Mahle GmbH Business Report FY ended Dec. 2014
Business Highlights
Financial Overview |
(in million Euros) |
| FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | Rate of change (%) |
Factors | |
| Overall | ||||
| Sales | 9,942.4 | 6,941.3 | 43.2 | -The majority of the sale increase can be attributed to the first full-year inclusion of sales from the MAHLE Behr Group. The full consolidation of the Letrika Group also had a positive influence on sales. |
| Net profit | 279.2 | 235.6 | 18.5 | - |
| Sales by business unit | ||||
| Engine Systems and Components | 2,529.8 | 2,494.5 | 1.4 | 1) |
| Filtration and Engine Peripherals | 1,981.4 | 1,946.4 | 1.8 | 2) |
| Thermal Management | 2,995.5 | - | - | 3) |
1) Engine Systems and Components
-In the year ended December 31, 2014, the Engine Systems and Components business unit posted a 1.4% increase in sales. The increase in sales volumes in the growth region of Asia/Pacific made a particularly positive contribution to the development of sales. In terms of products, alongside the ramp-up of series production for passenger car diesel steel pistons, the valve and assembled camshaft product groups played a particularly significant part in the sales growth.
2) Filtration and Engine Peripherals
-In the year ended December 31, 2014, sales of the Filtration and Engine Peripherals business unit grew by 1.8%. Oil and fuel filters, valve cover modules, and air intake modules accounted for the largest increases in sales. The emerging pump segment also made a significant contribution to sales growth with controlled oil pumps.
3) Thermal Management
-In the year ended December 31, 2014, the Thermal Management business unit, which originated from the first consolidation of the MAHLE Behr Group, posted sales of EUR 2,995.5 million. The business unit accounted for around 30% of group sales. Around half of its sales were generated in the two key product categories of engine cooling and air conditioning.
Acquisition
-Mahle Japan Ltd., a Japanese unit of the Company, will launch a public takeover bid for Kokusan Denki Co., Ltd. Kokusan Denki is one of Mahle Japan's equity method affiliates. The offer is effective for 30 business days from May 1 through June 16, 2015. The proposed price is JPY 370 per share. Mahle Japan is seeking a minimum bid of 11.01% out of all issued shares to increase its shareholding ratio in the target company to more than 50%. Mahle Japan will launch the takeover bid as a step to make Kokusan Denki its fully owned subsidiary. (From an article in the Nikkan Jidosha Shimbun on May 7, 2015)-The Company announced that it has signed a definitive agreement to acquire the wholly-owned thermal business of Delphi Automotive PLC for cash consideration of approximately USD 727 million. The transaction is expected to close in the third quarter of 2015. Delphi's Thermal division had 2014 revenues of USD 1.6 billion, with approximately 6,700 employees and 13 plants globally. The product portfolio, ranging from HVAC modules and air conditioning compressors to cooling components, is an ideal complement to the Company's existing thermal management activities. The goal is to integrate the 13 Delphi plants in Europe (Poland, Slovakia, Hungary), North and South America (USA, Mexico, Brazil), and Asia (China, India), as well as the development centers in the U.S. and Luxembourg, into the Company's global organization. The transaction positions Delphi with a more focused high-growth product portfolio that addresses the trends of safe, green and connected. Delphi and the Company also signed a separate letter of intent to sell Delphi's stake in Shanghai Delphi Automotive Air-Conditioning System Co., Ltd. (From a press release on February 19, 2015)
-The Company announced that it signed an agreement for the acquisition of approximately 54% share in Slovenian group Letrika d.d. operated by several state-owned firms. The Company expects this acquisition to be granted in the second half of 2014. In 2013, Letrika generated sales of EUR 242.5 million with its 2,416 employees at seven production and development locations in Slovenia, Bosnia and Herzegovina, Belarus, China, and Brazil. Letrika develops and manufactures electric motors, starter motors, generators, and electrical drive systems for customers in the passenger car, commercial vehicle, and agricultural and construction machinery market segments, as well as other industrial applications. (From a press release on June 20, 2014)
-The Company acquired all of the shares in its former joint venture company Mahle IPL Limited at the end of the 2013 business year. The Company had already been a majority partner in the joint venture with a share of about 60%. The piston plant, which is located in Chennai, India, generated sales of approximately EUR 15 million in 2013. The Company also operates Mahle Engine Components India Private Limited, a wholly owned subsidiary in Pithampur, India, and is a majority shareholder in the joint venture Mahle Filter Systems (India) Limited and Behr India Limited. (From a press release on January 10, 2014)
Manufacturing Plants outside Germany
<China>-In November 2014, Bosch Mahle Turbo Systems started operations at Bosch Mahle Turbo Systems (Shanghai) Co., Ltd., the Bosch-Mahle joint venture's first plant in China. The new plant was built on approximately 5,000 square meters of land within Mahle's Shanghai facility. The plant is capable of producing 2 million turbochargers per year. These turbochargers will be used on gasoline engine vehicles sold in China. (From news releases issued by multiple sources on November 26, 2014)
-MAHLE Group China announced that Mahle Filter Systems (Hubei) Co., Ltd., its new production facility in Wuhan, began operating on August 12, 2014. Investment in this company totaled EUR 75 million. The plant will produce automotive filter systems and engine components such as air filters, intake manifolds, engine cylinder head covers, and oil coolers for Nissan, Dongfeng Peugeot-Citroen, General Motors, Honda, Volvo, Suzuki, Renault and other companies. Its annual production capacity is expected to reach 2 million units and sales are forecast to total CNY 1 billion per year. (From news releases issued by multiple sources on August 13, 2014)
-In August 2014, Shanghai Behr Thermal Systems Co., Ltd. (SBTS), a joint venture between MAHLE Behr GmbH & Co. KG and Shanghai Sanden Behr Automotive Air Conditioning Co., Ltd., opened another plant in Shenyang, China. It is the fifth production location of the Thermal Management business unit in China and is specialized in the manufacture of products for vehicle air conditioning and engine cooling.
