E+H reports on 2016 sales

The report that follows was first published on Eoin O’Riain’s Read-Out.net website in Ireland last week. It gives the first report on Nick Denbow’s visit to the E+H European presentation in Basel, which included a tour of the Maulberg manufacturing operation for level measurement products, like the NMR81 radar based systems. Financial results for the 2016 year were discussed with the 70+ journalists and media analysts attending.

This year, Endress+Hauser expanded the presentation of their annual financial results, inviting journalists from not only Germany and Switzerland, but including others from Belgium, the Netherlands and Great Britain. In all 70+ attendees heard Klaus Endress and Matthias Altendorf say that the consolidated Group sales fell slightly between 2015 and 2016, by 0.2%, achieving Euro2.1Bn. This fall was actually only because of currency fluctuations. “Currencies created a headwind for us last year,” said Altendorf. Working from the value of sales in local currencies, sales in total actually increased by 2.1%. Whilst the Group is family owned, their annual report is published and audited to the standards expected of any other international business.

CEO Matthias Altendorf emphasised that “When compared to overall industry growth, we held our own”. E+H performed well in Europe, but sales in America declined. Africa and the Middle East experienced solid growth, but in the Asia-Pacific region business stagnated.

Within Europe, the best performances for E+H came from Ireland, Italy and Finland. The best performing sectors in all countries were food & beverage, life sciences, and water & waste water. Overall business declined in oil & gas, chemicals and primary industries like metals. The power and energy industry sectors showed good performance outside Germany, where E+H also felt the effect of weak German exports and some internal restructuring. The oil & gas decline badly affected sales in USA, UK and Norway, although the UK sales centre gave a good performance by aligning efforts with other active market sectors.

Investment continues.

E+H plans for investment and growth continue for the current year. Earlier in the week a new factory extension was opened in Reinach, where flow products are manufactured. (see Read-out Signpost – “Flowmeter output growth requires new facilities” – 5 May 2017).  The journalists were given a tour of the manufacturing facility in Maulberg (D), where a new extension to the production area is in operation, and a new NMi level measurement system calibration facility for radar based systems has just been completed. This is certified suitable for calibration of the Micropilot NMR81 radar system, working at 80GHz, which achieves a +/-0.5mm accuracy over a 30m range, for use in oil storage tanks and oil terminals. There are plans now to extend this calibration facility to allow such calibration out to 40metres, as well as to extend the factory yet further: 1912 people work at E+H Maulburg, and 5200 people in the Basel region, out of the total E+H staff of 13,000.

Analytical measurements

The biggest growth area in E+H is actually in the analytical instruments that use Raman spectroscopy to analyse liquid and gas streams on-line. The major industries now applying this technique are within the life sciences sector, where immediate analysis of input and both gaseous and liquid effluent streams enables much closer control of biochemical and fermentation processes. Indeed the 2017 issue of the E+H corporate magazine “Changes” features a major focus on new applications in the Life Sciences industries.

Other new analytical techniques are developed for monitoring water treatment processing, for example in the new Swiss plants which by law have to have a fourth stage of purification, to remove hormones, phosphorus and other drug residues. The strength of E+H here derives from their strategic decision a few years ago to invest in the process analytical area, particularly in the field of spectroscopy, acquiring Kaiser Optical, Analytik Jena and SpectraSensors. “Our analytics strategy has been validated by the market,” said Matthias Altendorf.

Bundling IIoT activities

The acquisition of German SensAction AG in early 2017 also ties in with Strategy 2020+ which was rolled out last year. The company, headquartered in Coburg (D), manufactures innovative systems for measuring concentrations in liquids. Endress+Hauser is tackling the challenges of digitalization by bundling a number of activities. A new subsidiary in Freiburg in Breisgau,(D), is working exclusively on products, solutions and services related to the Industrial Internet of Things (IIoT).

The significance of digitalization can also be seen in the growing number of patent registrations. There were 273 first filings in 2016. The intellectual property rights portfolio thus boasts more than 7,000 active patents. R&D spending rose to 7.8 percent of sales. Endress+Hauser introduced 64 new products to the market. “We are investing in innovation for our customers,” underlined the CEO.

Trends in automation.

The focus for E+H sales and their customer base is broadly on automation engineers, so it was interesting to hear Matthias Altendorf comment that the statistics for industrial output show that the Britain has now dropped out of the top 10 countries in terms of automation business activity, whereas they had held a prominent position there some years ago.

The other aspect of interest was that there are distinct differences between countries, in terms of the sex of the engineers involved in the major projects served by E+H. In Germany they are mostly male, whereas the majority of engineers in Turkey are female. In South Korea and India there are high percentages of female engineers (and engineering journalists). Also, by industry, it is noticeable that in the biochemical and life science sectors the engineers are predominantly female.

Power Industry Boiler Water Level Measurement Techniques

The March 2017 Inst Measurement and Control Technical Seminar evening will be hosted by Doosan Babcock in Manor Royal, Crawley, on Tuesday 21st March 2017.

This will be a tri-company, collaborative event, presented by Doosan Babcock, and also featuring contributions from Vega and TC-Fluid Control. It is aimed at providing attendees with a useful insight into industrial measurement application challenges in order to further their professional development knowledge.

Drum Level Control

The first presentation by Doosan Babcock will discuss Drum level measurement using DP Measurement and Hydrastep Measurement techniques.

Power station Steam Drum Level measurement is required for drum level control, Burner Management System (BMS) protection and Code compliance. Drum level is both a critical and difficult measurement to make. At steady state conditions, considerable turbulence in the drum can cause the level to fluctuate. A changing rate of water inflow and steam outflow adds to the potential for measurement error. The DP Measurement technique uses the difference in pressure between a head of water in an external reference column and the level in the drum. The density of water and steam vary appreciably with pressure, so the differential pressure obtained at any given level will vary as boiler pressure changes.

The Hydrastep technique detects the conductivity variation between the steam and the water. The electrode principle is an efficient system for measuring drum water levels.

Microwave Technology

Vega will explain how microwave technology can tackle a wide variety of applications associated with steam boilers. Non-contact or guided wave techniques have the ability to measure reliably, even with fluctuating temperatures up to 450C combined with pressures of up to 400 bar. Measurement is virtually unaffected by pressure and temperature changes. Top mounting makes installation and maintenance easy. In many cases microwave transmitters provide an alternative to legacy equipment for both solids and liquids. SIL qualification and boiler approval now enables microwave technology to  be used directly on steam boilers, with special modifications to compensate for saturated steam effects.

Visual/Glass and Boiler Steam Glass level gauges

untitledVisual/Glass and Boiler Steam Glass level gauges are a requirement on steam boilers for visual verification of the level control system, and will be discussed by TC-Fluid Control. Magnetic level gauges have many applications on and around the boiler, providing visual level indication whilst minimising potential leak paths, and can be used as an alternative to one of the glass level gauges on the boiler drum. Simple, robust technology provides a highly visible indication of process level at pressures of up to 400 bar and temperatures up to 450C.

Postscript: Wessex IMC Section meeting

Vega Controls will also give a talk to the IMC Wessex Section meeting on 15th March about the technology behind their 80GHz radar liquid level measurement systems. The talk will include live demonstrations, and takes place at the Forest Lodge Hotel, at Lyndhurst. A video is available that shows their new sensor.