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ePaper created 2015-05-06, 08:22:31 | version 1.38.0
25HERAEUS | FINANCIAL REPORT 2014 | GROUP MANAGEMENT REPORT Sensors business group Heraeus Electro-Nite The Sensors business group (Heraeus Electro-Nite) is the world market leader in sensor and measurement systems for the steel, aluminum, and foundry industries. As a recognized specialist in measurements for molten steel, iron, and aluminum, the company produces and markets high-quality sensors from global manufacturing and sales facilities on every continent. In close cooperation with its customers, Heraeus Electro-Nite develops product solutions that contribute significantly to greater efficiency and higher quality in production processes, as well as improving working conditions and protecting the environment. Business performance In 2014, the Sensors business group generated revenue of €430.7 million, which, because of negative exchange rate effects, was only slightly above the previous year’s level (€426.4 million). Excluding the effects of exchange rate changes, the business group’s revenue growth was above the market average, which the World Steel Association (WSA) put at 1.2 percent. Global steel production grew at a faster rate in 2014 than 2013, although some regions were more buoyant than others. The molten metals business again had to contend with very low sales prices and weak margins. Prices for steel products therefore remained at a very low level in 2014, comparable with the historical lows of 2009. At the same time, production volumes rose worldwide, albeit with regional variations (lower growth in China and only moderate growth in other economies). The high level of global crude steel production continued to put sustained price pressures on steel manufacturers, a trend that was particularly noticeable in China. In 2014, the foundry industry, the second biggest sales market for the Sensors business group, again benefited from the upward trajectory of the automotive industry, its largest worldwide sales market. This was primarily driven by the recovery of the markets in Europe, North America, and China, though the latter was not able to reproduce its growth rates of recent years. The aluminum industry, the third major market for Heraeus sensors, performed well in 2014. Global production rose by 7 percent on the back of rising demand from the automotive industry. The acquisition of shares in the Chinese company MDC Sublance Probe Technology Shanghai Co., Ltd. at the beginning of the third quarter made an initial modest contribution to the business group’s performance in 2014, when adjusted for acquisition costs. Product revenue € million 2014 2013 2012 2011 2010 426.4 430.7 417.5 408.0 375.2