Mann+Hummel GmbH Business Report FY2008

Business Highlights

Financial Overview (in million euros)
  FY2008 FY2007 Rate of change
Sales 1,825 1,750 4.3 1)
EBIT 65 92 (29.3)


Automotive OEM Division
Sales 808 815 (0.8) 2)

-The sales increased nominally by 4.3 % to 1,825 million EUR and by 7.8 % after elimination of currency effects, to 1,888 million EUR. Total operating performance increased by 3.4 %. Other operating income increased by 19.5 %, compared with the previous year, to 49 million EUR. The essential factors were the proceeds from disposal of UNIVERSAL DYNAMICS, INC., Woodbridge, VA/USA and the increase in exchange gains. The reduction in released accruals had the opposite effect.

-Positive trends established in previous years for OES business continued during the first half of 2008. There was, however, a marked fall in demand in the second half of the year as a result of the downturn in the economy and more intensive activity from its customers to optimize inventories. Although business for the whole year was below the Company窶冱 estimate in the hard-hit commercial vehicle sector, sales in the passenger car segment again increased in 2008.

-In spite of the adverse economic developments in the latter half of the year, the Company succeeded in expanding its OEM business with first-tier customers in 2008. This positive trend was supported by realisation of recently acquired projects, particularly in the area of urea filtration for SCR systems (SCR = selective catalytic reduction).


-In August 2008, the Company took over a Korean company Dongwoo, a market leader for automotive filters in Korea and was previously its Joint Venture. With the new company, MANN+HUMMEL Dongwoo, the Company aims to strengthen direct contacts with Korean customers and generate sales with their overseas sites in China, India, the USA and Eastern Europe.

New Company

-The Company will establish the fourth facility in China. This company, to be located in Jiading, a district of Shanghai, will mainly manufacture filter systems and filters for the automotive OEM and aftermarket. The groundbreaking is expected in January 2009 while the production facility will be in place by January 2010. It will also be its China headquarters and the base of its Asian R&D centre. (From a press release on Aug. 21, 2008)


R&D Structure
-Approximately 3,200 patents are registered worldwide as of end FY2008.
-The Company concentrated on expanding its local engineering activities in important customer markets in 2008, extending its development activities in India and Japan. Certification to the new Engineering Management System has also been awarded to four sites.

Product Development
In General
-Many projects concentrated on the reduction of CO2 emissions through greater efficiency, a reduction in weight and the use of regenerative energy sources. For combustion engines, for example, these included development of components for smaller capacity and turbocharged engines, the Company窶冱 products窶 compatibility with alternative fuels, and the first filter components for electric vehicles. In the production process, it has been concentrating on reducing energy consumption by new, quicker processing methods and the use of recycled plastics.

A New Air-oil Separator
-A new air-oil separator box with bayonet clamp was developed for compressors. Lower energy consumption is the main advantage of this new box, thus most effectively utilizing resources and reducing CO2 emissions from the compressor. This was achieved through improved performance parameters with regard to the pressure loss of the filter. Further advantages for customers included the copy protection, which was very favorably received in the aftermarket, and longer service life for filters.


-In the crankcase ventilation area, the ProVent range was complemented by the addition of a model suitable for smaller engines. There are currently five model sizes in the range, which cover the full spectrum of diesel engines from 20 to 3000 kW.

In the fuel filter area

-The primary objective in 2008 was to extend a standard range. Attention was also focused on further development of the pre-filter and main flow fuel heads. In addition, market- and customer-focused product development and production of fuel pre-filters has been established in Asia and Russia, together with the local development departments.

Investment Activities

Capital Expenditure (in million euros)
  FY2008 FY2007 FY2006
Total 93 73 67

-During FY2008, the Company undertook investment world-wide to establish and optimize the infrastructure at various locations, concentrating particularly on the largest site in Germany, Marklkofen, as well as production facilities in Mexico and China. Viewed across all divisions and business units in each country, the largest investments were made in Germany, China, Brazil and France.

Overseas Investment

-In November 2008, representative offices were opened in Indonesia, Taiwan, Vietnam, Malaysia and the Philippines. Through setting up these offices, the Company is sending a clear message to its customers in the area regarding customer focus and loyalty.

-In the next few years, the Company will invest in its facility in Portage, Michigan, enhancing both product development and manufacturing facilities, to expand its filtration technology. The Portage facility along with the South Bend location began production of three new products in 2007 and anticipates four more program launches in 2008 for domestic and transplant OEMs. With the recent joint venture to acquire Purolator products, the Company is staffing aggressively to pursue liquid filtration business. A significant part of its North American growth plan is also based on its new facilities in Queretaro, Mexico. The new plant is part of a commitment to grow their NAFTA presence. The new Queretaro facility enables the company to increase both OEM and aftermarket activities, with a special focus on filtration production. (From a press release on Apr. 17, 2008)