The electrical equipment industry recorded a decline in sales of close to 20 percent, against the background of an overall downturn in the technical B to B sector.
All of the markets in which Sonepar operates were affected, from residential, commercial and industrial to utilities. The trend in copper prices also had a negative impact on revenue.
But this global picture is in fact made up of contrasting situations in the various geographies. Business in North America fell off by nearly 30 percent; Europe included markets facing outright slump conditions (35 percent in Spain, 45 percent in the Baltic States) as well as less troubled economies (9 percent in Germany, roughly 10 percent in France). In contrast, China held up fairly well, shedding only 1 percent. The economies that experienced a particularly powerful real estate boom were inevitably the hardest hit when it came to an abrupt end.
Sonepar has maintained its dense local customer service network
Despite this tough environment, Sonepar has succeeded in limiting the decrease in its own business, with 2009 revenue totaling 11.9 billion. Across the 35 countries in which the company operates, growth was down by just 12.9 percent (*) in a global market that contracted by an estimated 20 percent.
While taking the necessary steps to cut costs in all its country organizations, Sonepar has upheld its commitment to the future, maintaining its dense branch network to deliver the same high level of customer service as before. Site closings have been limited to those branches with no foreseeable chance of medium-term business recovery (about 30 out of a total of 2,100).
As a result, Sonepar has increased its market share and consolidated its prime position worldwide. The group has derived substantial flexibility and responsiveness from its decentralized approach to business. Those assets, combined with a proactive sales culture and the remarkable commitment of its teams, have enabled Sonepar to mitigate the effect of the crisis.
The Sonepar Group intends to leverage this challenging period to deepen and broaden its market presence. Sonepar will also be using all available opportunities for organic and external growth in 2010, a strategy made possible by its solid internal financing capability.
As a business with sound fundamentals and a family shareholding group that has supported it for more than 40 years, Sonepar can confidently look forward to a bright future.
(*) At constant exchange rates and after adjusting for the calendar effect.
