Thyssenkrupp AG Business Report FY2007-08
|Sales||53,426||51,723||3.3%||Overall business performance was in line with its expectations and in some areas better, even though the market environment was increasingly difficult.|
|Earnings before taxes||3,128||3,330||(6.5%)||-|
Segment review (Selected)
|Sales||14,358||13,209||8.7%||The increase was primarily due to rising prices, although shipments were also higher than a year earlier.|
|1,540||1,662||(7.3%)||Earnings before taxes were 122 millions euros lower than a year earlier but higher than its expectations thanks to the positive performance of high-value products.|
|Sales||5,106||4,800||6.4%||Due to higher prices in contract business.|
|Sales||7,420||8,748||(15.2%)||Mainly as a result of lower selling prices.|
|126||777||(83.8%)||Due to the dramatic price falls for nickel and alloyed scrap, earnings were down significantly from the previous year.|
|Sales||12,412||11,523||7.7%||Based on the good order situation, sales in the reporting year also improved.|
|741||544||36.2%||The segment's active portfolio management with a focus on profitable business areas is having an increasing effect.|
|- Mechanical Components|
|Sales||3,924||3,793||3.5%||Gains in slewing bearings and rings, particularly due to unabled growth in the wind turbine sector.|
|- Automotive Solutions|
|Sales||3,247||3,182||2.0%||Order intake at Automotive Solutions increased year-on-year. All operating groups played a part in this, with particular contributions coming from the body shop equipment and assembly systems group and the axle module assembly business.|
ThyssenKrupp Tailored Blanks GmbH, a subsidiary company of ThyssenKrupp Steel AG, brings its Mexican subsidiary company ThyssenKrupp Tailored Blanks S.A. de C.V. as a contribution into the US Joint Venture TWB Company L.L.C. TWB was established in 1991 as a joint venture between ThyssenKrupp Steel North America, Inc., and Worthington Industries for the production of tailored blanks.
ThyssenKrupp Steel becomes the majority shareholder in TWB. (From a press release on Mar. 5, 2008)
ThyssenKrupp Presta Steering has received a production order from BMW to supply the steering column for the X3, 3 and 1 series models. The company has also received a development order from BMW for the steering gears for several future production models. This is the biggest order in Presta's history. (From a press release on Nov. 21, 2007)
As of Jan. 2008, the Sona Okegawa Precision Forging Limited acquired the ThyssenKrupp Prazisionsschmiede GmbH from ThyssenKrupp Technologies AG. ThyssenKrupp Prazisionsschmiede will operate under the name Sona BLW Prazisionsschmiede GmbH.
In FY2007-08, there were about 3,500 people working at the Group's 85 development centers and departments around the world to improve its products and processes.
Interdisciplinary Center for Advanced Materials Simulation (ICAMS) began work in Jun. 2008. ICAMS is a research institute based at the Ruhr University in Bochum, Germany. This research institute, the only one of its kind in Europe, will mainly work on the development of high-tech materials.
The ground breaking ceremony of ThyssenKrupp Presta TecCenter took place in Liechtenstein/Eschen. This new facility will be ready by Sep. 2008. (From a press release on Oct. 23, 2007)
|(in million euros)||FY2007-08||FY2006-07||FY2005-06|
Basic research and development
Technical quality assurance
R&D Activities (FY2007-08)
ThyssenKrupp Steel and Japan's second-biggest steel producer JFE Steel Corporation have jointly developed a new multiphase steel for automotive applications. It has a minimum strength of 780 megapascals (MPa), similar to that of the advanced ultrahigh-strength steels CP-W 800 from ThyssenKrupp Steel and NANO 780 from JFE. but with up to 40 percent higher elongation compared with conventional 780MPa high-strength steel. Typical applications of the newly developed steel include automotive body structural parts. ThyssenKrupp Steel and JFE have been working together closely since 2002. (From a press release on Jan. 25, 2008)
The Company developed a new titanium alloy for auto exhaust systems which can withstand temperatures of up to 1,000 degrees Celsius.
The Company has developed bushing-less connecting rod, which permits further progress in truck engines.
(As of Sep.30)
In FY2007-08, the Group invested 4,282 million euros, 43% more than a year earlier. 4,018 million euros were spent on property, plant and equipment and intangible assets, while the remaining 264 million euros were used for acquisitions.
The expenditures were dominated by the two major strategic projects in Brazil and USA. The construction of the new steel mil in the Brazilian state of Rio de Janeiro accounted for asset additions of 1.7 billion euros. Around 210 million euros was spent on the construction of the processing plant near Mobile in Alabama.
ThyssenKrupp Steel USA, LLC, and ThyssenKrupp Stainless USA, LLC, broke ground on the site of its 3.7 billion USD carbon and stainless steel processing facility in Calvert, Alabama. The commencement of operations is expected to be in March 2010. (From a press release on Nov. 2, 2007)
Capital expenditures in the Technologies unit reached 763 million euros. More than half the funds were used to expand manufacturing capacities for existing and new products. Other major uses included measures to maintain existing operations and strengthen efficiency. Most of the investment was carried out in Germany, North and South America, China and India.
- Mechanical Components Business Unit
Capital spending at Mechanical Components focused on expanding production capacities and increasing efficiency. Investment was made into making final assembly of assembled camshafts more flexible. In the crankshaft area, the efficiency of forging particularly for low-cost car camshafts was significantly increased.
-Automotive Solutions Business Unit
New assembly lines for the production of mechanically adjustable steering columns were purchased and existing lines were modernized. The assembly of DampTronic shock absorbers was optimized. Investments in new automated lines will increase both production capacity and process reliability.