Sanluis Corporacion S.A. de C.V. Business Report FY2010

Business Highlights

Financial Overview

(in million USD)
  FY2010 FY2009 Rate of change
Sales 603.0 404.1 49.2 1)
Sales by business units
Suspension North America 293 211 38.9 2)
Suspension Brazil 234 148 58.1 3)
Brake business 76 45 68.9 4)

-Total consolidated sales in 2010 were $603.0 million, 49 % above last year, due to better sales volume in the US and Brazilian automotive markets.

Suspension North America
-The start up of new business and the beginning of the economic recovery in the NAFTA market significantly lifted our revenues vs. 2009. Sales of leaf springs increased 37 %, while sales of coils springs jumped 62 % maintaining our 92 % market share in leaf springs and increasing it in coil springs.

Suspension Brazil
-The Company successfully launched 6 leaf and 5 coil spring programs for 9 platforms for 6 customers totaling $113.9 million dollars in sales, of which $8.5 million was new business, while diversifying the supply of leaf springs into off-road applications. Additionally, the Company was awarded 6 leaf and 6 coil spring contracts or letters of intent from 4 customers totaling $39.8 million in annualized sales of which $18.8 million was new business including one platform to be assembled in Europe by mid 2011.

-In 2010 our subsidiary company in Brazil, Rassini NHK Autopeças (RNA) had a significant recovery vs. 2009 in terms of volume and revenues due to the economic growth in Brazil, supported by a robust internal demand strong currency.

-RNA sold 34 % more leaf springs and coil springs than the previous year, and an all time record. This translated in $234 million dollars in revenues, 58 % above 2009. Also, during this year, RNA retained its 65 % market share in the OEM leaf spring market and 13 % in the case of coil springs.

Brake business
-The beginning of the auto recovery and the start up of new business during 2010, contributed significantly to improve Rassini Brakes revenues. With the start up of new platforms from Ford, General Motors and Chrysler, the Company launched key programs that contributed to the recovery and growth of these Division.


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.

Investment Activities

Investment Outside Mexico

-Continuing with the investment plan in the coil spring facility, by the 4th quarter of 2010, RNA started production prototypes of high stress coils in a new, highly productive, state of the art coil line in the Sao Paulo plant.

-With a significant improvement sales forecasted for 2010, at the end of 2009 the Company restarted the installation of the coil spring line in Sao Paulo and the new parabolic leaf spring line in Rio de Janeiro. These expansions will allow the Company to meet the expected demand for 2010, with increased productivity and the latest technology.