GœTERSLOH. In business year 2002/2003 the family-owned Miele Company has continued to be able to build on its unchallenged worldwide position as a premium brand for domestic appliances. Miele sees this as confirmation for the company philosophy of developing and manufacturing domestic appliances with an expected lifetime of at least 20 years. According to Rudolf Miele: “With worldwide sales of washing machines, tumble dryers and vacuum cleaners, as well as in particular kitchen appliances, we were able to rely on stable purchasing potential. The most demanding customers on all five continents decided on the Miele brand.”
The generally weak economic situation in Germany, however, certainly held back Miele’s turnover. The building recession has had particularly unfortunate consequences for the German domestic appliance industry and the clear purchasing reluctance of consumers in Germany has, in business year 2002/2003 (ending 30.06), caused Miele to record a slight drop in total turnover of 2.5% to EUR 2.19 bn (previous year: EUR 2.24 bn). If exchange rates against the euro had remained unchanged, then the Miele Group turnover would have virtually reached the level of the previous year. At the end of business year 2002/2003 the number of employees had reduced by 0.9% to 15,190 (previous year: 15,328). Of these, 3,764 (previous year: 3,652) are employed in subsidiaries outside Germany. In this year the Miele Group invested more than EUR 125 m (previous year: 130 m), about 20% of which was used to fund projects outside Germany.
In line with other domestic appliance manufacturers, Miele recorded a negative growth in turnover in Germany, in fact a reduction of 10.9%. Outside Germany Miele expanded by 2.6% to EUR 1.42 bn. This growth would have been more positive if it had not been for the necessary exchange rate currency calculation losses made in some countries. Miele has taken measures to protect itself against the effects of exchange rate variations.
The generally pleasing development outside Germany ““ in Europe as well as further overseas ““ led to an increase in the proportion of the Miele turnover due to export activities to around 67% (previous year: 64%). The Netherlands accounted for the single largest share of Miele’s foreign sales, followed by Switzerland, France, Great Britain, Austria and the USA. Double-digit turnover growth was again achieved by the Miele subsidiaries in Ireland and Greece. High turnover growth figures were also recorded in Italy, Belgium and Luxembourg for the business year 2002/2003.
Outside Euroland the very encouraging turnover increases noted in many countries are not always immediately apparent due to exchange rate fluctuations. Significantly higher turnover figure increases in local currency were recorded not only in Miele’s new East European subsidiaries, but also in longer-established West European subsidiaries such as Great Britain. High turnover increases were again registered in the USA and also in other overseas subsidiaries.
To a considerable extent losses on the German market could be offset against the sometimes very high turnover increases outside Germany. Sales of built-in kitchen appliances again grew significantly outside Germany in the business year 2002/2003. The full range of products from electric ovens, steam cookers, cooker hoods and coffee machines to the CombiSet range with wall ovens and hobs all played their part.
In the commercial field, both Germany and foreign markets experienced growth in sales. The range of commercial machines covers washer-extractors, tumble dryers and flatwork ironers for commercial applications, washer-disinfectors and lab washers as well as catering dishwashers and wet-cleaning laundry-care machines. The Miele kitchen-cabinetry division and the Imperial brand were able to consolidate their position in fiercely competitive markets.
