Giesecke & Devrient raises net income by 20 per cent

Monday 17 May 2004 09:04 CET | News

Giesecke & Devrient (G&D) has reported financial result for fiscal 2003. Revenue fell by 3.8 per cent, to EUR 1.05 billion, as against the previous year, the result chiefly of currency translation effects. After adjustment, revenue was 4 per cent higher than the 2002 figure. Around 87 per cent of revenue was generated by foreign business.

The Munich-based organization succeeded in increasing its net income to EUR 28. 2 million. Compared with 2002, this was equivalent to an improvement of 20 per cent. G&D expects revenue to increase in the current year, due among other factors to new projects and the rollout of new products. High investment in Germany as industrial base Giesecke & Devrient invested around EUR 100 million in Germany last year. In April 2003, a new facility for security thread and hologram production went into operation at the organizations Louisenthal site. Five months later, a new technology center was opened on the extended premises of the companys headquarters in Munich. The R&D activities of the currency automation and smart card divisions, previously spread over 16 sites, are now all located in the new facility. Due to this concentration of capacities, the efficiency of all processes rose significantly in 2003 from the moment the move to the new facility was completed. Prospects for 2004: revenue increase anticipated Berchtold expects a slight economic recovery in 2004, especially in the international environment. For G&D, he is anticipating higher revenue in the current fiscal year - especially in view of the favorable development during the first few months. New projects and the rollout of new products are stimulating marked growth. In April 2004, G&D was awarded the contract for the Austrian social insurance e-card, an electronic administration system incorporating leading-edge security technology. The project comprises the supply of eleven million chip cards and is worth EUR 48 million. In November 2003, G&D also became the first organization in Germany to supply hospitals with electronic health professional cards. Expansion of IT security consultancy services Giesecke & Devrients development into a global services and solutions provider promises to deliver addition momentum for growth. The companys proven competence in the field of security also covers the provision of expert advisory services. In a move aimed at strengthening its position in this sector, G&D is currently acquiring a majority stake in Essen-based secunet AG, a deal which will be completed at the end of May 2004. The merger of our subsidiary Secartis AG with secunet will create Germanys leading consultancy for IT security solutions. This excellent position will allow us to exploit national and international market potential much more efficiently, Berchtold explained. Extensive spending on research and development spurs innovation The aim of shaping the future through innovation can only be achieved on a basis of consistent investment in research and development. There are currently 600 researchers and developers working on new security solutions for banknotes and smart cards at G&D. The objective set for the coming months is to exploit the synergies from the organizations core competencies even more intensively than before, and to consolidate and expand market positions by means of innovative products. An example of innovation in our company is the successful interaction of core areas of expertise in developing the chip passport - the travel document of the future, Berchtold commented in this context. The chip will incorporate biometric characteristics of the passport holder, as demanded by the U.S. authorities and the ICAO, the International Civil Aviation Organization, a special U.N. agency. Data exchange between passport and reading device is contactless, and the privacy of the personal data is protected by proven methods stemming from smart card applications and cryptography.

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Categories: Payments & Commerce | Cards
Countries: World
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Payments & Commerce