ElringKlinger AG Business Report FY2009
|(in million euros)|
|FY2009||FY2008||Rate of Change (%)||Factors|
|Earnings before Taxes||49.4||60.0||(17.7)||-|
-The slump experienced by vehicle markets worldwide had a severe impact on the Company’s Original Equipment segment. The decline in revenue from components destined for the commercial vehicle market was particularly pronounced. Indeed, at times revenue generated within this area fell by as much as 50% compared to the level achieved a year ago.
-Within the Elastomer Technology/Modules division, which benefited from several new ramp-ups relating to plastic housing modules, the decline in revenue was less severe than the average downturn recorded in the Original Equipment segment as a whole.
-The Shielding Technology division expanded compared to the previous financial year, with several new projects, particularly at ElringKlinger Abschirmtechnik (Schweiz) AG, at ElringKlinger USA, Inc. and at ElringKlinger China Ltd., providing fresh impetus.
-Customer demand picked up at a steady rate over the course of the second quarter and more noticeably in the second half of the year. This is illustrated by Group sales in the Original Equipment segment over the course of the year, which grew from EUR 87.3 million in the crisis-stricken first quarter to EUR 122.0 million in the fourth quarter of 2009.
Acquisition-Within the key growth market of China, in the first half of 2009 the Company acquired an additional 10.0% interest in the subsidiary Changchun ElringKlinger Ltd. from the state investment company State Machinery, Electronics, Light and Textile Industry Investment Corporation, Changchun. The increase in the Company’s ownership interest to now 88.0% was executed effective from June 30, 2009. The purchase consideration was EUR 2.2 million. The enterprise supplies the Chinese automotive industry with cylinder-head and specialty gaskets. In addition, the portfolio includes thermal and acoustic shielding components and plastic housing modules used in engines, transmission and exhaust tracks.
-Effective from October 29, 2009, the Company acquired a 90% interest in the Turkish automotive supplier Ompas A.S. based in Bursa. The former owner family will retain an interest of 10%. As a result on the acquisition, the Company now has its own production company in Turkey’s expanding automotive market. The purchase price for the interest acquired was EUR 0.8 million, plus existing liabilities at Ompas. Employing 45 people, the company generated sales revenue of approx. EUR 3 million in 2008. The core products manufactured by Ompas are heat shields for the thermal and acoustic shielding of a vehicle’s engine, transmission and exhaust tract. Among the company’s customers are BMC, vehicle producer and Fiat importer Tofas as well as Ford Otosan. The new enterprise now trades under the name of ElringKlinger TR Otomotiv Sanayu ve Ticaret A.S.
|(in million euros)|
R&D Structure-As at December 31, 2009, the Company employed 281 staff members in the R&D area.
R&D ActivitiesGovernment-funded programs
-In 2009, the Company received EUR 3.6 million in grants from government-funded programs for new development projects in the area of fuel cell and battery technology.
Car SCR adapter module
-In 2009 an adapter module for an SCR (Selective Catalytic Reduction) injection system to be used in passenger vehicles for the purpose of exhaust cleaning was developed to SOP level. This new products was developed in response to the introduction of the Euro 6 standard in 2014, which requires a further reduction of nitrogen oxide emission. The Company’s developed adapter module facilitates optimum processing of the injected urea solution, which neutralizers the nitrogen oxides into nitrogen and water. Within this area, the Company has benefited in particular from existing expertise with regard to nitrogen oxide reduction in truck exhaust tracts. This facilitated rapid development of the new components.
-The main focus of development work within the area of shielding technology is on combined systems capable of providing protection against extreme temperature as well as absorbing vibration noise. Working in collaboration with a European automobile manufacturer, the Company designed a multifunctional shielding component featuring an integrated exhaust manifold gasket for thermal and acoustic shielding. By reduction thermal losses, it facilitates faster catalytic activation, which in turn provides tangible benefits in terms of HC and NOx exhaust emission. In helping the engine reach its optimum operating temperature much faster, the shielding system is capable of making a contribution when it comes to reducing fuel consumption.
|(in million euros)|
Investment in Germany-The new plant built for ElringKlinger Kunststofftechnik GmbH at its site in Bletigheim-Bissingen was one of the principal investments in FY2009. With a total investment of approximately EUR 12.0 million, the existing production premises at this site have been expanded significantly over the last two years. These measures have also included the installation of initial production lines to process the injection-moldable PTFE that the Company is marketing as Moldflon(R).
Investment Outside Germany-Within the Asian region, the main focus of investments was on expanding capacity at the two Chinese sites operated by the Group. In view of the dynamic level of growth in China, the existing sites were working close to maximum capacity in 2009. In response to this situation, work commenced on the construction of a much larger facility for Changchun ElringKlinger Ltd., located at the Changchun site in the north of China, while ElringKlinger China Ltd. in Suzhou, within the Shanghai region, pressed ahead with the construction of an additional plant.
-In preparation of the starts of production relating to newly developed products, the Company invested in an injection-molding system for the production of lightweight plastic housing modules at the facility in Brazil in 2009. At the former SEVEX subsidiary ElringKlinger USA Inc. in Buford, USA the Group made further investments in machinery and equipment in preparation of the production start-ups scheduled for new thermal shielding components to be supplied to US truck and engine manufacturers, as well as in additional production automation.
-At ElringKlinger Abshirmtechnik (Schweiz) AG, the focus in 2009 was on expanding overall production floor space and establishing a storage facility for the provision of production tools used in operations.