MANN+HUMMEL GmbH Business Report FY ended Dec. 2019
Financial Overview |
(in million EUR) |
| FY ended Dec. 31, 2019 | FY ended Dec. 31, 2018 | Rate of change (%) | Factors | |
| Net Sales | 4,213 | 3,955 | 6.5 | 1) |
| EBIT | 153 | 94 | 63.9 | - |
Factors
1) Net Sales
-The Company’s net sales for the fiscal year ended December 31, 2019 increased by 6.5% from the previous fiscal year to EUR 4,213 million. Increased sales in both the Company’s Transportation and Life Sciences & Environment business segments contributed the Company’s increase in sales.
Joint Ventures
-Hutchinson announced that it has taken a majority share in the joint venture Thermal Control Systems Automotive (TCSA) created with the Company. It is integrated in Hutchinson’s Fluid Management Systems activity. The joint venture is dedicated to thermal management and cooling systems for vehicles, particularly for electric vehicles. Based in Laval, France and employing approximately 60 people, TCSA is already operational and will continue to develop in the future. The joint venture offers a complete range of active valves to manage the circulation of fluids inside a vehicle. These valves are adaptable to any type of platform. The technologies in question contribute significantly to the reduction of CO2 emissions. (From a press release on September 6, 2019)
Business Partnerships
-CMBlu Energy AG and the Company announced that they have signed an agreement for the joint development and industrialization of energy converters for organic redox flow batteries. The aim of both partners is to support electric mobility through the development of the charging infrastructure and offer storage technology. The further development and industrialization of the battery stack is regulated in the long-term cooperation agreement with the Company. For this purpose, the Company has created a spin-off named i2M GmbH. The Company will build a complete production line in an European plant. CMBlu will develop special pilot projects with reference customers in the next two years. CMBlu plans to market the first commercial systems in 2021. (From a press release on March 28, 2019)
Recent Developments
-The Company will further strengthen its competitiveness by identifying and implementing efficiency improvements. In light of unsatisfactory earnings in 2018, the Company will begin a global savings initiative to reduce its cost structure by approximately EUR 60 million. The Company expects to complete the initiation of these cost saving measures by the end of 2019 and to realize their full effects in 2020. It remains dedicated to executing internal restructuring processes. In addition to the automotive and industrial business, the Company will drive innovation and profitability in its newly formed Life Sciences & Environment segment. (From a press release on February 5, 2019)
Contracts
-The Company will supply products to VinFast, a Vietnamese automaker which has a licensing agreement with a German premium automaker for the powertrain of its various models. Specifically, the Company will provide components including air cleaner systems, charge air ducts, oil filter systems, fuel filters and intake manifolds for two VinFast models, the VinFast Lux A 2.0 sedan and the VinFast Lux SA 2.0 SUV.
Awards
-In 2019, the Company won the following awards:
- General Motors 2018 Supplier of the Year
- FAW-VW Outstanding Contribution & Marketing Innovation Award
- Ford Top Supplier Award for Mann+Hummel Thailand
R&D Expenditure |
(in million EUR) |
| FY ended Dec. 31, 2019 | FY ended Dec. 31, 2018 | FY ended Dec. 31, 2017 | |
| Total | 135 | 140 | 133 |
-The Company aims to invest approximately 4% of its sales every year in research and development.
R&D Structure
-As of December 31, 2019, the Company has more than 1,100 employees working in research and development.
Product Development
Fine dust particle filter concept integrated to front end module
-In cooperation with HBPO, the Company developed an integrated fine dust particle filter concept that can be installed in a front end module, between the cooler and bumper. The filter can be used in a passive or active mode. In passive mode, the system filters inflowing air while the vehicle is in motion, reducing fine dust concentration. In active mode, a fan behind the cooler increases the air volume flowing through the system, thus increasing the amount of dust that is captured. The fine dust particle filter concept enables the vehicle to improve its fine dust emission balance to levels comparable to fully electric vehicles.
Filter monitoring solution
-The Company announced that it is the first filter manufacturer worldwide which offers a solution for precise monitoring of the filter. With this new solution, fleet operators can now view the exact status of their fleet at any time and ensure that the filter is always changed at the right time. This has a positive effect on the efficiency of the vehicles and thus reduces total operating costs. Various sensors monitor the load status of air and cabin air filters, oil, hydraulic oil and transmission oil filters as well as fuel pre-filters and main filters. Furthermore, the status of the engine oil, hydraulic oil and fuel can also be observed. (From a press release on November 7, 2019)
Technologies showcased at IAA 2019
-The Company announced that it will hold the world premiere of its integrated fine dust particle filter at IAA 2019. Developed in cooperation with HBPO, it can be fitted to previously unused installation space in the front-end module. The flexible filter element is integrated between the cooler and bumper. This allows every new vehicle to improve its fine dust emission balance. The passive brake dust particle filter is fitted directly on the brake caliper and retains particle emissions directly at the brake. The Company’s FreciousSmart cabin filter system is suitable for electric vehicles, as it enables the air conditioning system to operate primarily in recirculation mode. As a result, the energy consumption is reduced and the service life of the filter elements is extended. For e-mobility, the Company offers numerous filtration solutions including cooling air particle filters, air dryer cartridges and oil dryer cartridges which are all designed to reliably protect the battery system. The Company’s integrated air guidance system protects fuel cells from harmful gases, particles and water. (From a press release on September 10, 2019)
Capital Expenditure |
(in million EUR) |
| FY ended Dec. 31, 2019 | FY ended Dec. 31, 2018 | FY ended Dec. 31, 2017 | |
| Total (Investments in tangible assets) | 143 | 154 | 164 |
-In the fiscal year ended December 31, 2019, the Company’s capital expenditure amounted to approximately 3.4% of its sales.
Investments outside Germany
<U.S.>
-Officials at the Company’s subsidiary, MANN+HUMMEL USA, announced that it will invest USD 15 million in new equipment and building improvements at its plant in Dunlap, Tennessee. The plant produces air intake manifolds and filtration systems for automotive OEMs and currently has 300 employees. The company expects to create up to 50 additional jobs over the next five years. (Tennessee Department of Economic Development release on December 10, 2019)