STUTTGART, Germany, Dec. 24, 2015 /PRNewswire/ -- The DEKRA expert organization is benefiting from the growing global demand for safety. In the 2015 financial year, consolidated revenues are expected to climb by more than 7% to around EUR 2.7 billion. The company announced the news to journalists in Stuttgart on Thursday. As in previous years, DEKRA has boosted the number of employees by means of recruitment and acquisitions. At the end of 2015, the testing service provider will employ around 37,400 people in more than 50 countries. The number of employees in the current financial year has therefore increased by approximately 2,400 people and risen by a total of more than 15,000 people in the last five years. With further internationalization, DEKRA also expects to continue on its growth path in 2016, which has been sustained over the last 12 years: "We have set the course for the future with our 'Vision 2025' strategic program," said DEKRA CEO Stefan Kolbl. "We want to be the partner of choice when it comes to technical and organizational safety." DEKRA is already the largest expert company in Europe in terms of revenues in the so-called TIC (testing, inspection and certification) sector and the world's fourth-largest expert organization.
In 1925, DEKRA was founded in Berlin. In 2015, it celebrated the fact that it has been "Ensuring Safety for 90 Years". With the "Vision 2025" program, the company has focused on the dynamic development of global markets for safety services and on sustained growth in its anniversary year. "DEKRA is pursuing a clear goal: We want to save lives in the three elementary areas of life: on the road, at work and at home," explained Stefan Kolbl.
In light of DEKRA'Kolbls excellent positioning on future markets, Kolbl anticipates another rise in the demand for DEKRA services. With the acquisition of AT4 wireless (Spain), QuieTek (Taiwan) and the formation of DEKRA iST Reliability Services, a 51% joint venture with Integrated Service Technology (Taiwan), the company has gained access to business areas relating to the Internet of Things. "Thanks to this newly acquired know-how, we will also be able to check whether machinery and everyday devices can safely communicate with each other using wireless connections," reported Kolbl. In the product testing and certification service unit for global business relating to connectivity, DEKRA has already established a special unit at the Arnhem location (Netherlands). DEKRA experts provide support to customers already in the development phase of new products. Stefan Kolbl: "We ensure functional safety and unimpeded communication in the Internet of Things. Whether it is in an elevator, a car or a fire protection system. We also make sure that people stay in control."
Automotive -- Dynamic Development
DEKRA Automotive will increase its revenues for 2015 by more than 6% to around EUR 1.4 billion thanks to product innovations, efficient processes and further internationalization. In addition, over EUR 130 million will be generated from periodic industrial testing services in Germany carried out by DEKRA Automobil GmbH. In the area of periodical industrial services, the development of business relating to elevator inspections was particularly dynamic, with growth of nearly 20%. Cooperation with a leading manufacturer was intensified. This alone led to an increase in the testing volume by more than 10,000 elevators.
In Germany, DEKRA Automobil GmbH has grown by nearly 6% to around EUR 1.1 billion. This strengthened its position as a market leader in testing with a market share of approximately 34% and over nine million so-called Hauptuntersuchungen (vehicle inspections) per year. The universal introduction of safety-relevant main inspection adapters was a highlight in the financial year. This allows tests to ensure that electronic systems in the vehicle function correctly.
As a global market leader with around 26 million vehicle inspections per year, DEKRA has positioned itself towards further international expansion. In Europe, the testing network in Sweden has grown by twelve stations to 50 locations. Periodic vehicle inspections have also gained a foothold in Bulgaria. In North America, the network in the USA was expanded to 48 stations with new stations in California and Utah. In Canada, DEKRA opened its first three inspection stations in the Ontario province.
DEKRA Automotive has also expanded beyond vehicle inspections, among other regions in southeast Europe. An expert network was created across the Balkans and DEKRA established used car management in Slovenia, Serbia, Hungary and Bulgaria. In New Zealand, the subsidiary VTNZ successfully initiated driving tests on behalf of the local Ministry of Transport.
Industrial -- Sustained Growth
DEKRA Industrial will continue on its sustained growth path in 2015. Revenues are expected to rise by more than 15% to EUR 811 million. "We have already been able to significantly improve our market position over the past few years thanks to strategic acquisitions in terms of content and geography," said Kolbl.
