The sensor company recorded a slight decline in sales of 2.9% to 1,700.2 million euros (2019: 1,750.7 million euros). At the same time, Sick significantly outperformed the sales development of the German mechanical engineering industry, which the German Engineering Federation (VDMA) forecast with production growth of minus 14% for 2020. Demand for sensor solutions remained high in the 2020 financial year, generating incoming orders of EUR 1,726.4 million (2019: EUR 1,774.1 million). The number of employees worldwide rose by 2.2% to 10,433 in the crisis year.

The course of the 2020 financial year was strongly influenced by the negative impact of the coronavirus pandemic on global economic development. After a significant decline in sales in the spring due to lockdowns in many countries and affected sectors, sales recovered in the second half of 2020. The sales trend exceeded the forecasts at the start of the pandemic and, together with cost discipline, ensured a satisfactory operating result. Forward-looking cost management contributed to a 5.8% increase in EBIT to EUR 140.6 million, which recorded a slight increase to 8.3% of sales (EBIT margin 2019: 7.6%). With the exception of consolidated revenue, the Sick Group achieved its forecast targets in the 2020 financial year. At 11.8% (2019: 11.5%), the company invested an even higher proportion of revenue in research and development and continued its innovation strategy unwaveringly.

"Despite the effects of the pandemic, we have achieved a stable result, which we owe above all to the special commitment of our employees. We countered the decline in orders in the first half of 2020 by quickly adjusting our costs and investments. At the same time, we focused on key future topics for the sensor-based digital transformation and expanded our technological lead in this area. Digitalization received a boost in 2020 and customers chose Sick as a partner on their path to automation and digital transformation," commented Dr. Robert Bauer, CEO of Sick AG, on the publication of the 2020 balance sheet figures.

High demand for sensor solutions for logistics automation

Demand for sensor products and applications developed very positively over the course of the year, with varying degrees of intensity in the business segments and particularly in the area of logistics automation. The Sick Group's broad industry positioning compensated for economic weaknesses in individual target industries and proved its worth in the crisis year. In addition, the company's international orientation made it possible to bridge lockdowns in individual regions and to maintain sales at approximately the previous year's level through sales activities in growth regions.

In the domestic market of Germany, the reluctance of companies to invest in factory automation had a particular impact on sales development, with sales falling 10.1% short of the previous year at EUR 283.9 million. The Europe, Middle East and Africa (EMEA) sales region was also heavily impacted by the effects of the coronavirus pandemic and fell short of the forecast with sales of 601.4 million euros.

The financial year was much more stable in North, Central and South America (Americas). At 387.3 million euros, sales growth amounted to 1.9% and was characterized in particular by high demand in the logistics automation sector in North America. Growth was also positive in the Asia-Pacific region, where sales increased by 4.3% to EUR 427.6 million. In China in particular, the sales trend gained significant momentum in the financial year.

Sensor solutions for the digital transformation

Sick was able to achieve an EBIT of 140.6 million euros, providing a stable basis for the still unpredictable economic development as well as for investments in future technologies and the company's innovative strength. The company maintained its high level of expenditure on research and development and invested 201.1 million euros in the development of sensor-based applications. The number of employees in research and development was increased to 1,367 as planned, helping to turn innovative ideas into marketable products.

With Sick AppSpace and Sick IntegrationSpace, Sick expanded its digital solution portfolio in 2020 and enables customers to easily integrate data vertically from the sensor to the cloud. There was also a strong focus on digital applications, for example to make the possibilities of artificial intelligence accessible to customers without programming knowledge.

With its entry into quantum sensor technology, Sick also tapped into a key technology for the future in the 2020 financial year. Together with the Trumpf subsidiary Q.Ant, Sick has developed the first industrial quantum sensor, which is to be used by pilot customers in the current financial year.

Increasing employment instead of short-time work

In the 2020 financial year, Sick recorded a slight increase in personnel of 2.2% to 10,433 employees worldwide. New employees were hired particularly in the operational production areas and customer-oriented fields such as research and development, sales and service. The number of trainees in the Group rose by 5.2% to 384 trainees and cooperative education students. The trainee ratio is set to remain stable in 2021 and around 70 new trainee positions are to be filled at Sick.

The coronavirus pandemic set the pace at the beginning of 2020 and posed challenges for the entire organization. The early establishment of a coronavirus task force in February 2020 and the high level of networking of global production and logistics capacities ensured the best possible protection of employees' health and the ability to deliver. Targeted efforts in inventory management increased storage costs but ensured the company's ability to deliver. A clear hygiene concept, mandatory masks and rapid tests for areas where presence is mandatory, such as production, logistics and service, are protecting Sick employees during the ongoing pandemic. Around 80 percent of employees are taking advantage of the opportunity to work remotely at Sick.

"Within a very short space of time, all employees who are able to work from home were provided with the necessary IT infrastructure. I am delighted that we have also used our agility and innovative strength for internal company purposes and quickly created a secure remote working environment. New digital processes and communication platforms enabled us to be available to our customers worldwide at all times and ensure our ability to deliver," said Markus Vatter, Member of the Management Board of Sick AG and responsible for Controlling, Finance and IT.

Sustainable corporate governance in the anniversary year 2021

In the 2020 financial year, Sick strategically anchored the topic of sustainability and adopted a new sustainability strategy that is in line with the relevant sustainability goals of the United Nations and places ecology at the center of all efforts. Commitment to the environment was already close to the heart of company founder Dr.-Ing. e. h. Erwin Sick, who developed the first flue gas density meter to reduce air pollution in 1956.

The 75th anniversary of the Sick company in the fall of 2021 will honor the pioneering achievements of
Dr.-Ing. e. h. Erwin Sick and trace the development of optoelectronics and automation through to the digital transformation. If the infection situation allows, the anniversary will be celebrated with Sick employees and companions from business, associations and politics in September.

The further forecast for the 2021 financial year is made considerably more difficult by the ongoing coronavirus pandemic and disruptive factors in the global economy. However, catch-up effects are expected in the coming years, which will already be reflected in encouraging incoming orders in the first quarter of 2021. In addition, the importance and development speed of digitalization, for which sensor solutions from Sick are essential, continues to increase. The stable annual financial statements and the company's high profitability and innovative strength are helping Sick to emerge stronger from the pandemic and take advantage of growth opportunities in existing and future markets.