Johnson Electric Group Business Report FY ended Mar. 2011

Business Highlights

Financial overview

(in million USD)
  FY2010 FY2009 Rate of change
Sales 2,104.03 1,741.0 21 Note:1)
Operating profit 235.67 110.6 113.08 -
Profit before taxation 226.41 103.8 118.12
Profit after taxation 190.36 85.9 121.61
Automotive Products Group (APG)
Sales 1,149.62 933.7 23.13 Note:2)

The 21% increase in total sales to US$2.1billion reflected a sustained recovery in demand from European and North American customers and continued growth in emerging markets, particularly China. All of the Group's  core business units achieved positive sales improvements.

Sales in FY2010/11were US$1,149.6 million, up 23% from US$933.7 million the previous year. Excluding currency  effects, sales grew by 26% year-on-year. This was the result of expanded demand from Original Equipment Manufacturers (OEMs) in fast-growing emerging markets, particularly China, the market recovery in North America, increased global demand for German luxury vehicles and the successful launch of leading edge programs targeting improved engine efficiency and  reduced emissions. These factors more than offset the adverse impact on revenue from the discontinuation of government stimulus measures.

 Automotive Products Group

<By Regions>
-Excluding currency effects, sales growth from FY2009/10 to FY2010/11: Overall 26%, Asia 32%, Europe 24%, Americas 23%.

-In China, market demand for comfort, convenience and green features expanded to mass vehicles segments. The Company's  products for doorlocks, window-lifts, engine air and fuel management were particularly successful in this market. 

-The Company increased its presence  in other Asian countries as well. For example, the Company achieved higher sales to fast-growing Korean tier one suppliers and OEMs. The Company accomplished this by establishing focused engineering teams that helped improve its responsiveness to the needs of this market.

-European exports of luxury vehicles more than offset flat domestic sales. The Company capitalised on these growth opportunities with programs focused on fuel efficiency,  lower emissions and electric vehicle development.

-The Company continued strong growth in North America with a resurgence in the truck and sport utility automotive segments. In  addition, the Company launched a number of new projects for engine air and fuel management and transmission applications.

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)

-The Company opened a new manufacturing facility in Beihai, Guangxi Zhuang Autonomous Region, China. The plant will support the micromotor needs of automotive products such as motion subsystems, actuators, switches and electronic motor control. (From a press release on August 11, 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

New product

-The Company launched new Compact DC motor product line which delivers high power density. The Compact DC product line reduces weight by 35% in a package that is 25% smaller with the same power as standard DC motors. The compact DC motors can be used for multiple automotive applications including window lifts, steering wheel locks, door locks, HVAC actuators and most other functions in the car that require DC motors. (From a press release on December 28, 2010)

Investment Activities

Capital investment

(in million USD)
  FY2010 FY2009 FY2008
Total 85.6 38.0 62.8