ElringKlinger AG Business Report FY2008
|in million Euros||FY2008||FY2007||Change
|Earnings before Taxes||60.0||114.9||(52%)||-|
|Sales||476.5||435.5||9.4%||- OE segment accounted for 72.4% of the Group sales in FY2008, up on FY2007's 71.7%.
- Due to the revenue contributions made by recently acquired SEVEX as well as ElringKlinger Marusan Corp., the majority of which are attributable to OE segment sales, segment revenue rose by 9.4%.
- Excluding the effects of acquisition, the segment was unable to match FY2007 sales performance due to the production reduction in Europe and North America.
Business Overview of OE Segment (FY2008)
- The decline in automobile production figures in the 2nd half of the year had a more pronounced effect on the Cylinder-Head Gaskets division than on other areas of business within the Company
- The trend towards designing increasingly fuel-efficient small-displacement engines (downsizing) had a positive effect on sales volumes with Specialty Gaskets division and Shielding Technology division.
- In the area of Specialty Gaskets division, rising sales volumes of transmission control components for AT as well as high-temperature gaskets for turbochargers contributed to revenue streams.
- The Elastomer Technology/Modules division generated further organic growth thanks to the introduction of weight-reduced plastic modules.
- In Apr. 2008, the Company has closed a definitive agreement to acquire Swiss manufacturer of thermal and acoustic shielding systems SEVEX AG, based in Sevelen. Alongside the Swiss parent company, ElringKlinger has acquired the US subsidiary SEVEX North America, Inc., Buford (Georgia), as well as SEVEX Asia, based in Suzhou, China. The SEVEX Group had forecast sales of CHF 95 million (EUR 59 million) for the financial year as a whole. (From a press release on Apr. 17, 2008)
-In Mar. 2008, the Company announced that it acquires the remaining stake of 49.0% in the Spanish subsidiary ElringKlinger, S.A., Reus, effective from March 07, 2008. In addition, the Company purchases the remaining 10% interest in ElringKlinger Sealing Systems, S.L., also based in Reus. In doing so, the Company has underlined its commitment to the strategy of acquiring in full any minority interests held in Group entities. (From a press release on Mar. 10, 2008)
- In May 2008, the Company has increased its stake in Japanese gasketing manufacturer Marusan Corporation, Tokyo, from 10% to 50%. The Marusan Corporation and its three affiliates produce cylinder head gaskets, specialty gaskets and thermal shielding modules for the automobile and truck industry. In March 2004, the Company and Marusan Corporation had founded the ElringKlinger Marusan Corporation, a joint venture that has been focusing on R&D and sales for the Japanese and other Asian markets. (From a press release on May 2, 2008)
|(in million EURO)||2008||2007||2006|
- There are 293 members were employed in the R&D area. The R&D costs in relation to sales remained at 5.5%.
-The Company concentrated its R&D activities at German sites within the Group and mainly focused on the facility in Dettingen/Erms.
- The majority of development costs went into projects associated with New Business Areas such as diesel particulate filters, fuel cell, and battery technologies as well as the upgrade of existing technologies for new applications.
Research and Development Activities
New Elastomer Coating
The Company developed a new elastomer coating with enhanced stability, which further improves the performance and service life of the sealing system at high pressures and temperatures.
Sealing Solutions for Turbochargers
The focus was on new concepts for particularly heat-resistant alloys and efforts to optimize the gasket geometry with the in-and out-let as well as the interior casing of the turbocharger.
SCR module for Cars
The Company together with a German manufacturer developed a combined module that seals and shields (thermal/mechanical) SCR direct injection system used in automobiles.
The Company in recent years focused its work on the integration of screen structures used for the filtration of particles occurring in AT control systems. The Company developed microbead gaskets for transmission control systems which help to increase the operational efficiency of ATs.
In collaboration with a German vehicle manufacturer, the Company developed a multifunctional shielding system with an integrated exhaust manifold gasket for thermal and acoustic shielding.
In 2008, the Company, working in collaboration with a battery manufacturer, launched a program aimed at developing initial product concepts for batteries. The development team is currently working on components for bipolar lead-acid batteries to be used primarily in micro- and mild-hybrid vehicles.
Elastomer Technology/Modules focused on weight-reduced plastic modules with integrated sealing systems. The overall weight of components can be reduced by replacing metal-based parts with thermo-plastics; this in turn helps to reduce fuel consumption.
|(in million EURO)||2008||2007||2006|
The investment in 2008 was directed primarily at replacement and expansion at the Company's sites in Germany and Asia.
Investment Activities of OE Segment
- Within Cylinder-Head Gasket division, several assembly lines were expanded in preparation for new projects.
- The Specialty Gaskets division further expanded its expertise within the area of exhaust technology and purchased an additional stamping system, a continuous flow drier and test stand equipment
- At its German site in Langenzenn, the Shielding Technology division invested in extending its manufacturing capacity to include two new production lines for heat shields.
- The Elastomer Technology/Modules division bought two assembly lines required for the production of plastic cam covers. A new cleaning and coating unit was purchased for metal-elastomer products.
- Within the New Business Areas division, investments were centered around machinery and test stand technology for the purpose of raising the level of automation in bipolar plate and fuel cell stack production.
- In Apr. 2008, the Company inaugurated their first manufacturing facility in India, located at Ranjangaon off Pune. The plant has been set up at an investment of 5.0 million Euros and will have a capacity to produce several millions gaskets. The plant will manufacture gaskets for powertrain applications such as engines and transmissions especially focused on newly developed low emission gasoline as well as diesel engines. This manufacturing facility has been set up on an area of 60,000 sq. mts. and has a built up area of 5,600 sq. mts. The Plant will cater to the needs of Maruti Suzuki, Ford, Mahindra & Mahindra, Ashok Leyland, Fiat-Tata, Piaggio, MAN- Force and other automotive manufacturers & suppliers. (From a press release on Apr. 12, 2008)