Johnson Electric Group Business Report FY ended Mar. 2010
|(in million USD)|
|FY2009||FY2008||Rate of change
|Profit before taxation||103.8||37.4||177.5|
|Profit after taxation||85.9||37.8||127.2|
|Automotive Products Group (APG)|
- Overall the company has seen a significant downturn in sales across all lines of business and regions following the financial crisis that impacted in the second half of FY2009. The economic downturn was exacerbated by inventory reduction programs by our customers.
- Overall gross profit margins for the full year increased from 23.3% to 27.7% due to the combination of lower raw material costs (such as copper and steel), reduced fixed costs as the impact of various restructuring actions began to take effect, and the beginnings of a recovery in sales volume. The restructuring and cost reduction initiatives included a major realignment of the Company's operations in Europe and North America where the Company has sought to consolidate manufacturing in selected locations and refocus activities in other sites towards design and precision engineering.
3) Automotive Products Group (APG)
- This performance was partly due to the fact the global automotive industry had been among the first sectors to collapse at the onset of the global crisis but has since experienced one of the fastest and steepest rates of recovery with the help of government-sponsored incentive schemes and the exceptionally strong and sustained growth in passenger vehicle sales in many emerging markets, notably China. The company today derives more than a quarter of its total automotive application sales from Asia compared to only six percent five years ago.
-Government incentives have particularly helped to generate demand for smaller vehicles, which are increasingly starting to use applications that utilize the company's products, particularly in comfort, climate and convenience applications. Increasing automation of window-lift, power seat adjustments, lumbar support, climate controls and mirror applications is contributing to growth.
-Economic growth in China has led to increased demand for automotive vehicles. The company has successfully leveraged its global capability to establish a solid base with emerging OEMs in China. Technology developed for European markets together with a manufacturing and sales capability in China is leading to growth in this key market.
-In the Americas the company supply products for vehicle platforms that were hit particularly hard by the downturn. Recently the company have won new business on major new platforms by leveraging the company's global relationship with European Tier 1 suppliers.
Restructuring-In the United States, the organization was scaled back to basic operating levels, and the Cary, North Carolina facility was closed and consolidated into our Automotive Products Group site in Springfield, Tennessee.
- In Europe, manufacturing and sales operations were affected by the severe decline in the market. A planned move to a “Principal Business Structure” was confirmed, where the activities in some of the locations in Europe were consolidated into several major sites, or hubs. Murten, Switzerland, was confirmed as the management and operating centre for the European region.
Environmentally friendly products-Growth in environmentally friendly products leads to increased demand for fuel efficient vehicles with low emissions. The company's innovative products for engine air management and engine fuel management applications are enabling higher performance from smaller engine sizes and enhance fuel efficiency through improvements in transmission technology. The newly developed braking products for anti-lock braking systems, electronic stability control and electric parking brakes are helping to meet the growing market requirement for increased safety.
New Plant-The Company announced that one of its subsidiaries, Johnson Electric International AG, will open a new plant in Chennai, India to increase production of its automotive motors. The leased 22,000 sq. ft. plant will initially employ 100 staff. It will produce motors for engine cooling fan modules and gear motors for window lift systems. (From a press release on January 6, 2010)
R&D Structure-Engineering centers are located in Hong Kong, Germany, Switzerland, UK, Italy, Japan, China, Israel and the USA.
>>>Technical/ R&D centers
|(in million USD)|