, reduce costs and improve management of working capital and liquidity. These efforts have produced tangible results. During FY 2009, the EagleBurgmann Group took advantage of opportunities resulting from the crisis to expand the business. In the US, the group acquired EJS Inc. of Santee, California, to strengthen its position in the expansion joint business.“Even when times are tough, we ensure that innovation continues to shape our future,“ said EagleBurgmann CEO Christoph Mosmann.
The outlook for 2010 will be another challenging year for EagleBurgmann. Compared to 2009, the order backlog was significantly lower at the start of the year, and as a result the Group will continue its policy of prudent management.