Bechtle blames falling profits on staff investment

Earnings after tax drop 17 per cent to €13m for its Q3, while revenue for the same period creeps up one per cent to €501m

VAR Bechtle has said it still plans to take more market share in 2012 despite posting a profit decline in its Q3, which it attributed to an increase in headcount.

For the three months to 30 September, Bechtle saw its earnings after tax fall 17 per cent year on year to €13.2m (£10.5m) on sales that rose one per cent to €501m.

The VAR puts the slowing profits down to increased investment in staff, as well as weak performance in European markets outside of Germany, where it has its headquarters.

Its domestic revenue rose 6.5 per cent to €354m in its Q3, while sales from abroad dropped 10.5 per cent to €147m.

The number of staff at the reseller has risen to almost 6,000, an increase of nearly 500 since the end of 2011.

Thomas Olemotz, chairman of the executive board at Bechtle, said staff investment is a key priority for the firm's success.

"Ensuring our company's sustainability by gaining and bonding qualified experts is currently one of our top priorities," he added.

"The lower income growth compared to the prior year is the result of the weak performance in the European markets outside Germany and the major investments in new employees."

In the nine months to 30 September, Bechtle's revenue grew 5.3 per cent to €1.5bn while earnings after tax declined 16.5 per cent to €36m.

In its financial forecast for the rest of 2012, Bechtle said: "[We] expect this year's revenue increase to outperform the market. Thus the company will further expand its market share."