Engel riding out the tough times; introduces scrap bonus
In a challenging market for injection molding machines, Engel held its own last year, but is facing a sharp drop in...
In a challenging market for injection molding machines, Engel held its own last year, but is facing a sharp drop in sales this year.
Speaking at Engel’s press conference during NPE, Dr. Peter Neumann, CEO at the Austrian parent Engel Holding GmbH, said his company’s sales were 591 million euros (about $959 million Canadian) in the fiscal year ended March 2009. This was down from 622 million euros (about $1,009 million Canadian) for the fiscal year ended March 2008.
Neumann predicted a tough year ahead, with sales dropping by as much as 50%. However he said he was encouraged by Engel’s strong showing in Europe, where it held 27% market share in 2008. There is room to grow in North America, where Engel held 12% of market share in 2008 (higher in Canada, but lower in the US) against 25 to 30 competitors. There’s also a way to go for Engel in Asia, where it held 4% of the market last year. Overall, the company held a 13% share of the world market for injection molding machines in 2008.
Neumann stressed that Engel is a strongly financed, privately held company, well positioned to ride out the current market downturn.
Also at their NPE press conference, Engel announced that it is offering a “scrap bonus” – a US$5,000 incentive for companies to switch an old machine for a new one. This scrap bonus applies to any new Engel machine and is available until September 30, 2009.
“In this economic climate, all companies are looking for ways to cut costs and achieve savings, said Steve Braig, president of Engel North America. “Molders can look to find those savings by replacing inefficient machines that have been in service for many years.” The scrap bonus program will make it easier to do that.