Kongsberg Automotive ASA Business Report FY ended Dec. 2014
Business Highlights
Financial Overview |
(in million EUR) |
| FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | Rate of Change (%) |
Factors | |
| Overall | ||||
| Sales | 979.1 | 990.9 | (1.2) | 1) |
| EBITDA | 97.0 | 97.1 | (0.1) | - |
| Operating revenues by business segment | ||||
| Interior | 304.5 | 299.0 | 1.8 | - |
| Driveline | 265.0 | 279.8 | (5.3) | 2) |
| Fluid Transfer | 193.5 | 189.0 | 2.4 | - |
| Driver Control | 252.7 | 257.2 | (1.7) | 3) |
Factors
1) Overall Sales
-Revenues for FY ended Dec. 31, 2014 declined by 1.2% year-on-year.
2) Driveline segment
-Driveline showed decline of 5.3% year-on-year due to some major programs reaching end of production and weakness in its southern European business.
3) Driver Control segment
-Driver Contro showed decline of 1.7% year-on-year, mainly due to a weak South American market and a faster than anticipated switch from manual to automated shifter technology.
New Business Wins
-The Company has commited itself to new technologies such as ATM, Shift-by-Wire, ePower products, Couplings for the US market and Seat comfort products, and it's achieved a record for new business wins - above EUR 282 million (from BRICs EUR 54 million among them).
Acquisitions
-The Company has increased its commitment to and capabilities within electric- and hybrid powertrains by acquiring 100% ownership in ePower Nordic AB, a joint venture between the Company and QRTECH AB. ePower's product scope is power electronics, the components between the electric motor and the battery, and the connection to the power grid, such as on board chargers, converters and inverters. Including the ePower organization, the Company now has a team of 75 electronic engineers. (From a press release on April 8, 2014)
-Contracts received for ePower products in FY ended Dec. 2014:
- The Company has been awarded a contract from a major European car maker for the supply of on-board chargers (OBCs) for the car maker's plug-in hybrid vehicles. The estimated total value of the contract, which is the first for this type of product, is EUR 10 million over its duration. The OBCs will be used first in plug-in hybrid city buses and later also in other vehicles to be sold worldwide. Production under the contract will start in the fourth quarter of 2015 from the Company's production facility in Mullsjo, Sweden.
- The Company has won a contract with a global manufacturer of premium passenger cars for the supply of on-board charger (OBC) for their next generation of plug-in hybrid electric vehicles. The OBC will be used in C Segment cars which will be sold in Europe, North America and China under two different brands. The contract has an estimated total value of EUR 40 million over eight years, with supply from the Company's facility in Wuxi, China. Production will start in the second half of 2017.
Cutdown of Production
Driver Control segment
-The Company has decided to reduce the activity level at its plant in Rollag, Norway. The forging activity will be outsourced and the internal processes will be simplified. This will create more flexibility and enable a move to an alternative location after a three year period. Rollag will be developed in the direction of a pure machining and assembly operation by outsourcing the forging activity and making plants in Hvittingfoss and Brazil independent of Rollag services. The plant, which currently employs 87 people, produces stabilizers for truck cabins and rear axles as part of Driver Control Systems business area. The facility hosts several different processes; from cutting, forging, automated machining, hardening and robot welding, to assembly and powder coating. (From a press release on October 16, 2014)
Contracts
| -Major Contracts in FY ended Dec. 2014 | (From a press release in 2014) |
| Customer | Product | Contract detail and value | Remark |
| Interior | |||
| Two German premium car makers, 19 different vehicles of B, C, CUV and SUV segments |
Pneumatic seat comfort systems (with pneumatic lumbar and side support systems including massage functionality) | EUR 250 million (9 years) |
-The production commences in the third quarter of 2017. |
| Major North American seat and interior manufacturer, Compact car and the next generation of plug-in hybrid electric vehicle |
Rear center arm rest | EUR 11.4 million (5 years) |
-The production commences in the third quarter of 2015 at Milan, Tennessee, USA. |
| Driveline | |||
| Major European car maker, Next generation of vans/MPV from several brands |
Manual shifter systems | EUR 75 million | -The production commences in the first quarter of 2018 at Vrable, Slovakia. |
| Major North American car maker, C segment CUV to be sold globally |
Automatic transmission shifters | EUR 122 million (6 years) |
-The production commences in the first quarter of 2016 at Nuevo Laredo, Mexico and Wuxi, Jiangsu Province, China. |
| Major North American car maker, B and C Segment vehicles being sold globally |
Automatic transmission shift cables | EUR 108 million (8 years) |
-The production commences in the third quarter of 2016 at Nuevo Laredo, Mexico and Wuxi, Jiangsu Province, China. |
| Major European car maker, D Segment vehicles being sold in Europe |
Gear shifters for both automatic transmissions featuring shift by wire and manual transmissions | EUR 119 million (7 years) |
-The production commences in fouth quarter 2015. |
| Fluid Transfer | |||
| Major manufacturer of brake and fuel lines, for European and Chinese market |
High temperature hose products | EUR 23 million (3 years) |
-The production commences in January 2015 at Normanton, UK and Grand River, Ohio, USA. |
| One of the world's largest car makers | Brake vacuum assembly parts | EUR 15 million (5 years) |
-The production commences in 2016 in Europe and China. |
| Driver Control | |||
| Commercial vehicle manufacturer | Automated manual transmission (AMT) parts | EUR 110 million (5 years) |
-The supply will commence in 2016 - 2017 at locations in South and North America. |
| Brazil (MAN, Iveco), Russia (Kamaz), India (Asia Motor Works, Ford), China (Dongfeng Motors, Beiqi Foton, JAC etc.) | Gear shifters for automated transmissions, throttle pedals, clutch actuation systems and cable gearshift systems | EUR 54 million (5 years) |
- |
Awards
-The Company's plant in Mullsjo, Sweden, has been awarded the General Motors Supplier Quality Excellence Award for 2013-2014. The plant produces gear shifters for both passenger cars and heavy vehicles, head restraints, crash brackets, expansion tanks and on-board chargers. (From a press release on October 21, 2014)
R&D
R&D Expenditure |
(in million EUR) |
| FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 | |
| Overall | 58.7 | 48.6 | 47.1 |
| % of Sales | 6.0 | 4.9 | 4.7 |
R&D Structure
-The Company's overall spending on R&D totaled 6.0% of sales in 2014. This involves a team of approximately 505 highly skilled people.-There are five global tech centers, and they are located in the USA (Novi), China (Wuxi), Germany (Hallbergmoos), Sweden (Mullsjo) and Norway (Kongsberg).
R&D Facilities
-The Company has opened its new Technical center in Mullsjo, Sweden. The new SEK 30 million (approximately USD 4.1 million) building includes 4,500 square meters of office and engineering space for persons from all business areas and allow the company to consolidate three R&D centers to one for Driveline in Europe. The center has office capacity for 180-190 people, and 165 people have already started working in the center. The center gathers all R&D, purchasing, engineering, program, sales and global manufacturing engineering in one building. (From a press release on October 22, 2014)Investment Activities
Capital Expenditure |
(in million EUR) |
| FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013 | FY ended Dec. 31, 2012 | |
| Interior | 9.5 | 7.3 | 8.3 |
| Driveline | 9.2 | 6.0 | 8.2 |
| Fluid Transfer | 7.4 | 6.0 | 5.3 |
| Driver Control | 7.4 | 8.8 | 6.8 |
| Eliminations & other | 0.5 | (0.1) | 0.0 |
| Total | 34.0 | 27.9 | 28.6 |