Miba Business Report FY2006
in million euros
|FY2006/07||FY2005/06||Rate of change||Factors|
|Sales||366.5||347.0||5.6%||Adjusted for the sales volume of the site in Naples (Italy), which was sold in the current business year, the consolidated sales volume increase would have been significantly higher, namely 8.5 percent. The Company benefited from the positive developments in its main customer markets, from commercial vehicles and construction equipment up to and including ships. Automotive production in Europe, Miba Sinter Group's primary market, gained some momentum during the course of the business year and recorded moderate growth despite the rise in fuel prices.|
|Earnings before taxes||15.5||21.7||(28.3)%||Earnings
before taxes (EBT) for the past business year were weighted down
by the non-recurring effects from the divestiture of the Naples
site for the amount of EUR 6.1 million and thus decreased from
EUR 21.7 million in
the previous year to EUR 15.5 million in the current business year. Including the non-recurring effects incurred during the past business year, this figure corresponds to a 4.2 percent return on sales (ROS) as compared to a 6.3 percent return on sales in the previous year.
|Sales by Segments|
|Sinter Group||160.6||155.8||2.4%||Growth was
mainly attributed to the start-up of challenging large scale projects
for engine parts, such as sintered camshaft gears, mass balancer
gears and clutch elements for manual transmissions. Preliminary
work in the form of tooling and
sample production for additional new orders has been carried out, the results of which will become visible in the years to come as increased sales volume and earnings. Furthermore, Miba Sinter Group was confronted with substantial increases in the prices of metal powders and energy which could only partially be passed on to the customers. The EBITDA
decreased slightly, from EUR 8.1 million to EUR 7.5 million.
|Bearing Group||145.2||131.9||10.1%||The dynamic development
of its customer markets has continued during the 2006/2007 business
year and has once again led to decisive growth. The Company has
benefited from this situation and was able to record market share
gains in 2006/07.
During the same time period, the Group's EBITDA slightly increased to EUR 37.6 million.
|Friction Group||62.5||60.0||4.2%|| This positive development
is primarily due to the consistently high demand for clutch linings
for commercial vehicles and the increased demand for brake segments
high-speed trains and wind power stations.
EBITDA for the reporting period decreased from EUR 4.9 million to EUR 1.3 million. This was due to the start-up costs (EUR 3.2 million) for the new friction material plant in Vrable exceeding the projected cost.
Details by Division
|Sintered Components Division (Sinter Group)|
Optimized production site concept
|Engine Bearings Division (Bearing Group)|
- In order to optimally serve the
increased demand and to be well-equipped for further growth,
an extensive construction project was started at the Laakirchen
site during the past business year. Production capacities were
increased and the tooling and set-up segments were modernized.
Completion is expected in the first half of the current business
year. An investment amounting to EUR 3.5 million serves to further
expand the high technological standard of Miba's bearing production
in the segment diesel engines for ship drives.
|Friction Materials Division (Friction Group)|
relocation of the steel plates production from Sheffield (England)
to Vrable (Slovakia) has progressed further during the past business
year. The series production at the new site was started up during
thesecond half of the 2006/07 business year. Due to the excellent
economic conditions and the high demand attributable thereto,
the remaining machines from the Sheffield site will not be relocated
until the first half of the current business year. This will ensure
that a competitive series production is established for optimally
filling its customers' orders. The Vrable plant complements the
Roitham site in an ideal manner and provides its Austrian sister
company with input stock. Starting from the current business year,
80 percent of Roitham's steel plates' needs will be met by the
-In 2006/07, Friction Group's Austrian site in Roitham recorded a very high level of plant utilization. Due to increasing customer demand, a fourth shift was introduced in certain production areas during the second half of the year. Miba HydraMechanica, the US production site with head offices in Sterling Heights, was operating at high capacity due to orders from the aviation industry and the automotive sector.
-Oct. 31, 2006, Miba AG announced to sell its sinter plant in Naples with 170 jobs to an Italian investor. This move is aimed at securing the Company's existence in the long term. By optimizing its location concept, Miba is preparing for the anticipated market growth in the automotive industry in Far East. This includes building a manufacturing facility for shock absorber and small engine components in Suzhou.
-For the 2007/08 business year, the Company is counting on a favorable economic environment in its target markets and a continuation of its path towards growth. Consistently increasing production figures for the engine and automotive industry are expected for the years to come. With the new plant in Suzhou (China), especially Miba Bearing Group and Miba Sinter Group will have an opportunity to benefit from the continuing dynamics of the emerging markets in the Far East.
Sinter Group will consistently continue to focus on technologically complex components. Miba Sinter Group's Management is convinced that the growth from new business at the high-tech sites in Vorchdorf and Dolny Kubin will completely compensate for any loss in sales volume resulting from the sale of the Naples site.
Following three years of strong market growth, Bearing Group's management is expecting a consistently high market volume for 2007/2008.
Among the operative priorities are the efficient start-up of production in China and the market developments concerning truck bearings and two-stroke diesel engines for ship drives.
With the construction of the new friction material plant, Friction Group has set the course for profitable growth, banking once again on increasing its sales volume in 2007/08. With the non-recurring effects resulting from the relocation behind the Company, the Company anticipates a sustainable improvement of the results from operations.
(In million euro)
|% of Sales||5%||5%||3.5%|
- According to a study by the EU Commission, the Company is one of the top 500 most research-intensive corporations in Europe and among the top ten of the most research and development oriented corporations in Austria.
- The number of patents filed increased by 23% in the reported year.
New Product Development
In 2006/07, Miba Bearing Group developed a complete, lead-free bearing line for commercial vehicles which has already entered into series production. Thus, Miba technology provides bearings with a high stability under load, without resorting to the use of lead, for commercial vehicle applications. For two-stroke diesel engines used in ship drives, the SYNTHECR coating process is the first environmentally-friendly and lead-free bearing coating released for use to renowned clients. This coating process enables higher assembly loads and increases bearing life. In the past year, Miba Bearing Group's research focused on lead-free bearing materials and bearing coatings and the production processes related thereto, heavy fuel oil resistant three-material bearings and the further development of simulation tools.
In 2006/07, Miba Friction Group put its latest developments and products for trains into practice, namely a low-noise brake lining for trains and a new high-energy brake lining for high-speed trains. In the field of commercial vehicles, a new carbon friction material for synchronizer rings, featuring higher strength and increased shifting comfort, was developed and brought to market maturity. The additional focus of R&D activities was on sintered clutch segments for passenger cars and commercial vehicles, paper friction materials with a high static friction coefficient, and paper or carbon friction materials with a positive friction coefficient gradient.
Investment by segment
(In million euro)
-Following the above-average investment
of EUR 46.8 million (excluding financial assets) in the previous year,
investments in the past year remained at a high level of EUR 31.9 million,
of which EUR 14.4 million went to Miba's Austrian sites.
-On March 26, 2007, Miba opened its new plant in the Suzhou Industry Park, 90 kilometers west of Shanghai. China's great market potential offers growth opportunities for Miba in the region. Local production of engine bearings and sintered components ensures close contact with Asian customers. The initial investment in the new plant amounted to approximately 10 million euros.