-In June 2015, Shanghai Behr Thermal Systems Co., Ltd. (SBTS) will officially open its first plant in Chengdu, China, which is in the immediate vicinity of the Volkswagen and Volvo plants. Air conditioners as well as engine cooling components and systems will be manufactured there.
<Indonesia>
-In October 2014, the Company opened a plant in Cikarang near Jakarta, Indonesia. Pt. MAHLE Filter Systems Indonesia will manufacture air intake modules, air ducts and cylinder head covers primarily for Japanese key customers.
<Mexico>
-The Company will open an additional filter plant in Celaya, central Mexico, in April 2015. The total investment amounts to around EUR 16 million.
-The second plant in Mexico of the Thermal Management business unit is being erected in close proximity to the Engine Systems and Components business unit plant as well as to an already existing plant of the Thermal Management business unit in Ramos Arizpe. Construction began in July 2014. The plant will start series production in July 2015. The product range will include air conditioners as well as engine cooling components and systems. It will supply automobile manufacturers in U.S.
Awards
-Major awards received in 2014.| Award Winner | Award | |
| January | MAHLE Technologies Holding (China) Co., Ltd. | BYD Auto "Excellent Service Award" |
| MAHLE Engine Components (Nanjing) Co., Ltd. (China) | China National Heavy Duty Truck Group (CNHTC) "Excellent Partner" | |
| February | MAHLE Metal Leve S.A. (Brazil) | John Deere Power Systems"Achieving Excellence – In Recognition of Partner-level Performance" |
| MAHLE Engine Components USA, Inc | John Deere Power Systems"Achieving Excellence – In Recognition of Partner-level Performance" | |
| MAHLE Behr Charleston Inc. (U.S.) | Ford "Q1" | |
| MAHLE Behr France Rouffach S.A.S. | Ford "Q1" | |
| March | MAHLE Engine Components Japan Corporation | Isuzu "Achievement of Quality" |
| MAHLE Filter Systems Philippines Corporation | Isuzu Philippines "Excellent Parts Quality" | |
| MAHLE Behr Korea Inc. | Renault Samsung "Outstanding Performance - Quality Improvement Plan" | |
| April | MAHLE Behr GmbH & Co. KG (Germany) | Jaguar Land Rover "JLR Body Engineering Gold Award" |
| MAHLE Componentes de Motor de México, S. de R.L. de C.V. | Jaguar Land Rover "JLRQ Award" | |
| MAHLE Sistemas de Filtración de México S.A. de C.V. |
Toyota "Certificate of Quality Performance Achievement" | |
| May | MAHLE Sistemas de Filtración de México S.A. de C.V. |
JATCO "Best Performance" |
| June | MAHLE Metal Leve S.A. (Brazil) | PSA Peugeot Citroën "Supplier Award for Industrial Excellence" |
| MAHLE Motorkomponenten GmbH (Germany) |
"Supplier Award - Best Plant" | |
| MAHLE Componentes de Motores S.A. (Portugal) | "Supplier Award - Best Plant" | |
| MAHLE Componentes de Motor España, S.L. (Spain) | "Supplier Award - Best Plant" | |
| July | MAHLE Filter Systems UK Ltd. | Volkswagen "Formel Q Capability" |
| September | MAHLE Engine Components USA, Inc. | Ford "World Excellence Silver Award" |
| MAHLE Componentes de Motores S.A. (Portugal) |
Ford "Q1" | |
| MAHLE Behr France Rouffach S.A.S. | GM "Supplier Quality Excellence Award" | |
| MAHLE Filter Systems North America, Inc. | GM "Supplier Quality Excellence Award" | |
| MAHLE Componentes de Motor de México, S. de R.L. de C.V. | GM "Supplier Quality Excellence Award" | |
| MAHLE Behr Mexico S. de R.L. de C.V. | GM "Supplier Quality Excellence Award" | |
| MAHLE Filter Systems Japan Corporation | Nissan "Best Performance Award" | |
| October | MAHLE Behr Charleston Inc. (U.S.) | Ford "Q1" |
| MAHLE GmbH (Germany) | Renault "Innovation Supplier Award" | |
| November | MAHLE Engine Components (Nanjing) Co., Ltd. (China) | Dongfeng Light Engine "Excellent Supplier" |
