Mann+Hummel GmbH Business Report FY2006
|in millions of EUR||FY2006||FY2005||Rate of change||Factors|
-Sales increased nominally by 15.9 % to 1,595.3 million EUR. Internal growth amounted to 8.7 %. The remaining 7.2 % results from the Group's Joint Ventures in USA, Bosnia-Herzegovina and South Korea.
|EBIT||73.5||59.3||23.9%||-The marked increase in turnover, combined with limited cost trends, led to positive profits.
-EBIT increased by 23.9%, or from 59.3 million EUR, to 73.5 million EUR.
-In spite of unfavorable general conditions, particularly with regard to material costs development, there was a slight improvement in the profit margin on turnover, amounting to 4.6% (4.3% in the previous year).
|Automotive OEM Division|
|Sales||751.2||698.3||7.6%||-There was a 5.5 % increase in sales in Europe, compared with the previous year, to 586.4 million EUR.
-In North and South America, sales amounted to 147.5 million EUR (+16.3 %) and 17.3 million EUR (+8.1%) in Asia.
-Start of production in the air- and fluid-management product sectors, as well as concentrating its existing sites in Europe have contributed to the increase in sales.
Extending international presence
North America: Acquisition of Purolator filter business in North America from ArvinMentor >>See "Acquisition"
India: Production facility in Tumkur was inaugurated in August 2006.
Thailand: Established sales office
United Arab Emirates: Established sales office
South Korea: Set up a company
Growth in Europe
Hungary: Set up a company
France: several sites have been brought together to form a new development and production center which was officially opened in November 2006.
Czech Republic: Production plant at Okrisky is expanding strongly, and is being extended with additional production and logistics buildings.
Bosnia-Herzegovina: Integration of MANN+HUMMMEL BA J.S.C. with the UNICO-FILTER*brand was completed according to plan in 2006.
*Acquired in December 2005
Germany: Extended and modernized its facilities in Speyer, Bad Harzburg and Marklkofen
-On January 24, 2006, the Company announced to supply the new bypass valve with DaimlerChrysler's petrol engines and Audi's V8 Otto engines. The new bypass valve ensures that the pressure drop in the oil separation system does not lead to undesirable noxious emissions or to engine damage.
-In June 2006, the Company revealed a resonator for the Mercedes Benz Series 500 Actros engines. The Group developed this acoustic component in close cooperation with DaimlerChrysler. The V6 and V8 Actros engines contain a resonator unit which is supplied in two variants for engines with single or double air compressors. Vibration welding is used to produce the 35% glass fiber polyamide resonator, which is resistant to both oil and temperature.
-The Company has installed the first oil module for a Japanese vehicle manufacturer.
-With effect from 30 March 2006, the Bosch Group and the Company took over the Purolator filter business in North America from ArvinMentor. Purolator has around 1,000 associates. At its site in Fayetteville, North Carolina, it produces filters for both the OE and aftermarket sectors, and at its site in Salt Lake City, Utah, it maintains a small distribution center. Sales are focused on the North American market. In 2005, Purolator recorded sales of 267 million US dollars.
Through consistently continuing to expand its distribution network, the Company anticipates growth in sales, particularly in Asia and Eastern Europe. As general conditions remain favorable, it also expects growth in sales and profits similar to the previous year's level, with the aim of increasing the return on capital employed.
-Around 2,800 patents are registered worldwide as of end FY2006.
The Company announced that MANN+HUMMEL WAKO Co., Ltd., an oil and air filter supplier jointly established by MANN+HUMMEL GMBH of German and Wako Filter Technology Co., Ltd. of Japan, will start strengthening its development structure. The joint company will systematically entrust some development works to its shareholders' designing divisions in order to develop competitive products that meet the needs mainly of Japanese auto manufacturers. Increased development capabilities will allow the company to better respond to the customers' increased new orders for intake air systems and expand the supplier's sales. Enhancement of development capability is essential for winning new orders. The companies, therefore, will strengthen cooperation within the group to develop competitive products.
-In 2006, the Company increased investment in research and development, to take into account changes in customer requirements. The Company has, for example, developed a test rig to collect soot particle accumulations in air filter elements. Using this equipment, lengthy field trials can be simulated under near-practical conditions to determine the operating performance of the filter elements in just a few hours.
-In March 2006, the Company announced it developed a new filter media, "MULTIGRADE F" that is four times more efficient than conventional filter papers. The Filter will improve today's initial filtration efficiency from 85-99 % to 95-99.9 %. The Company significantly increased diesel fuel filter performance by using melt-blown, superfine fibers combined with a compressed cellulose substrate layer. This multi-layer filter media was optimized to greatly increase oil performance and air filter elements.
|in million euro||FY2006||FY2005||FY2004|
-The area in which much of the investment
activity in fiscal year 2006 was focused was for customer orders in
the Automotive OEM Division. Viewed across all business areas, the largest
investments were made in Germany, the Czech Republic, France, America,
India, Mexico and Brazil.
-Ongoing investment in sites and facilities was undertaken to build the new factory in India and further extend the plant in Bosnia-Herzegovina.