ElringKlinger AG Business Report FY ended Dec. 2014
Financial Overview |
(in million EUR) |
| FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013* | Rate of Change (%) | Factors | |
| Overall | ||||
| Sales | 1,325.8 | 1,150.1 | 15.3 | 1) |
| EBITDA | 233.4 | 238.6 | (2.2) | - |
| OE Segment | ||||
| Sales | 1,089.7 | 925.9 | 17.7 | 2) |
*Figures for FY ended Dec. 2013 is restated in accordance with IFRS 11.
Factors
1) Overall
-Sales revenue grew by 15.3% year-on-year. Organically, i.e. eliminating the effects of foreign currency translation and scope changes, sales revenue increased by 11.2%, despite the malaise afflicting vehicle markets in both Brazil and Russia.
2) OE Segment
-Sales revenue grew by 17.7% year-on-year. Without the effects from the change to the consolidation method applied to ElringKlinger Marusan Corp., the OE segment would have grown by 12.2%.
Change of Consolidation method
-As of Dec. 31, 2013, ElringKlinger Marusan Corporation was fully consolidated as a result of the assumption of control completed.
Acquisitions
-The Company has acquired all interests in U.S. automotive supplier M&W Manufacturing Co., Michigan, thereby significantly expanding its market position as a supplier of spacer plates for automatic transmissions - in North America and worldwide. The acquisition of M&W is seen as an important milestone in the expansion of the Company's Specialty Gaskets division. The division primarily develops and produces turbocharger gaskets, high temperature gaskets and components for exhaust gas recirculation (EGR) and exhaust systems as well as control plates for automatic and dual-clutch transmissions. M&W employs around 100 people at its two company sites at Warren and Roseville, Michigan. In addition to supplying the North American market, M&W has started to increasingly serve the Chinese market from its U.S. production site. (From a press release on February 13, 2015)
Awards
-The Company has been awarded "ZF Supplier Award 2014" by ZF Friedrichshafen AG. The Company supplies ZF with specialty gaskets, plastic modules, thermal shielding parts, as well as control plates for automatic transmissions. (From a press release on November 26, 2014)
-In 2014, the Company has been awarded "Innovation Award" from ZF Frieedrichshafen AG for the novel design of a "sandwich" spacer plate.
R&D Expenditure |
(in million EUR) |
| FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013* | FY ended Dec. 31, 2012 | |
| Overall | 57.3 | 56.7 | 57.3 |
| % of Sales | 4.3 | 4.9 | 5.1 |
*Figures for FY ended Dec. 2013 is restated in accordance with IFRS 11.
-Most R&D spending for FY ended Dec. 2014 was directed at the Company's core divisions (Metal gaskets, Shielding technology, Plastic housing modules) and at Exhaust gas purification.
R&D Structure
-As of Dec. 31, 2014, the number of people employed in the Company's R&D-related departments was 538 (2013: 498).
Co-development
-The Company has teamed up with GKD Gebr. Kufferath AG of Germany to work on integrated sealing and filtration solutions in the field of exhaust gas recirculation. The two companies have already concluded a strategic cooperation agreement to pursue this project. While GKD, as a manufacturer of industrial mesh products, will be applying its expertise in the field of filtration media and sieving devices made of metal mesh, ElringKlinger will be contributing its specialist knowledge in the manufacture of sealing solutions and their integration within complex exhaust gas recirculation (EGR) systems. Customers have already been supplied with the first prototypes. Viability testing for serial production readiness is currently underway. Production of the first jointly developed components is expected to commence in 2015. (From a press release on February 19, 2014)
Product Development
Hybrid Hydroforming Technology
-The Company received its first large-scale order to make innovative polymer-metal hybrid components, in addition to supplying the required tooling technology. The new production method combines metal hydroforming with plastic injection molding in a single step. From 2015, the Company will supply front-end-carriers and cockpit cross-car beams made using the new hybrid hydroforming technology. The process combines a high level of rigidity with a weight saving of around 25%. Production will be in Leamington plant in Canada and Suzhou plant in China.
Organo Sheets
-Organo sheets contain no metal materials, but rather continuous woven fiberglass embedded in a polymer matrix. To make a part out of organo sheets, the fiberglass-polymer semi-finished part is heated, reshaped and overmolded with plastic. The sheets have potential to make weight savings of about 30%.
Capital Expenditure |
(in million EUR) |
| FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013* | FY ended Dec. 31, 2012 | |
| Overall | 163.1 | 125.6 | 114.4 |
*Figures for FY ended Dec. 2013 is restated in accordance with IFRS 11.
-FY ended Dec. 2014, the investments were directed at the establishment or expansion of manufacturing capacity in preparation for new series production ramp-ups.
Capital Expenditure by location |
(in million EUR) |
| FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013* | FY ended Dec. 31, 2012 | |
| Germany | 72.3 | 52.8 | 66.1 |
| Rest of Europe | 29.7 | 28.1 | 19.4 |
| NAFTA | 21.5 | 19.4 | 8.5 |
| Asia-Pacific | 35.7 | 17.9 | 17.4 |
| South America and others | 3.9 | 7.5 | 2.4 |
| Total | 163.1 | 125.6 | 113.9 |
*Figures for FY ended Dec. 2013 is restated in accordance with IFRS 11.
- Production of hybrid polymer-metal components is set up in Leamington plant in Canada and Suzhou plant in China.
- The Company has completed a new engine gasket plant in Gumi, Gyeongsangbuk-do, Korea. The Company invested USD 10.10 million in this facility that was built on a 26,000-square-meter-plot.