G&D net income passes the EUR 100 million mark
The company’s worldwide operations, with a workforce of close to 10,000 employees, generated net sales of EUR 1.7 billion. This represents an increase of 9% compared with the previous year. Net income for the year increased by 16% to EUR 111 million. EBIT amounted to EUR 160 million.
In 2008, G&D made further substantial investments, increasing its R&D expenditure to EUR 109 million. The company announced plans to increase its expenditure on property, plant and equipment in 2009, to EUR 150 million.
G&D’s Banknote business unit delivered the highest contribution to Group revenues with sales of EUR 909 million – up 9.1% on the previous year.
The Paper and Printing divisions both benefited from the growing customer demand for complex security features.Sales by the Cards and Services business unit increased year-on-year by 5.6% to EUR 609 million.
G&D estimates its Payment division gained additional market shares, profiting especially from the ongoing migration from simple magnetic strip cards to more sophisticated cards with embedded microprocessors. G&D was able to expand its position in this market sector, particularly in Canada, France and Spain.As in 2007, the Telecommunications division increased the volume of sales of SIM cards. The global trend towards lower prices was balanced by a higher volume of sales and greater demand for premium products offering higher memory capacity.The Government Solutions business unit, whose principal activities involve supplying security documents, passports and ID cards to government authorities also increased its sales by 17.6% to nearly EUR 159 million.
The New Business division also produced satisfactory results. Created in early 2006 with the mandate of systematically identifying and developing new areas of business, the division doubled its sales in 2008 to roughly EUR 12 million, compared with the EUR 6 million generated in 2007.
Giesecke & Devrient generates 85% of its total net sales with customers outside Germany. Giesecke & Devrient increased its global workforce in 2008, creating 930 new jobs at its sites around the world. At year-end 2008, the Giesecke & Devrient employed a total workforce of almost 10,000.