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ePaper created 2015-05-06, 08:22:31 | version 1.38.0
17HERAEUS | FINANCIAL REPORT 2014 | GROUP MANAGEMENT REPORT Financial position and financial performance Overall, the Heraeus Group reported a fall in revenue and earnings for the 2014 financial year. Whereas operating profit remained roughly at the previous year’s level, earnings before interest and tax (EBIT) suffered a setback because of effects related to measurement on the balance sheet date caused by the weak euro. The Group’s net income was significantly down on 2013, primarily because that year’s figure had still included the gain on the disposal of the Dental business group. Product revenue, at €3.4 billion, fell by 6.2 percent year on year. Adjusted for the effects of precious metal prices 1) , revenue was on a par with the previous year (down by 0.3 percent). The Heraeus Group’s steady progress was based on its strong position in a large number of highly specialized global markets, its continued ability to inno- vate, and its financial structure, which remained extremely robust. However, its performance in 2014 was adversely affected by factors such as ongoing uncertainty about the economic situation in the USA and eurozone, and the muted demand from the electronics and semiconductor industries. In terms of product revenue, Asia remained the highest earning region, accounting for 50.4 percent of total rev- enue, despite a year-on-year fall of 7.0 percent. Product revenue also fell in Europe, by 6.9 percent on 2013. Revenue generated in the Americas remained virtually unchanged (down by 1.4 percent). Although demand stabilized in the photovoltaics market and went up in the medical components market, the Precious Metals business group suffered a fall in prod- uct revenue (down by 5.7 percent), largely as a result of movements in precious metals prices. Adjusted for these effects, revenue was on a par with the previous year (up by 0.3 percent). The Materials Technology business group reported a significant decline in revenue compared with 2013 (down by 12.7 percent), mainly due to weak demand from the electronics and semiconductor indus- tries. Adjusted for the effects of precious metal prices, the fall in revenue was 6.2 percent. The Sensors business group again generated a small year-on-year rise in revenue, which was up by 1.0 percent, largely because of consis- tently strong demand in Asia. A 9.8 percent increase in the revenue generated by the Biomaterials and Medical Products business group made another encouragingly positive contribution to the Group’s performance. For the Quartz Glass business group, further strong demand in the telecommunications market compensated for muted demand from the semiconductor industry and helped rev- enue to remain at the previous year’s level (up by 0.3 per- cent). Despite weak demand for UV system solutions, revenue generated by the Specialty Light Sources business group matched the 2013 result (down by 0.2 percent). 1) Product revenue adjusted for the effects of precious metal prices means product revenue excluding the share of revenue attributable to precious metals