Miba Business Report FY2007
Business Highlights
Financial overview
in million euros |
FY2007/08 | FY2006/07 | Rate of change | Factors |
Overall | ||||
Sales | 387.7 | 366.5 | % | - |
Earnings before taxes | 54.5 | 48.4 | % | - |
Sales by Segments | ||||
Sinter Group | 159.9 | 160.0 | (0.4%) | (1) |
Bearing Group | 159.6 | 145.2 | 9.9% | (2) |
Friction Group | 69.9 | 62.5 | 11.8% | (3) |
Factors
(1)Sinter Group
-After adjustment for the sales loss resulting from the disposal of
sinter plants in Spain and Italy, Miba Sinter Group posted a sales increase
of 31 percent. Growth therefore significantly surpassed market growth.
This was due to new projects in the area of sintered camshaft gears
or highly stressed components for double-clutch transmissions such as
synchronizer hubs and dog rings 窶 products that went into standard
production in the past fiscal year.
-EBITDA totaled 7.1 million euros in the past fiscal year and was significantly
reduced by the sale of the production site in Spain.
(2)Bearing Group
-Miba Bearing Group benefited in the past business year from continuing
high demand, particularly from the Far East, and was able to continue
its dynamic growth. New orders reached record levels in important target
segments such as commercial vehicles and ships. Fiscal year 2007-2008
closed with a new sales record of 156.3 million euros. This corresponds
to an increase of almost ten percent compared with the previous year.
Miba Bearing Group accounted for 40.3 percent of the Company's total
sales volume and for the first time was virtually tied with Miba Sinter
Group.
- EBITDA in the same period remained at a high level at 38.9 million
euros.
-Miba Bearing Group's biggest production site in Laakirchen, Austria,
posted growth of ten percent in 2007-2008. In order to meet higher customer
demand efficiently, 10 million euros was invested in significant expansion
of the production area and purchase of new equipment. Miba Bearing Group
is therefore well prepared for further growth, especially in its new
core business 窶 truck bearings.
(3)Friction Group
-The demand in the U.S. tractor market, in particular, increased significantly
due to the rising demand for agricultural products. Miba Friction Group
also posted double-digit growth in the area of brake applications for
wind generators and high-speed trains and clutch segments for the commercial
vehicle sector.
- EBITDA jumped to 6.4 million euros from 1.3 million euros during the
reporting period because relocation of the new friction coating plant
to Vrable, Slovakia, made start-up costs unnecessary.
-Due to the strong growth in incoming orders, all plants in Miba Friction
Group experienced high capacity utilization during the past year. Production
was at an especially high level during the entire year at the parent
plant in Roitham, Austria, in order to meet the strong customer demand.
Sales at this location rose by almost 16 percent compared with the previous
year. Productivity was again increased as the result of systematic development
of production processes, and new production launches were successfully
carried out for a number of major customers.
Divestitures
Effective August 1, 2007, the Company sold its subsidiary Miba Sinter
Spain S.A. (now called Sintermetal S.A.), which was based in Ripollet,
Spain. With this sale, Miba Sinter Group implemented its new production
site concept, which is designed to support a global customer supply
system, and also underscored its clear strategic orientation toward
high-tech products.
By reducing the number of production sites, Miba Sinter Group was able
to raise its high productivity and quality level even further. It invested
almost 19 million euros for this purpose in the past year.
R&D
R&D Expenditure
(In million euro) |
FY2007/08 | FY2006/07 | FY2005/06 | FY2004/05 |
R&D Expenditure | 16 | 18.5 | 17.5 | 11.3 |
% of Sales | 4% | 5% | 5% | 3.5% |
R&D Structure
- 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.
Product Development
Sinter Component Group
In 2007-2008, the Group developed the surface densification technology
called Densgrad(R) and new densification processes for the manufacture
of highly stressed, quiet and at the same time weight optimized
gears for passenger car engines.
The new Miba Denscomp(R) press technology was introduced in standard
production for the manufacture of sintered bearing caps in modern passenger
car diesel engines. It makes it possible to achieve maximum component
strength economically and with high precision even with complex geometries.
Bearing Group
In 2007-2008 Miba Bearing Group focused its research on heavy-duty,
lead-free bearing types and improved electroplated and synthetic overlays.
It developed Type 69, for example, a lead-free sputter bearing with
a SYNTHEC run-in coating that is currently the heaviest-duty bearing
for truck and high-performance engines.
Investment Activities
Investment by segment
(In million euro) |
FY2007/08 | FY2006/07 | FY2005/06 | FY2004/05 | FY2003/04 |
Sinter Group | 18.9 | 15.1 | 16.8 | 14.5 | 9.9 |
Bearing Group | 11.9 | 9.8 | 8.5 | 5.5 | 5.5 |
Friction Group | 4.0 | 5.3 | 17.6 | 2.0 | 5.5 |
others | 1.2 | 1.7 | 3.9 | 2.7 | 3.5 |
Investment Total | 36.0 | 31.9 | 46.8 | 24.7 | 24.4 |
Sinter Group
1) A total of 14 million euros was invested in the purchase of new equipment
to expand capacity at the high-tech site in Vorchdorf, Austria, the
largest European production facility for sintered components. This site
alone posted sales growth of 21 percent in the past fiscal year.
2) The Slovakian facility for sintered components in Dolny' Kubテュn,
which
optimized its product portfolio to focus on high-tech products after
acquiring the
neighboring Metalsint plant, also expanded significantly.
3) The Company's first production facility in China, Miba Precision
Components China (MPCC), went into operation in 2007-2008. The newly
constructed plant produces both sintered components and bearings. In
the area of sintered components, standard production of engine parts
was started up in the past fiscal year.
Bearing Group
At the Suzhou site of the newly established company Miba Precision
Components China (MPCC), production focuses primarily on bearings for
commercial vehicles. Local production guarantees proximity to the major
Chinese engine and vehicle producers. Because of the dynamic market
growth, expansion of capacities in the area of large bearing production
is being considered.
Friction Group
The relocation of steel disc production from Sheffield, England,
to Vrable, Slovakia, was successfully completed during the 2007-2008
business year. Operations were shut down at the English site in November
2007. A competitive standard production operation was set up at the
new site in order to fill customer orders with maximum efficiency.
80 percent of Roitham's steel disc requirements will be supplied by
Vrable.
Overall
-In order to meet the rising demand for Miba technology efficiently,
extensive
investments in plants and equipment are also planned for fiscal year
2008-2009 and will total about 40 million euros. A major focus will
be the United States, where about 15 million euros will be invested
in the expansion of the existing bearing plant and in the buildup of
sintered components production. By making these investments, Miba will
be able to support its European customers as they launch new technologies
in the U.S. market.