Kongsberg Automotive Holding ASA Business Report FY ended Dec. 2012
Business Highlights
Financial Overview |
(in million euros) |
| FY ended Dec. 31, 2012 | FY ended Dec. 31, 2011 | Rate of Change (%) |
Factors | |
| Overall | ||||
| Sales | 1,001.1 | 999.7 | 0.1 | 1) |
| EBITDA | 77.0 | 82.0 | (6.1) | - |
| Operating revenues by business segment | ||||
| Driveline Systems | 318.4 | 327.3 | (2.7) | - |
| Interior Systems | 258.4 | 247.9 | 4.2 | - |
| Actuation & Chassis | 151.9 | 166.0 | (8.5) | 2) |
| Fluid Transfer Systems | 176.0 | 170.9 |
3.0 |
- |
| Power Products Systems | 135.8 | 133.3 | 1.9 | - |
Factors
1) Overall Sales
-Revenues for the year remained largely in line with 2011 primarily due to a slow fourth quarter, driven by a weak European market.
2) Actuation & Chasis Sales
-A significant part of the drop in revenues may be attributed to the pre-buy effect in Brazil in 2011, ahead of the anticipated 2012 introduction of Euro 5 standards. Lower volumes in Europe also contributed to the drop in revenues.
Restructurig
-In Nov. 2012, the Company announced changes to its organizational business structure within the Commercial Vehicle (CV) segment. Specifically, the Company's Actuation & Chassis (A&C) and Power Product Systems (PPS) business areas will be merged into one business area to be called Driver Control Systems. The new business area will have revenues exceeding 250 million euros, close to 1,400 employees, and serve the On- & Off-Highway, and Recreational Products segments. The new company structure of four Business Areas (Driver Control Systems, Fluid Transfer Systems, Interior and Driveline) will take effect on January 1, 2013. (From a press release on November 6, 2012)Contracts
| -Major Contracts in 2012 | (From a press release in 2012) |
| Customer | Product | Contract detail and value | Remark |
| Major truck manufacturer | Engineered hose assemblies for use in turbo and coolant applications | 10 million euros (5 years) |
-The production commences in 2013 at the Company's facilities in Epila, Spain. |
| Commercial vehicle manufacturers in Brazil | Cabin stabilizers, clutch actuation systems and gearshift systems | 23 million euros (4-5 years) |
-Full scale supply will begin from 2013. |
| Two European manufacturers of Trucks and Buses | Composite coupling technology and fuel and airline assemblies | 10 million euros (5 years) |
-The production commences in 2013. |
| European OEM (for Russian market) | Seat heat systems | 16 million euros (2013 to 2021) |
-Start of production will be in March 2013 at the Company's facilities in Pruszkow, Poland. |
| Major European OEM (The shifters will be used in C, D and E Segment premium cars to be sold in Europe, North America and Asia.) | Automatic gear shifters and shift by wire systems | 181 million euros (2015 and 2024) |
-For 6 different car models on a new platform -Production for global deliveries will begin out of the Company's production facility in Mullsjo, Sweden |
| Major commercial vehicle manufacturer (for a new line of medium truck models produced in Europe.) | Gearshift systems | 7.1 million euros (5 years) |
-Start of production will be in 2013 at the Company's facilities in Vrable, Slovakia. |
| European OEM | Seat comfort products | 287 million euros (2015 to 2024) |
-The Company will start production in the second half of 2014 out of its Pruszkow, Poland facility. -The largest volumes will be produced and delivered between 2016 and 2023. |
| Major OEM (via Tier 1 seat supplier) | Electro-mechanical seat actuators | 18 million euros (5 years) |
-The actuators will be used on the OEMs full size SUV vehicle, which has been among the best selling vehicles in North America for many years. -The Company will start production in the fourth quarter of 2013 out of its Matamoros, Mexico facility. |
| Premium passenger car manufacturer | Fuel lines and air suspension lines | 46 million euros (5 years) |
-The production is already running at KA's facilities in Epila, Spain and Normanton, UK and this expansion will be added to the current production. |
| Major truck manufacturer with production location in Europe and the U.S. | Hose assemblies for turbo lubrication and cooling systems | 26 million euros (5 years) |
-The Company has supported the development of these engines with the engineering center of the customer in Europe. Production will be in two locations, Epila, Spain and Pickens, South Carolina in the U.S. -Start of production is scheduled for 2013. |
| Major American truck and engine builder | Fuel, oil, air and turbo drain | 42 million euros (until 2016) |
- |
| U.S. OEM | Pneumatic lumbar support systems | 10.4 million euros (5 years) |
-The start of production for both vehicles is scheduled for the first quarter of 2013, and production is planned for the Reynosa and Matamoros (both Mexico) facilities. |
| Japanese OEM (for mid-size crossover SUV) | Seat actuation cables | ||
| Major car manufacturer (for a full-size truck and SUV platform in the North American market) | Gear shift cables for an automatic transmission application | 36.5 million euros (5 years) |
-Total vehicle volume is expected to reach between 800,000 and 1 million units annually. -The program is scheduled to launch in April 2013. The shift cables will be produced in the facility in Nuevo Laredo, Mexico. |
| U.S. car manufacturer (for the North American cross over utility vehicles (CUV) from an entry level and a high end luxury level) | Seat heat systems and second row head rests | 42.5 million euros (5 years) |
-The start of production for both vehicles is scheduled for the third quarter of 2014, and production is planned in Reynosa, Mexico and in Milan, Tennessee, the U.S. |
| U.S. car manufacturer (for seven passengers SUVs in North America) | Second row folding head restraints | ||
| OEM for pick-up trucks in the North American market | Seat heat systems | 6 million euros (5 years) |
-Production is expected to begin in July 2014 at the Reynosa, Mexico facility. |
R&D
R&D Expense |
(in million Euros) |
| FY ended Dec. 31, 2012 | FY ended Dec. 31, 2011 | FY ended Dec. 31, 2010 | |
| Overall | 47.1 | 44.8 | 40.9 |
R&D Structure
-The Company's overall spending on R&D totaled 4.7 % of sales in 2012. This involves a team of approximately 400 highly skilled people.-There are five global tech centers, and they are located in the USA (Detroit), China (Wuxi), Germany (Munich), Sweden (Mullsjo) and Norway (Kongsberg).
Investment Activities
Capital Expenditures |
(in million euros) |
| FY ended Dec. 31, 2012 | FY ended Dec. 31, 2011 | FY ended Dec. 31, 2010 | |
| Driveline Systems | 8.4 | 8.9 | 5.2 |
| Interior Systems | 7.9 | 9.5 | 9.0 |
| Actuation & Chassis | 4.8 | 5.1 | 3.0 |
| Fluid Transfer Systems | 5.3 | 5.3 | 2.9 |
| Power Products Systems | 2.2 | 2.5 | 1.0 |
| Eliminations & other | 0.0 | 0.0 | 0.9 |
| Total | 28.6 | 31.3 | 22.1 |