maxon Group reports record results for 2019

The maxon Group achieved a new sales record in the 2019 financial year, despite a noticeable economic slowdown worldwide. Cash flow fell to CHF 44.9 million (previous year 55.7 million), due to the resurgence of the Swiss franc against the euro, goodwill amortization at the UK company Parvalux, which was acquired in 2018, and the conversion of Group-wide IT to the new next-generation ERP solution. "In 2019, we again invested a lot of time and money to make maxon Group fit for the future," says Karl-Walter Braun, majority shareholder. "Due to the healthy financial situation, we have been able to make all investments from our own funds. We are continuously adapting the Group's organization to the new size of the company in order to be able to handle future growth," says Karl-Walter Braun.

Pilot project with federal certificate of proficiency

Compared to the previous year, the number of employees increased by 125 to 3,050. 15 apprentices successfully completed their training. Since 2018, maxon has also offered employees the opportunity to obtain a federal certificate of proficiency as an automatic assembler. "The vocational training class started in 2018 with eight female employees aged between 25 and 50, many with a migration background and family," says Karl-Walter Braun. The training program, which maxon launched together with the canton of Obwalden and in which more than 20 employees are now participating, is the first pilot project in this form in Switzerland.

Supplier of complete mechatronic drive systems

maxon has been investing a high single-digit percentage of sales in research and development for years. In 2019, investments amounted to over CHF 38 million. "Around 340 R&D employees ensure that we are constantly developing and innovating. We have long ceased to be a pure electric motor manufacturer, but are continuously developing into a supplier of complete mechatronic drive systems, consisting of precision electric motors, high-performance gearboxes and intelligent control electronics," says Eugen Elmiger, Board Delegate and CEO. The company benefits from the fact "that we can design and produce gearheads, electric motors and control electronics ourselves within the Group," says Elmiger. This has enabled maxon to act flexibly and quickly "to develop, manufacture and supply motors for respirators and linear drives for laboratory automation to evaluate corona tests," says Elmiger.

Mars rover with motors from the maxon Group

The sectors with the highest sales are medical technology and industrial automation and robotics. Other large markets are measurement and testing technology, aerospace and the automotive industry, where a major order for urea injection in trucks (AdBlue Technology) has had a positive impact. In international space programs, maxon is an important partner. This summer, for example, the next NASA rover will be launched to Mars - equipped with 16 maxon motors.

Globally active and broadly positioned

Following the rapid growth of more than 15 % in 2018, sales in Sachseln declined slightly, as expected. The headcount rose to 1,316, with most of the increase taking place in the indirectly productive area in order to cope with the increased organizational effort and complexity within the Group. For Sexau/D, 2019 was the most successful year in its history. Sales increased to EUR 80.9 million, with a slight decrease in the number of employees. In Hungary, sales increased by a good quarter to over CHF 25 million. Around 500 people are now employed in Veszprém/HU. In South Korea, sales rose by around 35 % to just under CHF 40 million. In Taunton/USA, two engine lines went into operation during the year. Various major US customers in regulated markets such as medical technology have already given their consent for their products to be manufactured or finished in Taunton/USA in the future. Parvalux in Bournemouth/UK generated sales of CHF 25.8 million in its first year at maxon with around 180 employees. With Parvalux products, the maxon Group is taking an important step towards becoming a complete system supplier of small and micro motors up to geared motors of up to 1.5 kW. Meanwhile, a new manufacturing and administration building is being built in Lyon/F.

Somewhat gloomier outlook for 2020

The maxon Group is globally active and broadly positioned in the markets and has a solid foundation to be able to maintain its position as a global market leader in the future. Order intake for the second half of 2020, except for medical technology products, is still weak, says Eugen Elmiger. "We therefore currently anticipate a sales reduction of around ten percent compared to the record year 2019."

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