Haldex AB Business Report FY2009
|(in million SEK)|
|FY2009||FY2008||Rate of change (%)||Factors|
|Sales by divisions|
|Commercial Vehicle Systems||3,134||4,234||(26.0)||1)|
Commercial Vehicle Systems
-Sales amounted to SEK 3,134 m (FY2008: SEK4,234m) which were down 26%. The main reason was the volume decline experienced in the market during the first half of 2009. During the second six months, the market stabilized. In Europe, sales amounted to SEK 1,085 m ((FY2008: SEK 1,938m), while North American sales amounted to SEK 1,673 m (FY2008: SEK 1,852m). Adjusted for currency exchange rates, sales were down 47% in Europe and 22% in North America.
-An adjusted operating loss of SEK 60 m (FY2008:Profit SEK 4m) was reported. The operating result was affected by considerably weaker demand. During the final two quarters of the year, the division was essentially at break even level.
-Sales amounted to SEK 1,406 m (FY2008: SEK 2,095m) which were down 32.9% compared with 2008. The decline in market demand that began in the second half of 2008 continued through the second quarter of 2009 but stabilized during the third quarter. During the fourth quarter, a rise in demand was noted, which was primarily the result of prebuy effects pertaining to engines in North America.
-An adjusted operating loss of SEK 47 m (FY2008:Profit SEK 146m) was reported. The adjusted operating result in the fourth quarter amounted to income of SEK 10m, representing an improvement of SEK 24 m compared with the third quarter.
-Sales amounted to SEK 850 m (FY2008: SEK 1,021m) which were down 26.7%. Compared with the third quarter, a sharp rise in sales was noted during the fourth quarter, as a result of increased deliveries for several new vehicle models and significant demand from Volvo and Volkswagen.
-Adjusted operating income amounted to SEK 29 m (FY2008: SEK 41m), Operating income totaling SEK 17 m was generated in the fourth quarter, which means an operating margin of 7%.
Contracts-The Company received an order from Land Rover, which is owned by Tata of India. The order applies to its all-wheel drive (AWD) system for one of Land Rover's new car models. The annual order value is estimated at SEK 100 million and the order represents a 100-percent increase in the Company's existing annual volume from Land Rover. Production is scheduled to commence in 2011. (From a press release on Jan 26, 2009)
-The Company secured All-Wheel Drive system contract from Volkswagen. It will supply its AWD-coupling for VW's new platform due in 2012. The total value amounts to about SEK 4.5 billion for a period of approximately 7 years. This is the largest single order ever for Haldex. The coupling will be manufactured at its facility in Landskrona, Sweden. (From a press release on Apr 16, 2009)
-A European truck manufacturer has chosen the Company as supplier of the mechatronic version of ModulAir, a modular air-drying and air-distribution product. The order has a total value of about SEK 750 million over a period of approximately 10 years, with production commencing at the end of 2011. (From a press release on October 23, 2009)
-Haldex Concentric has won the contract to manufacture a water pump for the D12, a new 12 liter diesel engine by a truck maker CNHTC (Chinese National Heavy Truck Group Company). Its plant in Suzhou, Zhejiang Province has started the delivery to CNHTC's facility in Jinan, Shandong Province. Approximately 14,000 units will be supplied in 2010 rising to 30,000 by 2011. (From a press release on January 4, 2010)
-The Company announced that it will continue to supply All-Wheel-Drive system to Volvo Cars. The AWD-coupling ordered is for their current and future platform. This new order starts in 2012. The coupling will be manufactured at their production facility in Landskrona, Sweden. It currently provides Volkswagen, Audi, Skoda, Seat, Ford, Land Rover and General Motors with AWD systems. (From a press release on March 12, 2010)
Restructuring-The Company announced its plan to reclass the Commercial Vehicle Systems division. Air Management and Brake Control business units will be merged into a single unit, namely Air Controls. (From a press release on October 6, 2009)
-TheCompany announced that two of its divisions' production units in the US will be consolidated into one plant. The plant in Statesville, North Carolina, will be closed following the transfer of manufacturing to its plant in Rockford, Illinois. A number of employees in Statesville will be given the opportunity to relocate to Rockford. The merger will be implemented in mid-2010. Restructuring costs will total approximately SEK 13 M, and will be posted in the first quarter of 2010. The annual saving is estimated to SEK 23 M. (From a press release on January 19, 2010)
Divestiture-On June 1, 2009, the divestment of the Garphyttan Wire division to Suzuki Metal Industry Co, a Japanese manufacturer of steel wire products was completed. The sales price was SEK 827 m on a debt-free basis. The transaction resulted in a capital gain of SEK 411m.
|(in million SEK)|
|Product development costs||267||339||335|
-In 2009, development costs accounted for almost 5% of sales.
Product DevelopmentsWorld's first UN-ECE approved rollover simulator for trailers
-The Company is to launch the world's first UN-ECE approved rollover control simulator for trailers. The simulator will enable trailer manufacturers to obtain type approval for vehicles equipped with Haldex's EB+electronic braking system so that the vehicles meet the UN-ECE regulations (which include new rules for braking systems) without manufacturers having to carry out their own resource-intensive road testing.
(from a press release of Jan 21, 2010)
-A new function that was introduced in 2009 is what is known as Softdocking. This function detects the distance between the trailer and the ramp when backing a vehicle up toward a loading ramp. This braking system is automatically activated when the vehicle has less than 0.5m to the ramp and the driver can safely maneuver the vehicle to the loading/unloading position.
Generation V of AWD coupling
-Since the first generation of the Company's AWD coupling was introduced in 1998 for Audi TT and Volkswagen Golf, the development of new generations has continued and the development of a fifth generation is under way.
Development of Generation V continued according to plan during 2009, and the system was tested both in laboratory and road tests that showed highly favorable results. Production of Generation V for the first customer is scheduled to begin during the first quarter of 2012.
Hybrid technology project
-The Company is conducting a hybrid technology project in cooperation with universities and car manufacturers. A full-scale prototype of an electrically powered AWD solution was developed and tested during 2009 with highly
favorable results, and winter tests will be conducted during the first half of 2010. The project is supported and financed in part by the Swedish Energy Agency.
|(in million SEK)|
|Commercial Vehicle Systems||103||232||259|
Breakdown by Geographic Area
|(in million SEK)|
|Asia and The Middle East||10||11|