| December | MAHLE Engine Components (Nanjing) Co., Ltd. (China) | Beijing Foton Cummins Engine "Best Quality" |
| MAHLE Engine Components (Thailand) Co., Ltd. | "GM Supplier Quality Excellence Award" | |
| MAHLE Donghyun Filter Systems Co., Ltd. (Korea) | "GM Supplier Quality Excellence Award" | |
| MAHLE Behr Korea Inc. | "GM Supplier Quality Excellence Award" | |
| MAHLE Engine Components India Private Limited (India) | "GM Supplier Quality Excellence Award" | |
| MAHLE Behr India Private Limited | "GM Supplier Quality Excellence Award" | |
| MAHLE Guangzhou Filter Systems Co., Ltd. (China) | Honda "Excellent Supplier" | |
| MAHLE Guangzhou Filter Systems Co., Ltd. (China) | Dongfeng Nissan Engine Company (DNEC) "Best Improvement Award" |
New Orders
-The Company's components and systems are featured on nine of the 10 engines recently named to the Ward's list of 10 Best Engines for 2014. The Company's components and systems featured on the 2014 award-winning engines include: piston systems and cylinder components as well as valve-train, air-management, liquid-management and thermal-management systems. Ward's 10 Best Engines for 2014 featuring the Company's components include:(From a press release on January 27, 2014)
| Model | Engine |
| BMW "535d" | 3.0L Turbodiesel DOHC I-6 |
| Chrysler "Ram 1500 EcoDiesel" | 3.0L Turbodiesel DOHC V-6 |
| Fiat "500e" | 83-kW Electric Motor |
| Ford "Fiesta" | 1.0L EcoBoost DOHC I-3 |
| GM "Chevrolet Cruze Diesel" | 2.0L Turbodiesel DOHC I-4 |
| GM "Chevrolet Corvette Stingray" | 6.2L OHV V-8 |
| Honda "Accord" | 3.5L SOHC V-6 |
| Porsche "Cayman" | 2.7L DOHC H-6 boxer |
| Volkswagen "Jetta" | 1.8L Turbocharged DOHC I-4 |
R&D Expense |
(in million Euros) |
| FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 | |
| Overall | 552 | 336 | 289 |
R&D Structure
-At the end of 2014, over 5,000 people were employed in the field of research and development worldwide.-The Company operates 10 R&D centers in seven countries:
- Stuttgart-Bad Cannstatt, Germany
- Stuttgart-Feuerbach, Germany
- Northampton, UK
- Farmington Hills/Detroit, USA
- Troy/Detroit, USA
- Jundiai/Sao Paulo, Brazil
- Shanghai, China
- Kawagoe/Saitama, Japan
- Okegawa/Saitama, Japan
- Pune, India
Expansion of R&D Center
-The Company announced that it has completed the expansion of its research and development center located in the suburbs of Shanghai. Approximately 15,000 square meters of production space and 3,200 square meters of office space have been added to the facility. The expansion project includes Bosch Mahle Turbo Systems' factory that will produce tools for filters and engine auxiliary components. (From news releases issued by multiple sources on December 2, 2014)Technology Development
-Mahle Filter Systems North America announced that its studies show its pendulum-slider pump can reduce CO2 emissions by 3% to 4% and boost fuel economy as well. The pendulum-slider pump currently is produced at the Company's facilities in Germany and China. (From a press release on June 17, 2014)-Mahle Behr USA is developing exhaust gas heat exchangers for gasoline engines to help auto makers meet new fuel-economy and emission standards. The Company estimates that fuel-economy improvements of up to five percent can be achieved with the addition of EGR technology on most gasoline engines. EGR systems and components are produced at the Company's facilities in Charleston, South Carolina, USA. (From a press release on June 17, 2014)
Capital Expenditure |
(in million Euros) |
| Business Units | FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 |
| Overall | 488 | 397 | 324 |
| Engine Systems and Components | 179 | 173 | 144 |
| Filtration and Engine Peripherals | 118 | 110 | 99 |
| Thermal Management | 119 | *38 | - |
* Short business year October to December 2013 of the automotive business of the former Behr Group.