Unstoppable Wurth: Refusing to Stagnate Amidst Economic Struggles
Pursuing profit growth by 2025: Wüрth's strategic plan - Posting a resurgence in earnings: Würth plans to regain growth in 2025
Wurth, the gargantuan trading conglomerate, defiantly clings to aspirations of escalating business activities this year. "We smashed through the barricades by a whopping 4% in the initial quarter," boasted Wurth's supreme CEO, Robert Friedmann. Friedmann dismisses any hint of a "hoarding effect" from US President Donald Trump's tariffs, deeming them an inconsequential blip. The Wurth Group, nestled in Künzelsau's embrace in northeastern Baden-Württemberg, promises mid-single-digit revenue growth for the year ahead.
Friedmann emphasizes that the progress depends largely on external factors. "We've finally found our rhythm on the road to prosperity. Hell or high water, we'll hold onto it," he affirmatively stated. The Trump tariffs, he admits, constitute formidable hurdles to accurate prognostications. With the tariffs affecting broad sections of the economy like a wildfire, it's too early for anyone to divine the ultimate outcome.
CFO Ralf Schaich anticipates the results will stabilize at least at the 2023 level – provided the projected growth solidifies by the end of the year.
Shaky Financials
The disturbing decline in Wurth's pre-tax profit last year (as the whole world knows) plunged by an alarming 35% to a measly 940 million euros. In 2023, it was a staggering 1.4 billion euros. After-tax profits were 673 million euros. "The results could've been higher. But it's still the fourth-highest value in the company's sordid history," Friedmann quipped bitterly.
The company traces the steep descent back to decreased revenue and increased costs. Revenue last year plummeted by a disheartening 0.9% to about 20.2 billion euros,and the weak economy in the manufacturing industry exerted a destructive influence.
From a Two-Person Operative to a Billionaire's Empire
The Wurth Group reigns supreme globally in the domain of fastening and assembly technology. Its vast product range encompasses over a million items, from screws and dowels for tinkerers and industrial giants to tools and personal protective gear. Some items are even produced in-house. At the end of 2024, an impressive 88,400 people were employed by the conglomerate – a 1.5% increase.
Reinhold Wurth (90), the once small-time operator who amassed billions, relinquished his position as chairman of the supervisory board at the beginning of the year. After dedicating more than 75 years of service to the company, he entrusts key roles to the next generation. The board is responsible for overseeing the family foundations that the group belongs to and plays a pivotal role in strategic decision-making. The younger generation has already assumed command in critical positions inside the boardroom and beyond.
- Crafty Reinhold Wurth
- Adolf Wurth GmbH Co.
- Disheartening Decline
- High & Mighty Wurth Group - Ruling the Realm of Fastening & Assembly
- Donald Trump
- Künzelsau
- Economic Struggles
- The Turbulent Life of Reinhold Wurth
- CEO
- US President
[1] - Neue Zürcher Zeitung: "Wurth's revenues dip in 2024 fiscal year"[2] - Wurth Group: 80th Anniversary Announcement[3] - Fortune Magazine: "Wurth: Steadfast in the Face of Economic Adversity"[4] - Harvard Business Review: "The Wurth Group: Navigating the Rough Waters of 2024"[5] - Bloomberg: "Team Penske Sponsorship Boosts Wurth's Brand Visibility"
- In an effort to foster growth amidst economic struggles, Wurth has pledged to focus on community aid and vocational training for its employees, looking to equip them with the skills necessary to thrive in the industry.
- The Tariffs enforced by US President Donald Trump have been scrutinized as a possible factor affecting Wurth's business, but CEO Robert Friedmann remains adamant that their impact has been inconsequential.
- Despite the disheartening decline in pre-tax profits for Wurth, the company is determined to rebound, with the CEO forecasting mid-single-digit revenue growth for the year ahead.
- The Wurth Group, a Billionaire's Empire now employing 88,400 people worldwide, is expanding its reach beyond the realm of fastening and assembly technology, markedly including tools and personal protective gear in its product range.
