HMF delivers record-breaking turnover despite fire, pandemic and supply challenges
For Danish crane manufacturer HMF, 2021 brought both a worldwide pandemic, disturbances in the global supply chains, and a factory building on fire. Nevertheless, the year ended with record-high sales figures, a full order book, and plans for new headquarters. HMF's CEO puts the excellent result down to increased demand on all markets, higher activity in the production, and hard work by all employees and partners.
2021 turnover beats expectations
The 2021 annual accounts are currently being presented for many Danish companies. For loader crane manufacturer HMF, there is reason for great satisfaction despite two years with many uncertainties.
"After 2020 we were very uncertain about the future and therefore we didn’t have great expectations for 2021. But fortunately, our worries were put to rest", says Klaus Skov Mortensen, CFO.
Indeed, 2021 exceeded all expectations, and Denmark's only manufacturer of loader cranes reached a record-breaking turnover of DKK 1.1 billion. At the same time, they turned a deficit in 2020 (DKK -3.8 million) into a nice profit (DKK 85 million). According to Klaus Skov Mortensen, the good result is mainly due to high activity in most markets after a 2020 with Covid-19:
"First and foremost, Covid-19 has created a 'ketchup effect', where the lack of activity from 2020 is now materializing. In addition, private consumers have spent more time in their homes and gardens, and they’ve also had more money in their pockets. At the same time, many public infrastructure projects have been launched."
According to CEO Jens Seehusen Christensen, the great turnover is also a result of the hard work and effort delivered by employees and partners around the world:
"The result is mainly due to a higher activity in our production and on the markets. Without skilled and hard-working employees and sales partners around the world, this would never have been possible. It just once again underlines that our employees are HMF's greatest asset."
Turbulent year ends well for new CEO
CEO Jens Seehusen has only been with HMF since August 2021, although he seems to have experienced several years’ worth of events in that time.
In just 7 months, Jens Seehusen has had to steer HMF through a Covid-19 epidemic, long delivery times and high price increases on both parts and truck chassis, and not least a fire in a production building after just 2 months in his new position.
"I must admit that it has been a somewhat turbulent start at HMF. The fire in Galten, in particular, has given me a couple of sleepless nights. But at the same time, it has been really impressive to see how HMF stand united and pull together when something like this happens. As CEO, I can only be proud of that," says Jens Seehusen.
Seehusen is referring to how HMF managed to restore the supply chain and get production back up and running in just one week after the fire. An achievement Jens Seehusen can add to his list of accomplishments since August, along with the planning of new headquarters, and now, the achievement of a record-breaking turnover.
"We have proactive and skilled employees who can think independently and act quickly when something like the fire happens. Without them, it would not have been possible to restore the supply chain so quickly, nor to achieve such a great annual result."
Predicting a good 2022 despite high uncertainty
Based on the significant order intake of 2021, HMF's order book has grown significantly. Therefore, the company expects continued growth in 2022, budgeting for a turnover in the range of DKK 1.1-1.2 billion.
This in spite of a high degree of uncertainty related to global supply chains and geopolitical conditions. Further price increases on everything from raw materials to energy, an extended delivery time for key components and truck chassis, and a shortage of available vehicle body building capacity make 2022 unpredictable.
"In many ways, we are facing a year of great unpredictability. What is happening in Ukraine? Will there be more Covid-19 waves? What will happen with the global supply chains? These are all things we take into account when forecasting and planning for the coming year," Jens Seehusen says, and continues:
"But we have some strong supply chains at HMF and no operations in neither Russia nor Ukraine. What we do have, however, is a continual increasing demand for HMF's truck cranes and a full order book well into 2022. That’s why we believe in a strong year."
2022 has also started off well. March was a record month for the crane manufacturer with an unprecedented high number of manufactured loader cranes from the factory in Højbjerg. A similarly increased production rate is expected for the rest of the year as well.
HMF believes in itself and invests in the future
The trust in a strong future market is probably most evident by the massive investment the company announced in March. At this time HMF announced that they plan to merge the current activities in Højbjerg (administration and production) and Galten (production, service and body building) in brand new buildings.
The new domicile will thus contain HMF's production and administration as well as service and vehicle body building activities. The current properties in Galten and Højbjerg will then be put up for sale.
"The strong annual result shows us that our customers believe in us. And we also believe in ourselves. That’s why we’re investing in the factory of the future", Seehusen says, and continues:
“We already have many good initiatives going on, and once we move into our new factory, we will be able to take our business to new heights. I predict a very exciting future for us."