Sogefi Business Report FY2006
|in million Euros||FY2005||FY2004||Rate of change||Brief|
|Consolidated Sales revenues||1,023.4||966.1||5.9%||
(See factor 1 below)
(See factor 2 below)
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.
|Flexible Suspension Components and Precision Spring Division|
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.
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..
Engine air filtration system
2.2 Tdi engine oil filtration system
|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.|
|Front/rear bar and rear spring||Ford||Eudc/Mondeo/Galaxy||2006||N.A.|
|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.
|(in million Euro)||2005||2004||2003||2002|
|(in million Euro)||2005||2004|
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.