[Gen-AI Analysis] HUTCHINSON S.A. Business Report FY ended 2012 - MarkLines Automotive Information & Gen-AI Platform

HUTCHINSON S.A. 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
Net Sales	3,170	2,989	6.1	1)

Factors

1) Net Sales
-In 2012, the Company's sales were EUR 3.17 billion, up 6.1% compared to 2011. Sales for the automotive business increased 5% due to significantly increased sales on the North American market and increased sales on the Latin American and Chinese markets. Sales in Europe fell slightly (3%) compared to 2011.

Joint Venture

-In 2012, the Company announced that it will establish a joint-venture company with Nichirin Co., Ltd., a Japanese automotive hose supplier. The new company, Hutchinson Nichirin Brake Hoses, S.L., will be formed in January 2013 based on the brake hose unit of Palamos Hutchinson, S.A., the Company's wholly owned subsidiary in Palamos, Spain. It will be capitalized at approximately EUR 8 million to 10 million, of which 30 percent will be provided by Nichirin and 70 percent by the Company. The joint venture unit will hire 170 people to manufacture and sell brake hoses, targeting sales of EUR 18 million in the year ending in March 2014.

Divestitures

-In 2012, the Company announced the divestment of 30% of its automobile brake hose business in Palamos, Spain through the creation of a joint venture with Japanese company Nichirin, one of the world leaders in this segment.

Plant Closure

-In late 2012, the Company closed its Oyartzun production plant in Spain.

R&D

R&D Expenditure

(in million EUR)

	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011	FY ended Dec. 31, 2010
Overall	N/A	153	127

Product Developments

Windshield Seal
-Seal forming the interface between the dashboard and the windshield, attenuating noise from the engine compartment.
-It combines ease of assembly on the dashboard, significantly reducing assembly times and risks of work accidents.
-TPE seal is lightweight, recyclable and gives very good results during aging.
-Installed vehicle: "Peugeot 407" and "Peugeot 207"

Frame seal
-Seal forms the interface between the roof and the opening roof panel. It reduces aerodynamic noise while running and extends the design line.
-Its TEKSKIN textured varnish coating prevents parasite noise (squealing, squeaking, etc.).
-Installed vehicle: Renault "Megane", "Clio", "Laguna"

Dashboard cowl vent grille seal
-Seal fits onto the cowl vent grille and provides the finish between the cowl vent grille and the windshield.
-It is easily fitted and the addition of a sliding part at the end of the lip makes it possible to assemble the cowl vent grille on the vehicle without turning the lip over. This function eliminates one operation on the final client's assembly lines.
-Installed vehicle: Toyota "Yaris phase II"

Investment Activities

Capital Expenditure

(in million EUR)

	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011	FY ended Dec. 31, 2010
Overall	N/A	80	60

Development Outside France

<Romania>
-In 2011, the Company expanded the site in Brasov, Romania in order to deal with the increase in its transfers of automotive activities in Romania. An operational extension of 4,000 square meters will be added in December 2011 to the existing 6,000 square meter plant and will host Sealing System activities.

<Tunisia>
-In October 2010 the Company inaugurated a new plant in Sousse, Tunisia. The plant, with a surface area of 12,700 square meters is centralized in the aerospace industry but will also produce some specialities for the automotive industry.