In April, Freudenberg reported its earnings in the 2014 financial year. The technology group reported record sales for the fifth year in succession on the basis of pro-rata consolidation of joint ventures, at €7,039.1 million ($7.6 billion) compared to €6,662.5 million ($7.2 billion) the previous year, representing growth of 6.3% over the previous year. Adjusted for the effects of acquisitions and disinvestments to the amount of €131 million ($140.8 million) and exchange rate effects, sales were 5.6% or €368 million ($395.5 million) higher than the previous year.

Sales rose in all business groups. Consolidated profit ran at €478.3 million ($514 million) compared to €401.5 million ($431.5 million) the year prior, mainly as a result of market success and innovative products. As of December 31, 2014, the Freudenberg Group employed 40,456 people (previous year: 39,897 people).

“Thanks to the enormous commitment and excellent performance of our more than 40,000 employees worldwide, Freudenberg achieved profitable and sustainable growth,” says Dr. Mohsen Sohi, CEO of the Freudenberg Group, at the annual press conference held in Weinheim in April. “We also progressed well with the strategic evolution of our company, made increases in productivity, strengthened our innovation capabilities, increased the transparency of our organization, and further expanded our world-wide presence and our broadly-diversified product portfolio.” The business figures are based on pro-rata consolidation (including the activities of the 50:50 joint ventures), which Freudenberg continues to use for the management of its operating activities.

Under IFRS financial reporting standards, 50:50 joint ventures are consolidated by the equity method. This means sales and employee figures are not taken into consideration. According to this method, sales in 2014 amounted to €5,982.3 million ($6.7 billion), €336.2 million ($377.3 million) higher than the previous year.

Profit from operations (EBIT) amounted to €563.4 million ($605.5 million) compared to €457.3 million ($491.5 million) in 2013. Consolidated profit totaled €477.8 million ($513.5 million) compared to €398.8 million ($428.6 million) the previous year, based on higher sales on the one hand and improved capacity utilization and productivity enhancement measures on the other hand.

According to the company, 2014 was a successful year for Freudenberg in many respects over and above financial performance. The Group launched an ambitious program of strategic projects and realigned its organizational structure to suit the future demands of the market.

Among them was Freudenberg Performance Materials, which began operating in January 2015. Combining Freudenberg Nonwovens and Freudenberg Politex Nonwovens brings many advantages. “The extended material expertise, the global positioning and leveraging economies of scale are just a few of the benefits of this new united path,” Sohi says.

Additionally, in August 2014, Freudenberg Nonwovens acquired the companies which operate the Hänsel brand interlinings business from Hänsel Textil GmbH, Iserlohn, Germany. This transaction brings Freudenberg the know-how and innovative technology it needs to expand its offering in the knit products segment in future.

Meanwhile, Freudenberg Filtration Technologies acquired the industrial activated carbon corrosion protection business of the American company MeadWestvaco Corporation. With this acquisition, Freudenberg can offer its global customers additional future-oriented filtration solutions for pollution-free air.

Furthermore, Freudenberg Performance Materials acquired Polymer Health Technology Limited, Ebbw Vale, U.K., a leading specialist of polyurethane foams for advanced wound care in January 2015, thus further expanding activities in the medical technology sector.