Acquisitions connect TKH to growth

In 2019, TKH Group saw its turnover increase by 2 percent to 1,489.6 million euros. Acquisitions contributed 4 percent to the growth, which means that organically, there was a 2 percent decline. Net profit rose 5 percent to 113.9 million. TKH’s Building Solutions and Telecom Solutions branches performed better, Industrial Solutions did worse due to market conditions. The total number of employees dropped 8 percent to 5,980 FTEs at year-end 2019, mainly because of divestments.

The Building Solutions branch, consisting of the subsegments for vision & security systems and connectivity systems, saw its turnover rise by 6 percent to 745.0 million euros. With acquisitions contributing 8 percent to the growth, however, organic results declined by 3 percent. Telecom Solutions brought in 200.5 million from fiber network systems and indoor telecom & copper networks – a 3 percent year-over-year rise.

At the Industrial Solutions branch, which supplies production systems and connectivity systems, turnover amounted to 544.2 million euros, a 3 percent YOY decline. Within the subsegment of manufacturing systems, VMI reported stable sales for its tire building machines. There was reluctance among the top-five tire manufacturers due to negative developments in the automotive industry. Nevertheless, the order book was higher at year-end 2019 than a year earlier.