Sanluis Corporacion Business Report FY2009
Business Highlights
Financial Overview |
(in million USD) |
| FY2009 | FY2008 | Rate of change (%) |
Factors | |
| Consolidated | ||||
| Sales | 404.1 | 624.2 | (35) | - |
| Sales by business units | ||||
| Suspension North America | 211 | 292 | (28) | 1) |
| Suspension Brazil | 148 | 203 | (27) | 2) |
| Brake business | 45 | 129 | (65) | 3) |
Factors
1)
Suspension North America
-The Company launched 4 leaf spring programs for 4 different customer platforms, valued at an estimated $20.5 million dollars of annual sales. Additionally, the Company was awarded 3 new coil spring programs by 3 different customers with an estimated value of $5.8 million dollars in annual sales.
-On the other hand and, after several years of preparation, the Company was awarded two commercial vehicle leaf spring development programs. These programs are for future vehicles of OEM truck builders and the Company will work side by side with them developing the leaf spring components for the new suspension systems. When these programs are successfully completed, which is expected by mid 2011, and contracts issued, they will have an estimated potential annual sale of $19.0 million dollars.
2)
Suspension Brazil
-Sales of leaf springs during the first half fell by 32% when compared to 2008, and 36% in the case of coil springs. This situation led the Company to implement several actions in order to cope with this harsh reality, mainly by reducing costs and eliminating any redundancy. Among the main actions:
• Renegotiated price of raw materials and other components.
• Agreed reduction in labor cost with the workers and the union leadership.
• Reduction of more than 10% of the workforce.
• Speed up the implementation of several internal projects to reduce costs and increase productivity.
• Reduced the pace of investments initiated in 2008.
-As a result of these actions, from a net loss of 5% at the end of the first quarter, the Company was able to move to 0.6% profit by the end of the first half.
3)
Brake business
-Rassini Brakes started the development of new markets such as components for agricultural equipment (Case New Holland) in its traditional market, and the Company secured and in some cases increased the participation.
-Launched the rotors for the B299 platform at Ford (Fiesta front and rears) and C346 (Ford Focus, fronts). With GM the Company developed rotors for the GMT 900 (Chevrolet Silverado / GMC Sierra).
-And started supplying the GS platform (Tsuru) at Nissan.
-At the end of 2009, Rassini Brakes sales came to US$45.2 million.
Divestitures
-The Company will sell 24% stake of Brembo Rassini S.A. de C.V. to Brembo. The joint venture produces brake discs. (From a press release on July 30, 2009)R&D
R&D Structure
-Working closely with its Product Development laboratories in Mexico and Brazil , the Plymouth Office provides directional leadership for new technologies and technical initiatives.Product Developments
-The Company launched its suspension system for light vehicles based on its new Quadratech(R) technology. Quadratech, through its suspension system which is 20% lighter than the existing systems, achieves a better performance in fuel consumption. And for its first commercial application, an alliance was made with Firestone Industrial Products, LLC. (From a press release on Aug. 4, 2008)-The Company introduced the R4Tech; at the SEMA show in November 2008. This new suspension system which was a joint effort between the Company and a leading air spring company, won Popular Mechanics Editors Choice Award for 2008. This new suspension will be available on 32 different light trucks in 2009 as an aftermarket option.
-In 2008, the Company's brake business registered two patents, the first one, a new metal matrix composite and the second one related with a technology that provides significant weight reduction while improving the performance of the brakes system.
-In the last quarter of 2008 the Company developed new gray iron products for the agricultural sector and began supplying during December.