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| Sennheisers Growth Bucks the Trend |
In spite of a difficult market situation throughout the world, the Sennheiser Group consolidated and further expanded its worldwide position on the market last year. Consolidated sales grew by 12.3 % to EUR 227.4 million. The areas experiencing the strongest growth are wireless microphones for the music industry and headphones for consumer electronics.
Dr. Heinrich Esser, President Manufacturing; Volker Bartels, President Research and Development; Rolf Meyer, President Marketing and Sales (from left to right)
The growth in sales, particularly on the US market, far exceeded expectations. The profit of the Sennheiser Group rose by almost 5 % in 2001 to EUR 12 million. This success was based above all on the introduction of the “evolution wireless” series of RF wireless microphones in 2000 and the new SK 5012 bodypack transmitter – two Sennheiser innovations which had a major influence on the company’s results in the 2001 financial year.
“New products and efficient marketing ensured that we once again succeeded in achieving a strong increase in sales last year in almost all regions and product areas, in spite of the fact that the overall market shrank slightly”, said Rolf Meyer, President Marketing and Sales, at the presentation of the balance sheet of the Sennheiser Group in Wedemark on June 17, 2002. “This underlines Sennheiser’s role as the leading supplier of electroacoustic systems on the world market.”
Two-Figure Growth Overseas
With an increase in sales of 26.4 % to EUR 67.2 million, America developed into the company’s most dynamic market last year. It overtook for the first time Western/Southern Europe and Africa, previously the Sennheiser Group’s largest business region, where sales grew by 6.1 % to EUR 62.2 million. Business in Asia and Australia also experienced above-average growth, with a rise of 19.1 % to EUR 19.6 million. The total export share is 82 %.
Sennheiser also succeeded in increasing its market shares on the domestic market. The company’s market share for headphones and infrared systems in Germany rose by 3 % to almost 30 %. In the whole Central European market, however, sales volume fell slightly by 2.4 % to EUR 45.2 million. Sennheiser has already reacted to this development, which is due to the weak economy, by strengthening its sales activities through the merger of Sennheiser Vertrieb GmbH with the sales partners Gerdes Elektronik in Magdeburg and Diekhöner Kommunikationssysteme KG in Osnabrück on July 1, 2002. “The new company, Sennheiser Vertrieb und Service GmbH & Co. KG, will consolidate our forces, creating much more efficient structures that will put us in a position to serve the highly demanding German market even better than before”, said Meyer, describing this initiative.
Football and Rain Forests, Pop Stars and The Lion King
Wireless transmission technologies for headphones and microphones from Sennheiser continued their triumphant progress through the music industry and consumer electronics last year. Evidence could be found in attractions like the hit musical “The Lion King” in Hamburg and the “Regenwaldhaus” (Rain Forest House) in Hanover, as well as the Eurovision Song Contest in Estonia and the soccer world cup in Japan and Korea. Both artists and event organizers put their faith in professional audio systems from Sennheiser.
One of last year’s highlights was the world’s first installation of Sennheiser’s new GuidePort system in the Rain Forest House in Hanover. “In developing GuidePort, which is based on digital radio frequency technology, we have succeeded in producing a completely new, intelligent system in the market for museum visitor guidance systems, and it is already being successfully used in several countries”, said Volker Bartels, President Research & Development. Equally spectacular was the launch of the new SK 5012, the world’s smallest
professional bodypack transmitter. This Sennheiser product celebrated its premiere last year on stage in the musical “The Lion King” in Hamburg.
More and more stars in the music industry are using wireless microphones from Sennheiser. Last year, this sector developed into the strongest business area of the Sennheiser Group, with a 31.3 % share of total sales. Cabled microphones made up 14.7 % of overall sales, while headphones, at 16.8 %, were the second largest sales group. “We have continued to expand our cooperation with top international artists”, said Meyer. “Whether it be Madonna or Sting, Sasha or No Angels – they all rely on the sound and service offered by Sennheiser.”
Increase in the Efficiency of Production Sites
In 2001, Sennheiser doubled the floor space for production and offices at its Tullamore factory in Ireland by purchasing a new factory building. Sennheiser concentrates the production of headphones at this site. “The new building is the basis for the optimization of all logistic processes, the introduction of team working and thus a substantial increase in the efficiency of this production plant”, said Dr. Heinrich Esser, President Manufacturing. Since April 2001, the Sennheiser plant in Albuquerque, New Mexico, has been producing “evolution wireless” microphones for the American market. A stable price and the improved market availability above all of electronic components meant that the procurement situation in the 2001 financial year was unproblematic for Sennheiser.
Greater Networking of Research and Development
The Sennheiser Group is focusing its researchactivities on the further development of analog and digital RF transmission technology. “Our SK 5012 miniature transmitter for the stage and our Set 800 transmission system for domestic use have set new standards”, said Volker Bartels, President Research & Development. Altogether, the Group invested a total of EUR 11.8 million in this area, which also led to increased recruitment. Furthermore, the introduction of a new project management system resulted in considerable improvements in the networking of internal and external development functions. The revised process enables a much faster transfer of knowledge between the company’s research and development departments.
New Jobs and New Investment Secure Further Growth
In 2001, the Sennheiser Group had an average workforce of 1,418 employees, corresponding to an increase of 10.7 %. 61 % of the employees work at the sites in Burgdorf, Wennebostel, Hanover and Berlin. Sennheiser recruited a total of 137 new employees and apprentices last year, and vacancies were filled especially in the areas of research and development. Labor costs increased by 14.2 % compared to the previous year. Investment in tangible and intangible assets amounted to EUR 11.6 million. One area of focus was the introduction of a new Enterprise Resource Planning (ERP) system, which is to be used in all of the Group’s companies.
“In a society that is changing on a global scale, the importance of cultural exchange and communication increases. As one of the world’s leading suppliers of electroacoustic systems, we look to the future with optimism. Our advanced technology, our marketing and our support for artists of every kind ensure that we stay in close contact with the growth areas of the modern leisure society throughout the world”, said Rolf Meyer, describing the company’s future prospects.
For further information about Sennheiser please visit us on the Internet at
http://www.sennheiser.com/ or contact:
Sennheiser electronic GmbH & Co. KG
Press and PR • Edelgard Marquardt
Am Labor 1 • 30900 Wedemark • Germany
Tel.: +49-5130-600-329
Fax: +49-5130-600-295
E-mail: marquare@sennheiser.com
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