Haldex AB Business Report FY2010
|(in million SEK)|
|FY2010||FY2009||Rate of change (%)||Factors|
|Sales by divisions|
|Commercial Vehicle Systems||3,710||3,134||18.4||(1)|
(1)Commercial Vehicle Systems
-Sales amounted to SEK 3,710 m (FY2009: SEK3,134m) which were up 18.4%. The rise was attributable to recovering demand in the heavy-duty truck and trailer markets from the second quarter. Significant growth was seen in the trailer segment.
-An adjusted operating income of SEK 162 m (FY2009:Loss SEK 60m) was reported.
-Sales increased, as the Company succeeded in motivating a number of large transport companies to choose Haldex solutions for brake systems on their vehicles.
-Investments in the new factory in Monterrey, Mexico, followed by a relocation of manufacturing from production units in North America.
-The Company launched the world's first UN-ECE approved rollover control simulator for trailers.
-Sales increased thanks to new orders for the ModulT disc brakes, automatic brake adjusters, and the TrCM+ trailer control modules.
-Sales also rose in Asia, since the company won new ABS and disc brake programs in China. Increased sales of automatic brake adjusters in India also contributed to the rise.
-Sales amounted to SEK 1,977 m (FY2009: SEK 1,406m) which were up 40.6% compared with 2009.
-An adjusted operating income of SEK 179 m (FY2009:Loss SEK 47m) was reported. Earnings improved as a result of increased sales volumes and a retained cost level.
-Production start-up of many new tier4/EPA 10 programs.
-Product launch and production development of Euro 6 programs for both variable and standard control pumps.
-Stateville plant was closed within planned cost and scheduled timeline.
-Sales amounted to SEK 1,219 m (FY2009: SEK 850m) which were up 43.4% thanks to continued robust sales trend with several Haldex customers, primarily to Volkswagen.
-Adjusted operating income amounted to SEK 118 m (FY2009:Loss SEK 29m).
-Securing of order for Generation V of the AWD system from Volvo Car Corporation, beginning in 2012.
-Order from a European sports car manufacturer for an innovative AWD system.
ContractsCommercial Vehicle Systems
-In 2010, the Company received a new order for air disc brakes called ModulT from SAF-Holland S.A., a Luxembourg-based manufacturer of trailer axles and suspension systems. Deliveries will start in 2011 and the brakes will be manufactured in Haldex plant in Landskrona, Sweden. The total order value is estimated at 1,000 million Swedish krona (approximately 106 million euros) over a five year period. (From a press release on July 12, 2010)
-In 2010, Wabash National chose the Company's Gold Seal Long Stroke brake cylinders as standard equipment for its trailers.
-The Company's brake products were chosen by UPS: automatic brake adjusters for new trucks from Mack; and ABSs and brake adjusters for trailers.
-The Company's TrCM+ trailer control modules were selected by Geodis BM, a large French transport company with about 6,000 trucks.
-The Company's TrCM+ trailer control modules were selected by STEF-TFE, a large French transport company with about 3,700 trucks.
Restructuring-The Company announced that it will spin off its Hydraulic Systems and Commercial Vehicle Systems (CVS) division. Hydraulics Systems will change name and operate under the name Concentric AB. Haldex's CVS will continue to operate under the Haldex AB name. (From a press release on May 20, 2011)
Commercial Vehicle Systems
-Based on the strategy to concentrate the Commercial Vehicles Systems North American production operations to Monterrey, Mexico, the Company announced the relocation of operations handled at the factory in Grand Haven, Michigan, to the Monterrey Plant. Transfer work will begin in the second quarter of 2011.
-The Company has decided to concentrate Commercial Vehicles Systems North American manufacturing to its plant in Monterrey, Mexico. As a result, manufacturing at its plant in Iola, Kansas, USA will be relocated to Monterrey, whereupon the operation in Iola will be discontinued during the second half of 2010. The production of brake cylinders was relocated to the operation in Monterrey earlier. Costs for the planned measures will amount to 5.6 million USD (about 45 million SEK) and will generate annual savings of 6 million USD (SEK 50 million SEK). The costs will be charged to earnings in the third quarter of 2010. (From a press release on July 16, 2010)
-The Company 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-BorgWarner Inc. has completed its acquisition of the Traction Systems division of Haldex Group. From production facilities in Sweden, Mexico and Hungary, Haldex Traction Systems supplies all-wheel drive systems for passenger car and crossover vehicles. Customers include Volkswagen, Audi, Skoda, Seat, Lamborghini, Bugatti, Volvo, Land Rover, Saab and GM. The purchase price was 205 million USD. (From a press release on February 1, 2011)
|(in million SEK)|
|Product development costs||277||267||339||33|
-In 2010, development costs accounted for almost 4.0% of sales.
-Commercial Vehicle Systems has five development centers in Europe, India and the US for research, development, applications and design solutions.
Product DevelopmentsCommercial Vehicle Systems
<World's first UN-ECE approved rollover simulator for trailers>
-The Company launched 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.
-In 2010, the Company developed a new generation of disc brakes, "ModulT". This product is around 15% lighter than existing modules, which enables higher freight weights.
-The company developed a series of intelligent, variable water and oil pumps in order to meet the requirements of pending Euro 6 environmental legislation. The pumps reduce fuel consumption by 0.5 to 3% and further reduce exhaust emissions.
|(in million SEK)|
|Commercial Vehicle Systems||146||103||232||259|
Breakdown by Geographic Area
|(in million SEK)|
|Asia and The Middle East||13||10||11|