Brose Fahrzeugteile GmbH & Co. KG Business Report FY ended Dec. 2017
Financial Overview |
(in million EUR) |
| FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | Rate of change (%) | Factors | |
| Net Sales | 6,311 | 6,149 | 2.6 | 1) |
Factors
1) Net Sales
-The Company’s sales in the fiscal year ended December 31, 2017 increased by 2.6% to EUR 6,311 million, its eighth consecutive year of growth. All of the Company’s business segments contributed towards the increase in sales. The door systems division grew by 2.7%, the seat systems division grew by 1.7%, and the drives business division’s sales increased by 2.7%.
Recent Developments
-The Company announced that it will invest EUR 1 billion in new products, technical equipment and expanding international locations by 2019. Another EUR 2 billion will be available for acquisitions designed to expand the Company's range of products. The Company increased its business volume by 150% over the past ten years to more than EUR 6.1 billion in 2017. Assuming a constant scope, the Company sees an opportunity to achieve sales of over EUR 8 billion in the next five years, with acquisitions enabling total sales of EUR 10 billion. In the field of autonomous driving, the Company is working on rotating seats and new adjusters for the interior along with automatic side doors. The Company’s electric motors and drives are designed for flexible use in vehicle electrical systems ranging from 12 to 810 volts. The Company is also focused on air conditioning systems for electric vehicles. (From a press release on July 20, 2017)
Contracts
-In 2017, the Company received an order for a new electric air conditioning compressor developed at its Wurzburg location. The Company will supply more than two million systems to a premium automaker over a ten-year period starting in 2021. (From a press release on December 20, 2017)
Outlook
-In the fiscal year ending December 31, 2018, the Company expects to have net sales of approximately EUR 6,500 million. The Company aims to have sales of EUR 9.5 billion by 2025.
R&D Expenditure
-The Company aims to invest approximately 8% of its sales in research and development each year. In the fiscal year ended December 31, 2017, the Company invested approximately EUR 525 million in research and development.
Product Development
Electric motors and drives shown at IAA 2017
-The Company will be showcasing its new modular motor and electronics system at IAA 2017. It has systematically aligned its electric motors and drives to various advances in vehicle electrification. The Company is presenting a new drive for rear axle steering to reduce the turning radius and improve handling. The Company is also expanding the power range of its motors to over 15 kilowatts. Its portfolio includes auxiliary systems such as electric oil pumps and a newly developed 48 V booster drive for mild hybrid vehicles. The high-power density of the Company’s new efficient air conditioning compressor makes it suited for electric vehicles, as it minimizes the load on the battery and thus maximizes range. The Company received its first orders two years after unveiling the product. Series production will start in 2020. (From a press release on September 13, 2017)
Flexible interior concept shown at IAA 2017
-The Company demonstrated a multifunctional interior concept designed to adapt to various situations at IAA 2017. When in autonomous driving mode, the steering wheel folds into the instrument panel, while the pedals are raised to serve as footrests. A table folds out from the center console while the dashboard screen is shifted in front of the driver, increasing convenience. In other modes, the front seats can be rotated to face the back. Interior configurations can be selected through the vehicle’s screen or through smartphone apps. The concept’s flexibility is highlighted by power seat structures with new adjusters and kinematics technology, as well as a continuous rail system used for all seats. (From a press release on September 13, 2017)
Concept car featuring intelligent door and seating functions shown at IAA 2017
-At IAA 2017, the Company will showcase a concept car that highlights intelligent interactions between its door and seat functions. A power side door drive enables the door to be opened through smartphone or gesture control. Additional features include a door-integrated radar sensor to prevent the door from colliding with obstacles, and a capacitive sensor in the door for anti-trap protection. Showcasing comfort through connectivity, the car’s door can automatically open while the seat’s side bolsters are lowered as the driver approaches the vehicle. In addition, the headrests adapts to the driver’s size and seating position, while the seatbelts are automatically adjusted to make it easier for the driver to use. Lights embedded in the door and liftgate provide individualization and applications in car sharing by making a vehicle easier to identify. Vibration motors in the seats can warn the driver of a hazardous situation. (From a press release on September 13, 2017)
Patents
-The Company files more than 200 patent applications per year.
Capital Expenditures |
(in million EUR) |
| FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | FY ended Dec. 31, 2015 | |
| Overall | 409 | 380 | 362 |
-The Company expects to invest approximately EUR 1 billion from 2017 through 2019 in technical equipment and systems and in the expansion of additional locations.
Investments in Germany
-The Company invested approximately EUR 50 million in its Coburg location in the fiscal year ended December 31, 2017. The Coburg facility leads the Company’s seat systems division. The Company is planning to invest approximately EUR 180 million through 2020 in Coburg’s facilities.
-In the fiscal year ended December 31, 2017, the Company invested approximately EUR 22 million in its Bamberg location. The Bamberg location leads the Company’s door systems division. By 2020, the Company will have invested an additional EUR 130 million into Bamberg, which will include an expansion of the locations Berliner Ring site.
-The Company invested approximately EUR 40 million at its Wurzburg location, which leads its drives business division, in the fiscal year ended December 31, 2017. The Company will invest approximately EUR 130 million in Wurzburg from 2018 through 2020.
Investments outside Germany
-On November 28, the Company’s North America operations announced that it is investing USD 105 million in its Southeast Michigan facilities over the next five years. The Company’s investment is supported by the Michigan Strategic Fund, which approved a USD 2.7 million grant on November 28 to support the expansion. With the new investment, the Company will add 300 jobs at its headquarters in Auburn Hills and factory in New Boston. (From Detroit News article on November 28, 2017)
-The construction of the Company’s new plant, located in Colon, Mexico, remains on schedule, despite all adjustments prompted by the cancellation of the Ford plant in San Luis Potosi. The Colon plant will begin operations in 2018. (From a Mexico-Now article on October 9, 2017)
-The Company announced it will begin recruitment for its production site located in Queretaro. The USD 190 million plant will begin operations in August 2018. The plant will employ metal stamping, welding, painting and electronic assembly processes to manufacture adjustment systems for front and rear seats. The Company will add 150 positions for engineers and technicians to the 140 positions already filled for the first stage of operations. The Company expects to create a total of 900 jobs at the new plant, its largest in Mexico. (From a Mexico-Now article on June 3, 2017)
-In August 2017, the Company announced that it would invest EUR 50 million into the second construction phase of its facility in Prievidza, Slovakia. The expansion will lead to the hiring of approximately 500 new employees. The Prievidza facility produces window lifters and rear doors. The Company is hoping to complete the second phase of construction by August 2018. (From an article on August 8, 2017)
-The Company announced the opening of its new headquarters with an adjacent plant in Shanghai, China. The combined investment of EUR 72 million in the new site allows the 600 employees at the headquarters to supervise 12 Chinese locations and provide support to six production sites and sales offices in Japan, Korea and Thailand. The administration building is home to employees from three the Company’s business divisions. Purchasing activities, HR, and regional quality assurance is also directed from this location. The new headquarters is located adjacent to a modern production hall on a 40,000-square-meter site. The plant has a base area of 14,000 square meters and can produce 3.3 million components and systems annually. The Company plans to nearly double its production volume in the next two years, in part by expanding development in 48-volt applications. The Company is also working on new adjustment systems for the vehicle interior along with power opening and closing side doors. The region currently contributes approximately 20% of the Company’s turnover and is expected to contribute 25% by 2025, with turnover growing from EUR 1.2 billion to EUR 2.0 billion. (From a press release on April 21, 2017)