Thyssenkrupp AG Business Report FY2006-07
|Sales||51,723||47,125||9.8%||Through organic growth, strategic acquisitions and an increased focus on services, the Company achieved record sales and earinings.|
Segment review (Selected)
|Sales||13,209||12,087||9.3%||Mainly due to the price increases achieved in quarterly and contract deals and to a superior product mix.|
|1,662||1,406||18.2%||With shipments at a high level the Company succeeded in passing on increased raw material and energy costs to the market.|
|Sales||4,800||4,375||9.7%||Sales volumes expanded
despite tight capacities. Cost increases on the procurement
side were countered by price increases in contract deals and
measures to improve performance.
At Tailored Blanks, sales and earnings rose significantly due to increased shipments and the ramp-up of the produciton sites in China and Sweden.
|Sales||8,748||6,437||35.9%||With hot-rolled and cold-rolled volumes in decline, this was mainly due to the enormous increase in alloy surcharges - especially for nickel.|
|777||423||83.7%||The increase was due to significantly higher base price levels, the positive impact of nickel prices up to mid-2007, and the successful implementation of programs to increase efficiency at the operating companies.|
|Sales||11,523||11,366||1.4%||Sales were higher despite business disposals and the heavy impact of exchange rate effects.|
|544||410||32.7%||The business units Plant Technology, Automotive Solutions and Transrapid played a major part in this increase.|
|- Mechanical Components|
|Sales||3,793||4,058||(6.5%)||Sales slipped slightly as a result of disposals and USD/Euro translation effects.|
|- Automotive Solutions|
|Sales||3,182||3,018||5.4%||The order situation was pleasing. All operating groups contributed to the marked increase in orders.|
The Umformtechnik group, managed until the end of fiscal 2005-06 by the then ThyssenKrupp Automotive AG, was integrated into the Steel segment as the new Metal Forming business with effect from October 01, 2006. Its main operations are in Europe and the Company is currently in the process of establishing further operaions overseas. A chassis production facility in Brazil was acquired in FY2006-07. Another new plant in Turkey making body parts for cars and delivery vehicles began operation in August 2007.
The ThyssenKrupp Tailored Blanks group has built a new plant in Bursa in western Turkey. Production will start in September 2007 when the company will become Turkey's first manufacturer of laser-welded tailored blanks.
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At the beginning of June 2007, ThyssenKrupp Acciai Speciali Terni (Italy)announced that it would be closing the Turin plant and relocaitong production capacities step by step from Turin to Terni. This process is to be completed by the end of FY2007-08.
The sale of the body and chassis operations of ThyssenKrupp Budd with sales of around 1 billion euro was completed in the first quarter FY2006-07. In this connection, the Company also disposed of its shareholding in the Mexican company Aventec. That completes its withdrawal from the loss-making North-American body and chassis busienss.
ThyssenKrupp Budd Company announced it has completed the sale of its North American automotive body and chassis operations to Martinrea International, Inc., of Vaughan, Ontario, Canada. Martinrea is engaged in the production of metal parts, assemblies, modules and fluid management systems. The purchase price was 275 million USD (From a press release by the company on Dec.1, 2006)
In FY2006-07, there were more than 3,300 people working at the Group's 85 development centers and departments around the world to improve its products and processes. To exploit existing synergy potential in the Group even more systematically, ThyssenKrupp AG as holding company has intensified cross-segment R&D collaboration by providing funding for projects in key areas. Also of great importance were cooperative projects with third parties.
At Technologies segment, 7,300 engineers develop innovative plants and components.
Interdisciplinary Center for Advanced Materials Simulation (ICAMS), a research institute based at the Ruhr University in Bochum. ICAMS is being set up by the Company in conjunction with the state of North Rhine-Westphalia and six other busienss and scientific partners. This research institute, the only one of its kind in Europe, will mainly work on the development of high-tech materials.
|(in million euros)||FY2006-07||FY2005-06||FY2004-05|
Basic research and development
Technical quality assurance
The segment has developed two dual-phase steels with strengths of 800 and 980 Megapascals (MPa) for automotive lightweighting. Unlike conventional advanced ultrahigh-strength steels, the new materials will be available with hot-dip galvanized surfaces to meet strong demand from OEMs.
