HUTCHINSON S.A. Business Report FY ended 2014

Recent Years

Financial overview

(in million EUR)
FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 Rate of change
Net Sales 3,462 3,280 5.5 1)


1) Net Sales
-In 2014, the Company's sales were EUR 3,462 million, up 5.5% year-on-year due to the strong performance of the world's automotive markets, especially German and Asian manufacturers.

Business Restructuring

-In July 2013, the Company divested 30% of its automobile brake hose business in Spain (Palamos) through the creation of a joint venture with Japanese company Nichirin, one of the world leaders in this segment. It is capitalized at approximately EUR 8 million to 10 million (approximately 800 million to 1 billion yen), of which 30% will be provided by Nichirin and 70% by the Company. The joint venture unit will hire 170 people to manufacture and sell brake hoses, targeting sales of EUR 18 million (approximately 1.8 billion yen) in the year ending in March 2014.


-In November 2013, the Company was awarded as a premium supplier from Continental AG and Schaeffler AG.

Plant Closure

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

R&D Expenditure

(in million EUR)
FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Overall 171 N/A 162

-The Company dedicates 5% of its sales revenue toward group research and development every year.

R&D Structure

-The Company has the nerve center of the Company's research and development in Montargis, France, along with 27 technical centers worldwide. 175 people are conducting research and development in Montargis facility.

-In 2014, the Company established the CTeC (Composite Technical Center) in Chalette-sur-Loing, next to Montargis where the Company's research center locates. This innovation center is dedicated to the development of new composite products, materials and processes. 50 personnel will be employed by the end of 2014.

Product Developments

Precision sealing system for transmission
-The Company's sealing systems including duplicate-molded pistons for the hydraulic brakes and clutches are equipped with ZF's 8-speed automatic transmission.
-This system made 8-speed automatic transmission optimized by limiting its weight and number of components, along with a 9% reduction in fuel consumption compared to the previous 6-speed version.

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"

Capital Expenditure

(in million EUR)
FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Overall 109 N/A 89

Development Outside France

-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.

-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.