Harting is optimistic about 2025

"We have thus outperformed the market environment in a very challenging environment and confirmed our forecast," explained Philip Harting, CEO of the Harting Technology Group, at the annual press conference.

Thanks to the internationalization of Harting's business areas, the weak domestic business was somewhat offset. At EUR 155 million (-3%), sales in the Americas region were almost on a par with the same period of the previous year. The same applies to Asia, where the company achieved sales of EUR 240 million (-2%). In the EMEA region excluding Germany, sales fell by 9% to
323 million euros. In Germany itself, a significant drop in sales of 20% to 222 million euros was recorded.

Internationalization as the basis for further growth

"At EUR 69 million, Harting's investment volume in new products and technologies, automation, capacity expansion and digitalization is even higher than in the previous year," explained Philip Harting. "In doing so, we are also consistently driving forward our internationalization, which is necessary and the key to further growth on our way to becoming a global player for connector cable solutions. True to the motto: In the region for the region. Because Germany alone offers no opportunities for growth." Major investments include plant expansions in Poland, capacity expansions in Mexico and the USA as well as the opening of a new R&D office in Hanoi, Vietnam, to complement production in Vietnam, which will start in summer 2023.

The establishment of global headquarters in Switzerland, which was announced in the middle of the year, is a further step in the company's strategic development and internationalization with the aim of being globally competitive and regionally effective. In future, supra-regional top management positions that drive global management will be bundled in Switzerland. The new headquarters is scheduled to take up its function on October 1, 2025, the start of the new financial year.

Germany remains an important production and development location

"Even though the global headquarters will be located in Switzerland in the future, Espelkamp and the surrounding area will remain a central anchor point for Harting. Harting Stiftung & Co KG will continue to be based in Espelkamp. We will continue our projects, initiatives and our regional commitment," emphasized Philip Harting.

This is why Harting continued to invest heavily in digitalization, automation and decarbonization at its most important sites in Espelkamp and Rahden in Germany in the 2023/24 financial year, including around EUR 10 million in a biogas plant to supply production in Espelkamp with climate-neutral and self-sufficient energy.

In response to the global economic and competitive challenges, Harting had to review and realign the structure of its administrative areas in Germany this year. As announced, the announced job cuts in various areas, which include around 100 positions in Germany and other countries, will be implemented by the end of 2025 in as socially responsible a manner as possible and in close consultation with employee representatives.

Harting continues to focus on sustainability

Harting focuses on sustainability not only in its connectivity products, but also within the company itself. Harting has made considerable progress in decarbonization on the way to climate neutrality and has already achieved the targets for 2027 in 2024. By then, the Group aims to reduce_{CO2 emissions} worldwide by 60% and achieve climate neutrality by 2030. To this end, Harting once again invested in the development of bio-based,_CO2-reduced connectors and the production and use of green energy in the 2023/24 financial year. "Our goal is clear: we want to be climate-neutral in Scope 1 and 2 by 2030," explains Philip Harting.

Sales forecast for financial year 2024/25

The business climate in the German electrical and digital industry has recently fallen further. Both the assessment of the current business situation and general business expectations fell compared to the previous months. Only 7% of companies in the ZVEI industry association expect business to pick up over the next 6 months. The majority of companies expect activities to remain the same and a third expect them to decline.

In view of the increase in incoming orders, however, the Harting Technology Group expects to exceed the billion-euro turnover mark again in 2025 and achieve growth of between 6% and 9%. "Even though we are currently in uncertain times, I am still optimistic about the future," explains Philip Harting. "However, the general conditions for our business remain challenging. We are therefore keeping a close eye on market developments so that we can react quickly if necessary."