Sogefi Business Report FY2006

Business Highlights

Financial overview

in million Euros FY2005 FY2004 Rate of change Brief
Consolidated Sales revenues 1,023.4 966.1 5.9%

(See factor 1 below)

Operating income 105.6 91.5 15.4%

(See factor 2 below)

Filter division
Sales 518.5 514.6 0.8%

The fall in the European market amounted to Euro 10.8 million; whereas Mercosur achieved a sales increase of 28.4%, in particular due to increased original equipment sales.

Operating income 56.7 58.8 -3.5%
Flexible Suspension Components and Precision Spring Division
Sales revenues 504.9 451.6 11.8%

All geographic areas improved their revenues, mainly due to increased prices in Europe, while significant increases in sales volume were recorded in the South American market and the stabilinks market for truck air suspensions.

Operating income 50.4 36.0 40.0%

The consolidated operating income, after partially reversing increased steel prices on to selling prices, leaped to Euro 50.4, from Euro 36 million in 2004, which had been seriously affected by production start-up costs for the US subsidiary.

(1) The Groups consolidated turnover was recorded at Euro 1,023.4 million, a 5.9% increase over 2004, after considering a gain of Euro 13.2 million for favorable foreign exchange translation mainly due to a revaluation of the Brazilian Real to the Euro. The increased revenue was mainly achieved through the suspension components division due to adjusting sales processes to account for increased steel costs, and also due to the commercial success of the stabilinks product range. This was in spite of a further fall in the precision spring sector.
(2) The consolidated operating profit, achieved through continued efforts to contain costs, increased by 15.4%, for a total Euro of 105.6 million against 91.5 million in 2004. This result was influenced by greater costs with respect to 2004, with product guarantee costs totaling Euro 1.8 million, mainly in relation to settlement of a dispute with a customer. It should also be remembered that the previous year had been characterized by high costs and negative profitability due to the production launch of a US subsidiary Allevard Spring U.S.A. Inc..


Products Maker Model Production Year Facility
Filter Division

Engine air filtration system



2005 N.A.
Opel Corsa

2.2 Tdi engine oil filtration system

Ford Transit late 2005 N.A.
Psa Boxer and Jumper
2.4 Tdi engine oil filtration system Ford Transit/Land Rover 4x4 late 2005 N.A.
F1C diesel fuel filtration system Iveco Daily 2005 N.A.
Diesel Fuel Filter for DC Magna Styer N.A. N.A. Sogefi Filter Division
Oil filter module for Diesel engines Volkswagen Eos N.A. Sogefi Filter Division
Suspension components and Precision springs Division
Front bar and spring Peugeot AT/new 206 late 2005 N.A.



Rear spring



late 2005 N.A.
Front/rear bar and rear spring Ford Eudc/Mondeo/Galaxy 2006 N.A.
Volvo S60/V70/S80
Land Rover Freelander
Front bar and rear spring DaimlerCrysler W204/new class C project 2007 N.A.
Front/rear spring Renault X91/new Laguna project 2007 N.A.

The Company reorganization continued with the aim of streamlining the organization and Group structural costs. The reorganization involved the following activites:;
- transfer of the shareholding in Sogefi Filtration S.p.A. (Italy) from Filtrauto S.A. (France) to Sogefi S.p.A.;
- merger of Rejna S.p.A. (Italy) and Sidergarda Mollificio Bresciano S.r.L. (Italy);
- merger of Allevard Rejna Autosuspensions S.A. (France) and Allevard Reijna Technologie Froid S.A. (France);
- transfer of the shareholding in Luhn & Pulvermacher - Dittmann & Neubaus GmbH (Germany) from Sogefi S.p.A to Allevard Federn GmbH (Germany);
- transfer the shareholding in Filtrauto Inc. U,S.A. (now Sogefi Inc.) from Filitrauto (France) to Sogefi S.p.A.

A part of the framework to continue improvement in Group productivity, an objective pursued by concentrating production units into a smaller number, was achieved during the year of 2005. Namely, the Melfi (Italy) suspension components plant, the Coevorden (the Netherlands) precision spring plant and the Nottingham (Great Britain) filter plant were closed.

In the current period, the Sogefi Group expects to benefit from a modest improvement in the European economic situation, from confirmation of the positive trend of South American markets, and from regained stability in raw materials prices. Significant increases in energy costs should also be offset by improved efficiency resulting in a further concentration of production activities.


R&D Expenditure 
(in million Euro) 2005 2004 2003 2002
R&D Expenditure 22.68 22.12 18 16.2

Investment Activities


(in million Euro) 2005 2004
Capital Investment 36.0 44.5

In 2005, the Company was able to restrict total new technical investments, down to Euro 36 million against Euro 45 million in the previous period.