In collaboraiton with Japan's JFE Steel Corporation, the Company has developed a new multiphase steel for automotive applications. It has a similar strength to that of the advanced ultrahigh-strength steels CP-W 800 from Steel and NANO 780 from JFE. But with up to 40% higher elongation it possesses significantly improved forming properities.
The segment has developed tailored blanks which are suitable for hot stamping. Automotive OEMs are making increasing use of hot stamping technology, in particular for the production of crash-relevant components ; it permits the manufacture of extremely strong, thin-walled parts which enhance crash performance and at the same time meet demanding requirements for weight reduction.
Engineers from its Metal Forming unit developed an innovative lightweight steel rear axle beam. The new lightweight steel chassis costs around half as much as a benchmark aluminium design from an executive class car, and is only 10% heavier.
In conjunction with Johnson Controls, Technologies and Steel segments came up with an improved automobile cockpit structure. Their innovative solution is not only 20% lighter than the production benchmark, it also costs less to produce. At the same time, it takes up less space, offering additional design possibilities for the front passenger area.
Shorter installation times, lower weight, higher natural frequency and outstanding crash energy absorption - all features of the new modular steering column concept from ThyssenKrupp Presta. Despite the fact that parts count and weight have been significantly reduced, this innovative steering column meets all the requirements of the Euro NCAP crash test for a 5-star safety rating. In addition, the position of the steering wheel lock has been optimized to offer knee protection in line with the latest safety standards and improved anti-theft protection. The steering column is being used for the first time in a design study for a complete cockpit, which has been developed in close collaboration with Johnson Controls and ThyssenKrupp Steel. (From a press release on Sep. 14, 2007)
The collaborative project "NGV - Next Generation Vehicle" launched in late 2004 by leading stainless steel manufacturers and auto producers has now produced its first results : They demonstrate the potential of stainless steel for use as an auto construction material. The automotive OEMs participating in the project were Audi, BMW, DaimlerChrysler, Fiat, General Motors/Saab and Ford/Volvo, while the stainless steel producers involved were the Company, Outokumpu and ArcelorMittal Stainless. It was shown that the use of stainless steel in vehicle construction can be especially beneficial in crash-relevant structural parts.
The Company has developed an innovative integrated concept which is being offered to automotive OEMs as an "automotive component kit to reduce CO2 and NOx emissions". It includes lightweighting through the use of high-strength materials and alternative manufacturing processes which can achieve weight savings of 10% to 30% for crankshafts, camshafts, differentials and dampers. It also addresses ways of lowering fuel consumption through innovative camshaft concepts and by using new bearing designs to reduce friction in the engine.
Combining its springs and dampers activities generated considerable development synergies. Its module capabilities have been extended : spring-damper modules integrating several components offer lower weight, noise and friction plus longer lifetimes.
(As of Sep.30)
In FY2006-07, the Group increased its capital expenditure by 44% to 3,001 million euros. 2,873 million euros were spent on property, plant and equipment and intangible assets, while the remaining 128 million euros were used for acquisitions.
The ThyssenKrupp Tailored Blanks group has built a new plant in Bursa in western Turkey. Production will start in September 2007 when the company will become Turkey's first manufacturer of laser-welded tailored blanks. Car manufacturers including Ford, Fiat, Renault, Toyota, Honda and Hyundai produce around 700,000 vehicles a year in Turkey, mainly for export. In Bursa, roughly 90 kilometers south of Istanbul, Renault and Fiat operate production sites in joint ventures with local partners. The new plant will be busy from the start with supplies to the two manufacturers. It will make blanks for the Fiat Linea notchback sedan and a small van for Fiat and PSA as well as for the notchback version of the Renault Megane. The facility will initially operate one laser welding line for linear tailored blanks. The 4,000 square meter building offers space for further expansion. (From a press release on Jun. 4, 2007)
ThyssenKrupp picked Mount Vernon in the U.S. state of Alabama as the site for its new steel mill. ThyssenKrupp's carbon and stainless steel divisions will invest a total of 3.1 billion euros (4.18 billion USD) in the downstream finishing facility, which is scheduled to start operations in 2010. (From a press release on May 11, 2007)
- Mechanical Components Business Unit
This business unit began operation of an automated production line for assembled camshafts in USA and invested in a new machining line for mid-range crankshafts in Brazil.
-Automotive Solutions Business Unit
This unit invested in various production units for innonvative products such as DampTronic shock absorbers and heavy-duty springs. The business unit expanded its assembly capacities on the Brazilian market.