J. Eberspaecher GmbH & Co. KG Business Report FY ended Dec. 2013

Business Highlights

Financial Overview

(in million EUR)
  FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 Rate of change (%) Factors
Net Sales 2,916.4 2,826.5 3.2 1)
EBITDA 117.2 140.4 (16.5) -
Exhaust Technology
Sales 2,449.4 2,396.2 2.2 2)
Climate Control Systems
Sales 427.0 399.9 6.8 3)
Automotive Controls
Sales 39.9 30.4 31.3 4)

1) Overall
-In the fiscal year ended December 31, 2013, the Company recorded sales of EUR 2,916.4 million, an increase of 3.2% in sales over the previous year. The increase in sales was primarily due to contributions from the Exhaust Technology and Climate Control Systems divisions.

2) Exhaust Technology
-The Company's Exhaust Technology division's sales grew 2.2% to EUR 2,449.4 million in 2013. One of the factors leading to the sales increase was the growth in the commercial vehicle business due to the start of series production at the Company's Wilsdruff location. Another contributing factor was the increased proportion of monoliths that the Company sold.

3) Climate Control Systems
-Sales in the Climate Control Systems division experienced an increase of 6.8% from the previous year to EUR 427.0 million. While sales of bus AC systems decreased, increased revenue from electrical and fuel operated heaters more than offset the loss.

4) Automotive Controls
-In the Automotive Controls division, sales increased by 31.3% to EUR 39.9 million due to strong sales for on-board power supply stabilization system products to several German OEMs in the premium vehicle segment.


-The Company is boosting its involvement in the Russian market for vehicle heaters and climate control systems by taking over its previous joint venture company OTEM ZAO in Moscow. It has increased its shares from 50 to 100% and has changed the company name to CJSC Eberspaecher Climate Control Systems. The company still holds shares in OTEM-Siberia and OTEM-St. Petersburg. (From a press release on February 18, 2013)

Joint Ventures

-The Company and Shaanxi Wanfang Autoparts Co., Ltd., a subsidiary of Shaanxi Automobile Group Co., Ltd. signed a contract to establish a joint venture to produce aftertreatment systems for commercial vehicles in China. Shaanxi Automobile Group is the major shareholder of the joint venture with 51% of Eberspaecher Exhaust Technology Xi'an Co., Ltd. while the Company holds 49%. Production is scheduled to begin in 2014. By 2015, production is expected to reach an initial volume of approximately 100,000 exhaust systems for diesel and CNG engines per year. (From a press release on December 17, 2013)

-Mikuni Corporation announced that it would set up a joint venture with Eberspaecher Climate Control Systems International Beteiligungs-GmbH, the Company's subsidiary, in the area of automotive heaters. The two companies were expected to agree on the fifty-fifty joint venture, Eberspaecher Mikuni Climate Control Systems, in early March. The new company was capitalized at JPY 100 million, and was scheduled to be set up at Mikuni's Odawara Plant in Kanawaga Prefecture in April 2013. (From an article in the Nikkan Jidosha Shimbun on February 16, 2013)


Program to improve competitiveness at Neunkirchen facility
-The Company announced that an extensive restructuring program is planned over the next two years for its facilities in Neunkirchen, Germany, which currently employs approximately 1,950 workers. By comparative international standards, the cost structures and the organization of production at the location are no longer competitive. Planned measures include the cutting of approximately 300 jobs. (From a press release on June 6, 2013)


-The Company was honored by the Volkswagen Group Award in the category of Global Champion. (From a press release on June 20, 2013)


R&D Expenditure

(in million EUR)
  FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 FY ended Dec. 31, 2011
Total 138.0 134.0 120.1
% of Revenue 4.7 4.7 4.6

R&D Structure

-The Company has approximately 700 experts working in research and development across its various divisions.

R&D Facilities

-The Company has 11 research and development facilities:
  • Esslingen, Germany
  • Unna, Germany
  • Neunkirchen, Germany
  • Schwaebisch Gmuend, Germany
  • Herxheim, Germany
  • Renningen, Germany
  • Goppingen, Germany
  • Landau, Germany (not yet operational)
  • Paris, France
  • Novi, USA
  • Shanghai, China

R&D Activities

-In 2013, the Company's R&D activities focused on the following products and projects:
Exhaust Technology
  • Exhaust systems for passenger cars
  • Commercial vehicle solutions to meet Euro 6 emission standards
  • Active muffler system for both sound generation and noise reduction
  • Heat recovery system to recover excess heat from the exhaust system branch, and convert it into electrical or mechanical energy
  • Lightweight construction with custom-designed material or new system designs
Climate Control Systems
  • Fuel operated heating systems and accessories
  • Variety of operating units for pre-heaters
  • Diesel-fueled solid oxide fuel cell for commercial vehicles
  • Electrical heater for electric vehicles
  • Bus air-conditioning system improvements to cost optimization, efficiency, and weight reduction
Automotive Controls
  • On-board power supply stabilization systems
  • Fast electrical energy storage systems

Product Development

Hydronic 2 Comfort water heater
-The Company announced that it developed the Hydronic 2 Comfort, a new water heater, which significantly shortens the pre-heating phase and thus reduces fuel consumption and CO2 emissions by up to 30%. In contrast to conventional models, the Hydronic 2 Comfort does not heat up the entire cooling water circuit, which includes the engine, at the start of the heating phase. Rather, it only heats the relatively small circuit between the heater and the heat exchanger. In this way, both the exterior and interior of the vehicle are heated after a few minutes. (From a press release on July 16, 2013)

PTC Coolant electrical heater
-The Company developed the second generation of the PTC Coolant Heater. The heater features a weight of 2.4 kilograms, heating power of 7 kilowatts, and installation volume of approximately one liter, which allows it to be easily integrated into the heating circuit. (From a press release on July 16, 2013)

Starter Current Control module
-The Company has developed a new SCC (Starter Current Control) module for the protection of the starter battery when using start-stop systems. The compact SCC component is based on semiconductive power electronics and is fixed directly on the pole clamp to limit current fluctuations. The Company also developed a 3 kilowatt converter for plug-in hybrids from 12 to 48 volts with a multi-stage on-board network and several electrical energy storage devices. This provides the required power for 48 volt large electrical loads – such as those required by electrical turbos, brake boosters, and steering systems. (From a press release on July 15, 2013)

Investment Activities

Capital Expenditure

(in million EUR)
  FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 FY ended Dec. 31, 2011
Total 134.9 114.1 109.5

Investments in Germany

-In April 2013, construction of a new plant in Landau began. The plant in Landau would consolidate functions of various plants throughout the region. At the end of 2013, production had been transferred from Kandel, Germany to Landau. By the first quarter of 2014, all company functions were moved to Landau.

Investments outside Germany

-The Company announced that its new Asian headquarters, together with its first exhaust technology manufacturing site in China, was built in the industrial district of Shanghai-Jiading. Initially, the 8,000-square-meter plant will produce catalytic converters, manifold-cat modules and mufflers for passenger cars. Complete exhaust systems will be manufactured for a local commercial vehicle engine maker. With the expansion of the product range, approximately 90 workers will be employed by 2014. The plant expects to hire 400 more workers in the future due to the strengthening of on-site development expertise which is already being planned. Additionally, a 4,400-square-meter technical center with will adjoin the new production plant in the medium-term. (From a press release on June 14, 2013)