MANN+HUMMEL GmbH Business Report FY ended Dec. 2018

Financial Overview

 (in million EUR)
  FY ended Dec. 31, 2018 FY ended Dec. 31, 2017 Rate of change (%) Factors
Net Sales 3,955.3 3,892.1 1.6 1)
EBIT 93.6 185.1 (49.4) 2)

1) Net Sales
-The Company’s net sales for the fiscal year ended December 31, 2018 increased by 1.6% from the previous fiscal year to EUR 3,955.3 million. Excluding currency exchange rate effects, the Company’s sales increased by 5.4% over the previous year. The primary drivers for the increase in sales are due to the Company’s inquisition of Tri-Dim, which increased sales by EUR 42.4 million, and the acquisition of Oltremare, which contributed an increase of EUR 20.6 million in sales.

-In the fiscal year ended December 31, 2018, the Company’s EBIT decreased by 49.4% to EUR 93.6 million. The Company’s earnings were significantly impacted by effects, including impairments on intangible assets of EUR 40 million, and restructuring costs totaling EUR 13.6 million.


-The Company announced it has finalized the acquisition of Tri-Dim Filter, a U.S.-based air filtration company. Tri-Dim is a privately-held air filtration company which provides a full-line of HVAC filtration products and services and is the largest privately held air filtration company in North America. Tri-Dim is a provider of a full-line of HVAC filtration products and services, including air and liquid filtration, heating and air conditioning supplies, cleanroom filtration, air purification equipment, gas phase filtration, and air testing and remediation. The acquisition provides the Company with greater access to the U.S. and Canadian air filtration markets and extensive growth opportunities. (From a press release on August 31, 2018) (From a press release on July 19, 2018)

Business Partnerships

-The Company and Chassis Brakes International have signed a strategic partnership agreement to develop brake systems with an add-on particle filter to reduce particulate emissions from passenger vehicle brakes. The Company's brake-dust particle filters are compact, recyclable and are designed to have no impact on overall brake performance. In addition, the new system solution under development will take up no additional space and will be easy to maintain through normal brake service intervals. (From a press release on September 13, 2018)

Recent Developments

-Due to diminished earnings in the fiscal year ended December 31, 2018, the Company is planning to implement a global cost savings initiative that will reduce its cost structure by approximately EUR 60 million. The initiative is expected to begin by the end of 2019, with the Company realizing the effects of the initiative in 2020.


-The Company was named a CES 2018 Innovation Awards Honoree for Senzit, the world's first smart air filter monitor. Through smart technology, Senzit provides a new method of monitoring air filter status. Senzit will deliver a new level of connectivity across vehicle types and brands with a central portal to reduce downtime and repair costs. (From a press release on January 9, 2018)

-The Company’s Mann+Hummel Thailand subsidiary received the Regional Quality Award from Nissan in the Engine & Drive category. The plan manufactures air cleaner systems and intake manifolds.

-In April 2018, the Company was awarded a Supplier of the Year award from General Motors, marking the 23rd time that the Company has received the award. The award specifically recognized the Company’s air induction systems.

R&D Expenditure 

 (in million EUR)
FY ended Dec. 31, 2018 FY ended Dec. 31, 2017 FY ended Dec. 31, 2016
Total 140 133 126

-The Company aims to invest approximately 4% of its sales every year in research and development.

R&D Structure

-As of December 31, 2018, the Company has more than 1,200 employees working in research and development.

Product Development

Plastic-aluminum hybrid design for liquid filter modules
-The Company has developed a plastic-aluminum hybrid design for liquid filter modules used in high stress applications. The design combines the mechanical strength of metal with the flexible design capability of plastic. A skeleton made of aluminum ensures the necessary stability at highly stressed points. The aluminum skeleton is then sheathed in a functional plastic sheath in which all liquid-carrying elements are arranged. The aluminum absorbs and distributes large local mechanical forces. The plastic component encloses the metal as a shell and contains the filter element and the liquid guide. (From a press release on September 19, 2018)

Wavelock spin-on filter concept
-The Company presented the innovative Wavelock spin-on filter concept which enables easy, quick and clean servicing. The system was developed for use in off-road applications and offers an engine-mounted variant and a chassis-mounted variant. A key element of the design is a bayonet lock. When a filter change is due, the filter can be removed and refitted with an easy rotational movement without the need for any tools. The revolutionary filter concept has already been in operation since the beginning of the year for a garden tractor of a U.S. manufacturer. There are ongoing tests for further application areas in on- and off-road applications. (From a press release on September 19, 2018)

Brake dust particle filter
-The Company’s newly developed brake dust particle filter significantly reduces brake dust emissions of vehicles such that fewer brake dust particles escape into the environment. The filter is adaptable to existing installation spaces around disk brakes. The Brake Dust Particle Filter can be used for any type of powertrain, including electric, hybrid, gasoline or diesel vehicles. After successful field testing of the system as part of its Fine Dust Eater project in the past few months, the Company will present the Brake Dust Particle Filter for both passenger and commercial vehicles in September during IAA Commercial Vehicles in Hanover, Germany. (From a press release on September 7, 2018)

Fine dust particle filter
-The Company’s newly developed fine dust particle filter can improve the particulate emissions balance of vehicles and reduce air pollution. The company will exhibit the fine dust particle filter at the IAA Commercial Vehicles. The Company introduced the system for the first time in 2017 at a very early stage in its development. Since then, the filter specialist has tested the technology in its Fine Dust Eater project, with experimental vehicles in Germany, India, and China. The Company’s test have shown that at high particulate pollution levels in city traffic, the Fine Dust Particle Filter removes more particulates from the air than a vehicle with a modern internal combustion motor actually emits from its exhaust. The filter achieves the targeted separation efficiency of 80% of PM10 particulates. (From a press release on September 4, 2018)

Gearbox oil filters for e-axles
-The Company has developed special gearbox oil filters for the e-axle which use the new Multigrade eM-CO filter media. The filter media are specially designed to meet the requirements for the oil in regards to the lubrication and cooling of e-axles. The Company is able to transfer the advantages of fully synthetic filter media used in other oil filter applications. The Multigrade eM-CO filter media requires less space as the developers were able to utilize the Company‘s proven pleating technology, requiring only 20 millimeters for the pleating. (From a press release on May 22, 2018)


-During the fiscal year ended December 31, 2018, the Company reported more than 100 patent applications.

Capital Expenditure

(in million EUR)
  FY ended Dec. 31, 2018 FY ended Dec. 31, 2017 FY ended Dec. 31, 2016
Total (Investments in tangible assets) 154 164 151

-In the fiscal year ended December 31, 2018, the Company’s capital expenditure amounted to approximately 3.9% of its sales.

Investments outside Germany

-The Company announced that it inaugurated its second plant in Queretaro and third overall in Mexico. The Company invested USD 15 million and recruited 150 workers to start operations at the new facility. The workforce will double to 300 employees by the end of 2018 when the plant is running at full capacity. The Company plans to manufacture 15 million filters annually at the new facility. (From a Mexico-Now article on January 8, 2018)

-In October 2017, the Company celebrated the opening of a new plant in Bekasi, Indonesia. The plant is located in a SAIC-GM-Wuling supplier park and spans approximately 5,000 square meters. Operations at the plant began in July 2017, as the facility produces air intake systems to SGM Indonesia. The plant will gradually increase its production capacity in the future.