ElringKlinger AG Business Report FY2010
|(in million euros)|
|FY2010||FY2009||Rate of Change (%)||Factors|
|Earnings before Taxes||94.0||49.4||90.3||-|
-With the exception of Industrial Parks, each of the Group’s business segments contributed to the increase in sales achieved in 2010. One of the best performers in this respect was the Original Equipment segment, which maintained the steady recovery of the previous year. Within this segment, sales were driven by strong demand from the automotive industry. Sales of commercial vehicle components showed some improvement, although capacity utilization remained well below pre-crisis levels.
-Several new products start-ups helped the Original Equipment segment to deliver a percentage increase in revenue for 2010 that exceeded the rise in global vehicle production. This improved performance was partly due to the Group’s strong focus on the emerging markets.Compared to the previous year, when sales remained weak, revenue for the Original Equipment segment was up 188.7 million euro at 606.9(418.2) million.
Acquisition-The Company will acquire a 66.7 percent interest in Hug Engineering AG of Switzerland. Hug Engineering develops and manufactures exhaust gas purification systems. Hug diesel particulate filter systems will be combined with the ElringKlinger CleanCoat coating material for soot reduction and will be used within the commercial vehicle sector. The agreement is expected to be closed by the second half of 2011. (From a press release on April 6, 2011)
-Freudenberg Group has handed over its OEM cylinder head and exhaust gasket business to ElringKlinger AG with effect from January 1, 2011. These products are produced in three European countries: Eurasburg and Geretsried-Gelting (Germany), Chamboret and Nantiat (France), and Settimo (Italy). (From a press release on January 5, 2011)
Awards-The Company has been honored by the MAN Commercial Vehicle Group of Germany with the "Trucknology Supplier Award 2009". ElringKlinger supplies MAN primarily with cylinder-head gaskets and plastic housing modules, but also with specialty gaskets and shielding components. The company has also been nominated as a supplier to MAN's facilities in South America. (From a press release on June 11, 2010)
-The Company has received the Daimler AG's Key Supplier Award for 2009. The company was presented with the award in the "Powertrain" category of the commercial vehicle segment for its plastic housing modules. (From a press release on March 19, 2010)
|(in million euros)|
R&D Structure-As at December 31, 2010, the Company employed 316 staff members in the R&D area.
R&D Activities-One of the main areas of focus in 2010 was the expansion of development activities in battery and fuel cell technology. In particular, the Group benefits from the trend among almost all customers towards hybrid concepts, i.e. combining fuel-efficient combustion engines with an electric drive. In addition to components for combustion engines, the Company now also supplies additional products for battery technology.
|(in million euros)|
Investment Activities-In 2010, 55.4% of capital expenditure outflows were directed at the Group’s subsidiaries and joint ventures, predominantly with a view to expanding production capacity and for new tools in preparation for impending product start-ups. The main focus of investment was on Asia, North and South America and ElringKlinger Kunststofftechnik GmbH in Bietigheim-Bissingen. Total capital expenditure on subsidiaries and joint ventures in fiscal 2010 stood at 74.4(49.5) million euro.
Investment Outside Germany<China>
-The construction of new factories in Changchun and Suzhou in China has now been completed, almost doubling manufacturing capacity in this region. In total, the Group invested 14.1 million euro in its Chinese sites over the course of 2010. The new production building at ElringKlinger China Ltd. In Suzhou actually commenced full operation in 2010, while at the end of the year Changchun ElringKlinger Ltd. In Changchun(North China) was in the final stages of moving to a new and much bigger production facility with an attached administrative section. The factory is due to open in the spring of 2011, making the successful conclusion of the Group’s largest expansion of manufacturing capacity to date. In the meantime, ElringKlinger has received several new orders in China, primarily from local Chinese customers, thus ensuring further uninterrupted growth in the region.
-At ElringKlinger U.S.A., Inc. in Buford, around 6.4 million was invested in new production equipment and tool technology. The main focus here was on new projects in the area of thermal shielding involving U.S. Car and engine makers. In order to reduce costs, produce in closer proximity to customers and avoid foreign exchange losses, cylinder-head gasket assembly was relocated from the Group’s Canadian subsidiary in Leamington to Buford. Stamping capacity was also increased, as a result of which, metal layers will be stamped directly on site rather than in Dettingen from 2011 onwards.
-In the South American market, it became necessary to expand local production capacity in response to high demand for vehicles and new orders. To this end, technical equipment and tools worth 7.4 million were purchased for the Group’s Brazilian subsidiary in Piracicaba. This allowed ElringKlinger do Brasil Ltda., Piracicaba, to increase its production of metal-layer gaskets and heat shields and set up a new production line for plastic housing modules.