HARTING Technology Group

24. November 2006

Focus on Pioneering Technology

The passive transponder HARfid LT 86 (HT) won the Hermes Award 2006. Using 3D-MID techniques, HARTING Mitronics can now develop directional antennas with integrated RFID chips, for applications in harsh industrial environments.

Now for the first time ever, HARTING’s SmartCon Ethernet switches provide the user with more than 100 configuration options. The products were applied e. g. in the factory automation.

The HARTING technology group defines new standards for automation and cabling in line structure with the Han® PushPull.

HARTING generated sales of EUR 313 million worldwide and thereby realized a 17.2% increase compared with the previous year (prior year: EUR 267 million).

HARTING posts double-digit growth

The HARTING Technology Group headquartered in Espelkamp, in Eastern Westphalia, concluded its financial year 2005/2006 at the end of September 2006 (target date: September 30, 2006). HARTING generated sales of EUR 313 million worldwide and thereby realized a 17.2% increase compared with the previous year (prior year: EUR 267 million).

A clear decline in the business with tobacco goods vending systems resulted in lower sales last year. However, thanks to the resolute reorientation of the HARTING Technology Group the company was able to more than compensate this drop in sales. With the company's focus on the market segment of connectivity and networks, where the principal emphases are placed on industry, telecommunications and medical technology, the groundwork was laid for the future.

The transportation business area remains one of the chief markets for HARTING. The Association of European Railway Industries (UNIFE) developed an international quality standard that combines the widespread general quality requirements of quality standard ISO 9001 with the additional requirements of the railway industry. In May of the year 2006 HARTING ranked as the first company worldwide to receive the new IRIS quality certificate (International Railway Industry Standard) of this new international quality standard. The new standard is recognized by all major railway manufacturers and currently places the strictest quality requirements on supplier companies to date. “The IRIS certificate proves that HARTING develops and produces connector solutions for the railway industry at the very highest level. Our focus consists in satisfying all customer requirements and expectations all the way through to the end user”, explains Dietmar Harting.

Drawing on decades of experience in electronic connector technologies, the company is successively developing new fields of business and, for example, is already offering a complete range of infrastructure products and services for industrial Ethernet applications in the areas of industrial communications and energy networking. “The automation IT approach proves that all areas of a company can be integrated into a universal and convergent network – and this can be accomplished on the basis of Ethernet”, as Dietmar Harting emphasizes.

With the campaign entitled “One Face to the Customer”, HARTING decidedly changed its internal sales structure and adapted it to the changing conditions of the market. This conversion means that all HARTING products are marketed “from a single source”, thereby ensuring enhanced management and steering of customer contacts. In addition, HARTING is transforming itself into a supplier of systems providing customized solutions tailored to individual client requirements. The company advises customers in the development, or planning and design phase on all matters involving interconnection technology and networking. Apart from supplying the respective components, HARTING also develops and manufactures subsystems on request in order to enhance the customer’s value creation chain. These capabilities have also contributed to increased sales.

HARTING was able to consolidate its position as the leading innovative company on the market with its targeted integration of new technologies in all of the HARTING divisions. At this year's Hannover Messe the company was presented with the Hermes Award for the newly developed HARfid LT 86 passive RFID transponder. This transponder is used for RFID applications in transport and production logistics where conventional, foil-based RFID transponders or smart labels fail to meet the demands of harsh industrial environments.

HARTING has created new jobs both domestically and abroad in the financial year just elapsed. The number of persons employed worldwide rose by 14.4% to a total of 2,434 staff as of September 30, 2006. On an annual average, the number of persons employed rose by 14% to 2,382 members of staff. This figure includes temporary employees who have now been hired on a permanent basis at the plant in Sibiu, Romania. HARTING has met its responsibility as one of the most significant employers in the region with the creation of 64 jobs in Espelkamp and Minden.

Sales Development According to Regions

HARTING clearly increased its sales in all of the company’s sales regions. In Europe the HARTING Technologies Group was able to advance its sales from EUR 202 million to EUR 236 million and thereby clearly consolidate its position on the market. The excellent development of the company’s business with connectors, system components and solutions such as wiring and printed circuit board systems contributed decisively to these results. The fact that HARTING is now offering more integrated solutions as a supplier of entire systems has met with a positive response on the markets. Here, HARTING is clearly setting itself apart from competitors in a market shaped by keen competition, while expanding new fields of business in a targeted manner.

As planned, HARTING was able to continue its planned growth course on the markets outside of Europe, in particular in America and Asia. Posting a 35% increase in sales on the American market, HARTING was able to achieve particularly strong growth rates in the past financial year. On the strategic target markets throughout Asia, HARTING is especially emphasizing sales of its tried and tested industrial products. The particular focus on local conditions that HARTING has practiced in Asia has contributed towards the enhanced exploitation of local potentials and resulted in a further positive business trend in Asia. HARTING also advanced development of the local infrastructure in accordance with the importance that the company attaches to the Asian market. A new plant will be commissioned at the production location Zhuhai in the year 2007. The newly established subsidiary in India already began its operations in the year 2006.

The development of foreign markets represents a further strategic goal pursued by HARTING. The company has invested in its internationalization since 1979, and is currently maintaining subsidiaries in a total of 25 countries. The earnings situation of the financial year just elapsed is satisfactory and provides HARTING with the possibility of making further investments in the company’s development. Accordingly, the measures taken to secure the company’s future – which include the investments and expenditures for research and development – were ramped up by 20.5% compared with the previous year.

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