Business from the product testing and certification service unit has grown both organically and as a result of the QuieTek and AT4 wireless acquisitions and the DEKRA iST Reliability Services joint venture. With the development of innovation-driven and high-tech markets relating to mobility, health and electronics, the number of employees in this business area has doubled to 1,600. With 85% of employees outside Germany, this is also the most international of all DEKRA units with labs around the globe.
The material testing and inspection service unit has realized the best business year so far despite a challenging market environment in key customer sectors such as the energy industry. This success is attributable to a strengthened market position as a partner for extensive services from the component part to the final product: "We have combined our skills in robot-assisted inspections with our software and analysis expertise to offer attractive services relating to remote monitoring and predictive maintenance in the future," reported Stefan Kolbl. Outstanding customer projects were carried out in power plants and industrial plants in Germany, Finland and South Africa, for example.
In the Insight service unit, DEKRA was able to strengthen its international consulting business relating to organizational and process safety again. After the acquisition of BST, Chilworth and RCI Safety in previous years, the acquisition of the Scottish company Optimus Seventh Generation Ltd. will improve access to the oil and gas industry, particularly in the area of offshore extraction in the North Sea. "As an expert consultant in occupational health and safety, we are now able to support high-risk industries throughout the entire production process with technical and organizational safety services," explained Kolbl. Several major customers were acquired thanks to this expertise.
Personnel: Leading Market Position
DEKRA Personnel expects its revenues to amount to almost EUR 458 million in 2015 at the high level of the previous year. DEKRA Academy, as one of the largest private training providers in Germany, and DEKRA Arbeit, as the seventh-largest company in the temporary work sector in Germany, both contribute to this result.
Climbing revenues in the corporate customer business of private training and further education have led to a rising number of companies investing in work safety -- for example, in the field of fire protection. Many companies are increasingly cooperating in training and further education with external training partners. For instance, DEKRA was in charge of the complete training management for the 150 sales partners of the Korean automobile manufacturer SsangYong Motors in Germany. At the same time, the DEKRA Safety Web is gaining more ground on the growth market of online qualifications, for example in the field of digital safety instructions for company car users.
Since 2012, DEKRA Academy has been training carers in Eastern Europe to work for German clinics and care homes. In 2015, the first graduates from Hungary had their qualifications recognized by the municipal social association in Saxony (Kommunale Sozialverband Sachsen) and started work. At the moment, more than 1,000 carers in Hungary, Serbia and Albania are getting their qualifications -- not only for work in Germany but also for clinics in the United Kingdom.
With the placement of temporary employees, DEKRA has successfully taken action in an environment with low unemployment and a high acceptance rate on the part of customers. By the end of 2015, more than 12,000 people will be working with DEKRA as temporary employees. In the yearly Lunendonk ranking of the top 10 companies in Germany providing temporary work and staffing services, DEKRA Arbeit is currently in 7th place (previous year: 10th place).
Positive Outlook for 2016
Thanks to its global positioning and extensive range of safety services, DEKRA anticipates a continuous positive business performance in 2016 at the high level of previous years. DEKRA CEO Kolbl: "Thanks to organic growth and the most recent acquisitions, there are huge growth opportunities in the following three areas of life: on the road, at work and at home. With Vision 2025, we have the necessary master plan to consistently take advantage of opportunities: We will be the global partner for a safe world."
About DEKRA
DEKRA has been active in the field of safety for 90 years. Founded in 1925 in Berlin as Deutscher Kraftfahrzeug-Uberwachungs-Verein e.V., it is today one of the world's leading expert organizations. DEKRA SE is a subsidiary of DEKRA e.V. and manages the Group's operating business. In 2015, DEKRA will generate sales totaling approximately 2.7 billion Euros. The company currently employs more than 37,000 people in more than 50 countries on all five continents. With qualified and independent expert services, they work for safety on the road, at work and at home. These services range from vehicle inspection and expert appraisals to claims services, industrial and building inspections, safety consultancy, testing and certification of products and systems, as well as training courses and temporary work. The vision for the company's 100th birthday in 2025 is that DEKRA will be the global partner for a safe world.
