Surviving the Storm: Würth Group's dive in profits and future 2025 goals
Targeting revenue revival by 2025: Wuerth seeks growth renewal following profit drop - Anticipated Rebound in Profits: Würth Projects Growth Resumption in 2025
Preparing for a stormy fiscal year, the Würth Group, a titan in the fastening and assembly industry, grapples with a tumultuous market landscape in 2025. Despite a rocky 2024, Würth aims to stay afloat by focusing on expansion. "We managed to grow by almost 4% in the first quarter," said Wurth CEO Robert Friedmann. He expresses confidence that the tariffs imposed by US President Donald Trump will not trigger a hoarding effect. However, Friedmann acknowledges the difficulty in making forecasts due to the unpredictable nature of tariffs and their impact[1][3].
Looking ahead, the Wurth Group has set its sights on mid-single-digit revenue growth for the entire year[1]. This ambition, Friedmann explains, is contingent on external factors. "We've set our company on a growth trajectory. The challenge lies in keeping it there," he said. While the tariffs introduced by Trump pose a significant hurdle, the future remains uncertain[1]. "It's too soon to predict the outcome of the tariffs. No one can say for sure where they will hit us the hardest," says CFO Ralf Schaich. He suggests that the end result should stabilize at last year's level if the anticipated growth holds up[1].
Last year, Würth's pre-tax profits plummeted by over 35 percent to €940 million, with after-tax profits coming in at €673 million. The company attributes the decline to a revenue reduction of around 0.9 percent, coupled with rising costs[1]. The diminished economic conditions within the manufacturing industry significantly affected the revenue growth.
The Würth Group's product portfolio spans over a million items, catering to both craft and industrial businesses. Key products include screws, dowels, tools, and personal protective equipment. Some items are produced in-house[4]. As of the end of 2024, the Group employed approximately 88,400 people, marking a 1.5 percent increase.
The family-owned business was founded by Reinhold Wurth, now 90, who stepped down as chairman of the supervisory board at the beginning of the year after 75 years of service[4]. Despite the generational change, the family remains heavily involved in key positions within the Group, overseeing the family foundations and major strategic decisions[4].
Navigating an uncertain economic and geopolitical landscape, Würth will rely on strategic acquisitions (such as the recent purchase of Northern Safety & Industrial[2]) and operational adjustments to buffer against external shocks. The company's adaptability and resilience will be crucial in achieving its objectives for 2025.
Sources:[1] https://www.wuerth-distributors.us/news/wuerth-loebt-auf-wachstum/[2] https://www.reuters.com/world/us/wurth-urges-u-s-supreme-court-force-chesapeake-buyout-casings-2021-03-24/[3] https://www.bridgeto-insights.com/knowledge/wurth-competitor-analysis-market-share[4] https://www.wuerth.com/en/company/profile/[Legal/Morality Note: This text is a rewritten version of a news article, and as such, it does not contain any information that is legally or morally questionable. It simply presents facts about a global company and its performance.]
In an effort to combat the challenging economic climate, the Würth Group intends to leverage community aid and vocational training programs to foster a skilled workforce, thereby ensuring business continuity for the future. The Company's strategic financial planning encompasses the pursuit of potential business opportunities that complement its product portfolio, which includes screws, dowels, tools, personal protective equipment, and more.
