Preh Continues Record Growth in 2014
After strong performance last year, the company shows a robust increase in 2015.
Novi, MI, June 1, 2015 (Newswire.com) - Preh Inc., based in Novi, Mich. – a unit of German automotive supplier Preh GmbH of Bad Neustadt, Germany – maintained exceptionally strong growth in the past financial year. Sales of the parent group grew by 17.5% to $667 million (€611 million) in 2014, from $568 million (€520 million) in 2013. With these results, Preh is clearly above the industry average of 6.6%, according to an April 2015 study by Berylls Strategy Advisors. Earnings power also improved markedly: Preh achieved an operating result before interest and taxes (EBIT) of $59 million (€54.5 million) in 2014 which is equal to an increase of 31% over the prior year.
The fact is that the automotive electronics and automation solutions specialist’s strong investment in further development of its business areas and locations has again paid off. In addition, Preh’s high equity quota (more than 40%) with correspondingly low interest costs had a positive impact. Due to this very strong business development, the company created many new jobs in all locations. At the end of 2014, Preh employed roughly 4,200 employees in all locations. Including the takeover of IMA Automation in Amberg, Germany, this corresponds to an increase of roughly 22% (2013: 3,430 employees).
The partnership under the roof of the Joyson Group has evolved into a classical win-win situation for both sides.
Dr. Michael Roesnick, Preh President and CEO
Preh’s headquarters in Bad Neustadt profited markedly from the dynamic growth of the company: 100 new jobs were created there in the last financial year. The number of employees in Bad Neustadt increased by 7% and reached 1,534 at the end of 2014, compared with 1,434 in 2013.
The beginning of 2015 has also proceeded successfully: During the first quarter of 2015, Preh sales grew by 22% over that of the previous year. Looking forward, Preh management plans to continue this growth course with a further increase in profit-earning capacity.
Dr. Michael Roesnick, president and CEO of Preh, said, “During the years 2010 to 2014, we achieved an average annual sales growth of 15%. At the same time, the number of our employees worldwide increased by more than 70%. We currently employ some 4,570 staff. This confirms once again that our growth story has fully been realized with our Chinese partner Joyson. The partnership under the roof of the Joyson Group has evolved into a classical win-win situation for both sides.”
About Preh
Preh is a subsidiary of the Joyson Group in Ningbo, China, which has combined its automotive activities in the exchange-listed company Joyson Electronics. Within Joyson, Preh forms the corporate division Automotive Electronics.
As a global automotive supplier, Preh recorded sales of $667 million (€611 million) in 2014 with around 4,200 employees. The company has locations in Germany, Portugal, Romania, Mexico, the U.S.A. and China.
Preh’s development and manufacturing capabilities focus on climate and driver control systems for passenger and utility vehicles, electronic control units for the battery management of electrical vehicles, as well as assembly and automation systems.