Freudenberg & Co. KG Business Report FY ended Dec. 2012

Business Highlights

Financial Overview

(in million EUR)
  FY ended Dec. 31, 2012 FY ended Dec. 31, 2011 Rate of change (%) Factors
Sales 6,322 5,992 5.5 1)
Operating Profit 538.0 516.7 4.1 2)

1) Net Sales
-In 2012, the Company's net sales increased 5.5% or EUR 329.8 million compared to 2011. Sales increased in almost all business areas.  

2) Operating Profit
-Operating profits in 2012 increased by EUR 21.3 million compared with 2011 to EUR 538.0 million. This increase is due to a one time income contribution from Vibracoustic's joint venture with Trelleborg. Without the contribution from the joint venture, profit from operations would have been below last year's level.


-A subsidiary of the Company, Freudenberg Sealing Technologies, acquired 50 percent of the shares of the Schneegans group. The company, which will be renamed Schneegans Freudenberg GmbH, has production facilities in Emmerich, Germany; and Losenstein, Austria. The Schneegans group has a total workforce of approximately 240 employees and generated sales of approximately EUR 45 million in 2011. With the joint venture, the Company is making an investment in multi-component injection molding production technology and plastic products, particularly for the automotive industry. (From a press release on October 10, 2012)

-Freudenberg Filtration Technologies India Pvt. Ltd., a subsidiary of the Company, acquired Pyramid Filters Pvt. Ltd., taking effect on April 1, 2012. Whereas Freudenberg Filtration Technologies India supplies industrial and automotive filter elements and systems, Pyramid Filters develops air filter elements and systems for cleanroom applications in the pharmaceutical, medical, food and chemical industries. (From a press release on March 5, 2012)


-The Company announced that it has closed the sale of its precision molded brake parts activities to ContiTech Vibration Control GmbH. The businesses sold include operations in Andrezieux, France; as well as the molded brake parts in Oberwihl, Germany; and Queretaro, Mexico, and marks the completion of the Company's multi-year restructuring of its portfolio in the automotive business. (From a press release on June 15, 2012)

Joint Ventures

-The Company and Trelleborg AB announced that they have completed the formation and started operations of the joint venture in antivibration solutions for light and heavy vehicles, TrelleborgVibracoustic. The joint venture comprises of Trelleborg's earlier operation in antivibration solutions and the Company's corresponding operation, Vibracoustic. At year-end 2011, the combined annual sales were approximately SEK 13.4 billion (EUR 1.55 billion), of which Trelleborg Automotive accounted for approximately SEK 7.1 billion (EUR 819 million). (From a press release on July 3, 2012)


-In 2012, TrelleborgVibracoustic, the newly established joint venture between the Company and Trelleborg AB, recorded an increase in new orders. Notably, TrelleborgVibracoustic will supply the Volkswagen Group with transmission mounts and torsional vibration dampers for the MLB EVO platform starting in 2014. The company has also received a contract to supply air springs for BMW's "35 up" platform.


R&D Expenditure

(in million EUR)
  FY ended Dec. 31, 2012 FY ended Dec. 31, 2011 FY ended Dec. 31, 2010
Total 217.2 205.4 181.3

R&D Structure

-As of December 31, 2012, the Company has 2,244 employees working in research and development across all of its locations, including 1,371 employees in Germany.

-A subsidiary of the Company, EagleBurgmann Pvt. Ltd. expanded its production plant built in 2009 in Pune to include a new R&D center. This test center was built to test seals for refineries, petro-chemical and chemical plants, as well as power stations and numerous other industries. The building was scheduled to be completed in the fall of 2012. (From a press release on June 19, 2012)

Product Development

-A subsidiary of the Company, Freudenberg-NOK Sealing Technologies is introducing a line of micro-seals to its North American customer base. The seals are expected to have broad applications in the medical, chemical and automotive industries, among others. The new line will use perfluoroelastomer, which is more elastic and has a longer life compared to polytetrafluoroethylene, the material that most micro-seals are currently made of. (From a press release on March 28, 2012)

<Gas-lubricated mechanical seals>
-Freudenberg Sealing Technologies, a subsidiary of the Company, began development work on gas-lubricated mechanical seals for vehicles. These seals cut carbon dioxide emissions by up to 0.9 grams, bringing emissions down to less than 0.1 grams per kilometer. 

Investment Activities

Capital Expenditure 

(in million EUR)
  FY ended Dec. 31, 2012 FY ended Dec. 31, 2011 FY ended Dec. 31, 2010
Overall 322.1 305.9 240.1


-The Company will invest EUR 1.5 billion in property, plant, and equipment over the next five years - with 30 percent of this figure earmarked for Germany. (From a press release on April 4, 2012)

Investment outside Germany

-The Company announced that it will set up a new plant at its Mysore site in India for its subsidiaries, Chem-Trend Chemicals Co. Pvt. Ltd. and Kluber Lubrication India Pvt. Ltd. By 2016, the Company will have invested around INR 1.3 billion (EUR 18 million) in the new production plant, which covers an area of 40,000 square meters. An additional 9,000 square meter plot of land was acquired specifically for the new plant. (From a press release on June 19, 2012)

-The Company has expanded its global filter production network through the construction of a new production facility in Chengdu. The new facility is situated at Xindu Industrial Park, Chengdu and has a total space of 12,000 square meters. Production of engine air intake filters and cabin air filters was scheduled to start at the beginning of 2013. (From a press release on May 15, 2012)

-The Company announced that its Taiwanese subsidiary Freudenberg Far Eastern Spunweb is making an investment in a new production line for PET spunlaid nonwovens in Taiwan. The Tayuan facility will serve customers in the markets for carpet tiles, automotive interiors, filters and construction. The new production line scheduled for completion in 2013 will increase capacity in Taiwan by more than 10,000 tons per year. (From a press release on April 12, 2012)

<North America>
-The Company plans to expand its production of perfluoroelastomer micro-seals from its two manufacturing sites in Europe to two additional Special Sealing Products Division manufacturing sites in North America in 2013. (From a press release on March 28, 2012)