Kolbenschmidt Pierburg AG Business Report FY2010
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|FY2010||FY2009||Rate of Change
Strong recovery in sales
-Pierburg division: The division rose by 31% from 392 million euros in 2009 to 515 million euros in 2010. This improvement is essentially due to the economic recovery and to higher demand for diesel vehicles. In addition, new product launches and increased production in product groups that are seeing rapid growth, such as EGR and solenoid valves, contributed to the increase in sales. Sales were generated in India for the first time through the production of EGR valves, which began at the site in Pune during 2010.
-Pierburg Pump Technology division: The improved economic situation had a positive impact on sales of all product groups in the division, which achieved sales of 376 million euros in 2010, compared with 293 million euros in 2009. The first sales were generated by the accelerated production of pumps in India.
-KS Kolbenschmidt division: The division recorded sales of 605 million euros in 2010, an increase of 139 million euros (+30%) on 2009. While there was a significant general improvement in the economic situation in the automotive sector compared with the crisis year of 2009, demand for large-bore pistons fell by 27%, largely owing to the weakness of shipbuilding, rail transport and power plant construction sectors. Excluding business with large-bore pistons, the division recorded an increase in sales of 41%. Demand for pistons for passenger car gasoline engines and commercial vehicle engines was up year-on-year (+39% and +57% respectively).
-KS Aluminium-Technologie division: The division achieved sales of 160 million euros in 2010, compared with 119 million euros in 2009 (+35%). This substantial increase is mainly due to the disproportionately large rise in sales of serial products, which grew by 41%. Despite strong growth in die casting, low-pressure casting remained the product group with the highest sales, while high-pressure casting and supplies of spare parts produced using a squeeze-cast process accounted for only a small proportion of total sales.
-KS Gleitlager division: The division benefited from positive developments in the sector. The division increased its sales year on year by 61 million euros to 187 million euros (+48%). In addition to metallic plain bearings, which saw sales up by 35%, and Permaglide products, of which sales rose by 60%, demand was particularly high for products in the continuous casting group. The year-on-year rise of 55% in sales of this product group was based on larger sales volumes and on the passing on of much higher copper prices to customers.
-Motor Service division: The division continued its growth course in 2010.
PartnershipPierburg Pump Technology has made an agreement with Mikuni Corporation of Japan, regarding the formation of a sales, development and production joint venture for electric coolant and variable oil pumps destined for the Asian markets. The new joint venture will be 51 percent owned by Pierburg Pump Technology, with Mikuni holding the remaining stake. In view of future engine concepts for hybrid or electric vehicles, and the reduction in consumption of conventionally powered engines, variable electrical pumps for oil and water are becoming increasingly important. The corporation will lead to additional market opportunities for both companies with Japanese manufacturers and on the Indian and Chinese automotive markets. (From a press release on November 12, 2010)
Contracts-Influenced by the positive trend on the automotive markets, the Company recorded an order intake of 1,997 million euros in 2010, exceeding the previous year's figure by 501 million euros or 33%.
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R&D Structure-In 2010, the Company set up a central department for research and technology, The department coordinates the development activities of all divisions.
-Focal points include the reduction of consumption and CO2, the fulfillment of strict emissions standards such as Euro 6, the implementation of more stringent environmental requirements and continued cost reductions through improvements to products and optimized manufacturing processes.
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Investments in Germany-Pierburg division: The division invested in Germany in production facilities for new actuator and cooler projects and also expanded its capacity for the production of electrical divert-air valves.
-Pierburg Pump Technology division: Capital expenditure in Germany focused on expanding capacity in the growth areas of water circulation and electrical coolant pumps.
-KS Aluminium Technologie division: Investmen-ts were made in the expansion of the gravity die-casting activities in Neckarsulm. As part of a customer project, funds were invested in machinery and equipment at the low-pressure foundry in order to expand capacity.
Investments outside Germany-Pierburg division: The division increased its production capacity of EGR systems in the U.S.
-Pierburg Pump Technology division: The French site purchased new tools for customer projects. In Italy, capital expenditure were used to expand capacity for the production of oil and water pumps.
-KS Kolbenschmidt division: Investments were made at sites in the USA and Japan in the production of pistons for gasoline engines.