The financial results of Tungsram Operations Kft. were according to the plans in 2018. The company group heavily invested during the not complete business year of its rebirth. The return on the investments is expected from 2020.
The Tungsram Operations Kft. closed its first business year with 243 million USD sales revenue. The 92,9% of the revenue was export. The net proft is -17,7 million USD, which is according to the plans of the management of Tungsram.
We have been expecting these results, since we had to count on the significant costs of the separation from GE and we heavily invested, too’, CFO István Tóth explained. For example, Tungsram had to take over 22 international subsidiaries, the employees of which have become Tungsram employees. The separation is going on according to plans, it is planned to be finalized this year.
The group invested in new businesses and product developments last year. We built up a new outdoor and indoor product portfolio and we also developed our component capabilities, for example to become the supplier of GE Aviation with a new workshop being set up at our Kisvárda site.
The Tungsram brand has appeared in a growth industry: the Agritech business is developing LED luminaires for indoor farming. The complete product portfolio is going to be introduced in June at the Greentech trade fair in Amsterdam. We have worked hard on university and startup relationships as well resulting in our open innovation center to be able to start operating soon.
Tungsram rebuilt its customer facing areas at the Budapest HQ to make it clear for the visiting international partners that the quality of our products remains the same or improves after the GE period.
We are expecting a growth both in revenues and in our global market share. The return on our initial investments can be expected from 2020 on”, Deputy CEO Gábor Boncz said. ‘We continue to focus on having the 50% of the revenue from lighting and having the other 50% from other businesses. This strategy has proven to be successful, so we are preparing more investments and developments.'