Lisi Business Report FY2006
Business Highlights
(in million euros) | FY2006 | FY2005 | Rate of change(%) | Factors |
Consolidated figures | ||||
Sales | 739.7 | 617.6 | 19.8 | - |
EBIT | 88.6 | 63.8 | 38.9 | - |
Automotive Division | ||||
Sales | 382.5 | 339.3 | 12.7 | See below (1) |
EBIT | 25.8 | 23.4 | 10.3 | See below (2) |
Factors
(1)
-In 2006, Automotive division sales reached a record 382.5 million euro.
This increase of 12.7% on 2005 is due to the acquisition of Knipping Verbindungstechnik
GmbH in July 2005, which showed its full effect in 2006. On a like for
like basis, growth was the same as overall European production, with a
drop limited to 0.7%.
(2)
With an operating profit (EBIT) that is at the 2005 level of 6.8% of sales
revenues, Lisi Automotive has to restructure to respond to the changes
forced upon it by its environment: stagnation or decline in automobile
production in developed countries and strong growth in emerging markets.
Thus following the disposal of Gradel in 2005, Lisi Automotive has decided:
-To get rid of its Monistrol factory, which specializes in standard screws,
-To cease production of components in Canada, relocating it to the Melisey
and Form a.s. sites,
-To acquire capacity internationally, to support the growth of its strategic
customers outside Europe.
International activities
Sales at its Beijing factory increased by 90.4%, and new orders with local
customers reached 35% of sales revenues. In the Czech Republic, to meet
the sharp growth in sales following the acquisition of Form a.s. in 2004,
all its activities will be brought together in a new factory, whose construction
will start in 2008. The Company has also opened a sales office in India,
located in Ahmedabad, with the clear intention of offering its skills
in cooperative design to local vehicle manufacturers.
Contracts
Orders for new products were up in 2006, with 148 new parts for annual
sales revenues 43 million euros. The largest orders were for mechanical
components, mainly in the brakes markets.
New contracts for clip fasteners are also sharply up, both in Germany
and in France.
-In January, the Company's Beijing unit won major orders from auto manufacturers
(VW, DPCA) and parts manufacturers (Seeber, Visteon, Sanoh).
-In January, the Company entered into a long-term agreement with Bosch
for the supply of guidance pins.
-In February, the Company completed the first deliveries to Bosch of new
handbrake adjustment system for the Ford Transit and Citroen's C4 Picasso.
-In March, the Company is appointed by PSA as a specialist to develop
fasteners for the interior of a new minivan based on the C3.
-In April, the Company won order for its Pressfix self-piercing nuts
from PSA, in particular the new 308 and C5.
-In May, the Company obtains orders for guidance pins from TRW and
Bosch for braking applications in China.
-In September, the Company entered a long-term contract with TRW to
manufacture braking components, including a new, electric handbrake system.
Alliance
-In October 2006, the Company signed two partnership agreements with the
Iranian Company, Sabouri, Industrial Production.
R&D
-Continuing from previous years, knowledge of materials and digital simulations were the basis for research in 2006.
-The perfecting of a very high resistance steel continued in 2006, in cooperation with a steelworks and a car manufacturer. The research should be complete in 2007.
-Improving the environment requires the replacement of zinc-based coatings that contain hexavalent chromium, in order to comply with the European directive on dangerous
substances. The implementation of this change, which affects many items, will continue through early 2007.
Five samples developed for new vehicles in 2006
(1) Peugeot 207
The parts that Lisi Automotive delivers for the 207, launched in April 2006, cover the entire vehicle: parts for the motor cradle (spacebars with reinforcement, centering devices etc), ground connecting screw, structural parts (struts, screws and axles for welding, clamping plates etc), seat fasteners, fasteners for interior and exterior fittings.
(2) Citroen C4 Picasso
The new Citroen C4 Picasso, on sale since October 2006, equipped with several parts supplied by the Company, including the supports for the rear shock absorber. The solution combining various technologies for its product is made up of:
A plastic support with two metal reinforcements, manufactured at Puiseux, to which are welded two spacebars made at Dasle,
Two plastic cages manufactured at Mellrichstadt with a nut from Thiant.
Another example of multiple technology components is the lateral support that facilitates fastening the wing and the bumper. It is made up of two pieces of plastic injected at Mellrichstadt and three pinch clasps made in Puiseux.
(3) Volkswagen Passat
Knipping designed an "EBS-Schraube" selfthreading, self-piercing screw, which is easier in assembly. This patented solution will be delivered in 2007 to Volkswagen for fastening sunshades on the rear doors of the new Passat.
(4) BMW Series 5
Lisi Automotive has developed a clip intended to fasten the central console of the dashboard of the BMW Series 5, which will be reused in the future for the Series 3. This clip is made up of a plastic pin injected in Mellrichstadt and a metal clip made in Heidelberg.
(5) Bosch
Since February 2006 Lisi Automotive has been manufacturing a new handbrake system for Bosch. Made up of a screw, a nut and a cage, this subassembly is intended for the Ford Transit van and the Citroen Picasso. Lisi Automotive provided its skill during the final design phase of this project, and is Bosch's sole supplier for this solution.
Investment Activities
(in million euro) | 2006 | 2005 | 2004 | 2003 |
Capex | 47.2 | 47.3 | 27.0 | 25.16 |