Industrial X-Ray Modules

The Industrial X-Ray Modules division (IXM), led since January 2018 by Stephan Haferl, successfully continued to grow its position in the core business of non-destructive testing (NDT). The business volume in the NDT segment, which accounts for more than two-thirds of IXM’s sales, grew by 11.0%. While sales with the sister division IXS were down, sales gains were made with other customers. Especially in the USA, the division was able to win business with its robust, portable Smart EVO x-ray solutions for pipeline inspection in the oil and gas sector. This was reflected in compelling growth of IXM’s sales in the USA. The previous years’ investments in the innovative iVario™ generator also paid off: Large numbers of customers integrated the new product within a few months of its introduction. This clear signal of wide acceptance of the new concept is all the more significant as IXM possesses a large installed base in the generator market.

In the security inspection business the division, which had expected 2018 to be in line with the previous year, was faced with a surprisingly steep market correction that entailed a decline of 25.6% in sales. The reasons were postponed major projects in the sector, subdued investment in expansion and upgrading, and delays in the introduction of new, innovative solutions in this market, which is dependent on government investment.

Across all market segments in 2018, IXM noted an encouragingly strong increase in sales to small and medium-sized customers – a definite endorsement of the excellent price-performance ratio of the division’s high-end products.

Improved margins thanks to ­profitable growth in portable x-ray units

The strong results in portable x-ray inspection devices for oil and gas companies drove a pronounced margin improvement in the core business segment of non-destructive testing. This more than made up for the decrease in security inspection sales, one-time effects of the production relocation in Flamatt, and (due to the slowing of business at some customers) productivity reductions in the pre-manufacturing of intermediate products for use by the Group. Operating earnings at EBITDA level improved in 2018 from the year before. In a demanding year this translated into an increase in EBITDA margin to 24.7% (prior year: 22.8%).