MANN+HUMMEL on stable course
· Strong euro dampens sales growth
· Sales increase to 2.7 billion euros
· Earnings (EBIT) increase to 151 million euros
· EBIT margin of 5.6 percent remains stable at previous year's level
· 15,231 employees at 60 locations
Ludwigsburg, 3 April 2014 – The MANN+HUMMEL Group, based in Ludwigsburg, Germany, has developed positively against the backdrop of fluctuating economic conditions in 2013. At its financial press conference, the filtration specialist reported on its business development in 2013: sales of 2.68 billion euros (+ 2.3 percent) and a Group result (EBIT) of 151 billion euros (+ 3.6 percent) were recorded in the year under review.
MANN+HUMMEL puts the flat sales growth curve down to the strength of the euro. The single currency gained significant value against the Brazilian Real as well as against the US dollar last year. Gains in market share and positive market trends in the local currencies were therefore frequently neutralised in the consolidated balance sheet in euros. Adjusted for exchange rate effects, sales growth amounted to five percent, exceeding the previous year's reference value (3.6 percent)
Sales increase in the automotive sector
For 2013, MANN+HUMMEL reports a sales increase of some 60 million euros to 2.68 billion euros. Determining factors in this regard are principally sales increases in North America and Asia, both in the automotive original equipment segment and in the aftermarket business. The Industrial Filtration business unit remained at the previous year's level as a result of stagnating demand for capital goods.
Alfred Weber, President & CEO, was satisfied with the results: "We achieved good figures in terms of sales and earnings in 2013. The market environment remains volatile and we go into 2014 with cautious optimism."
Investments up in 2013
"We have again increased our investments in tangible assets and Research & Development. This ensures the conditions for continuing sustained growth," explains Frank Jehle, Deputy CEO & CFO.
MANN+HUMMEL spent 98 million euros on Research & Development in 2013, an area in which it employs nearly 1,000 highly qualified employees. The German Patent and Trade Mark Office (DPMA) has recognised the filtration specialist's innovative strength for the third year in succession. In 2013, the company has again garnered a position on the list of Germany's 50 most active patent applicants.
In response to the above-average growth in Asia, a new plant was opened in Changchun (China). Moreover, production capacity was significantly expanded at the US locations of Portage (Michigan) and Dunlap (Tennessee). In Europe, MANN+HUMMEL also invested in numerous existing plants as well as opening a new Logistics and Testing Centre in Okrisky (Czech Republic).
More than 15,200 employees worldwide
In 2013, staffing levels amounted to 15,231 employees at 60 locations. The growth in personnel was mainly attributable to Asia and North America.
"Our employees have worked with commitment and passion for our company in 2013. I would like to thank them in the name of the Board of Directors and the Partners," said Weber.
Particularly in the growth markets, the company needs engineers and qualified specialists in order to meet the sustained high demand and to further advance innovations and future technologies.
At the start of the training year 2013, 74 young people began their professional life as apprentices and Baden-Württemberg Cooperative State University (DHBW) students within the MANN+HUMMEL Group. In total, the number of apprentices in Germany at the end of 2013 amounted to 228. The Group offers apprenticeships similar to a DHBW course of study at all of its German locations.
Outlook for 2014
Although CFO Jehle anticipates further economic recovery in 2014, he still remains cautious: "The financial markets have not yet achieved a sustainably sound situation. In 2014, we will continue to focus on the high flexibility of MANN+HUMMEL in particular. In the process, we will continue to invest in growth and the expansion of our market position."
Following last year's announcement of the construction of a new Technology Centre in Ludwigsburg to the tune of more than 30 million euros, the project has reportedly progressed. The new car park in the western part of Ludwigsburg, a prerequisite for the commencement of construction work, is set to open in June. The ground-breaking ceremony for the new building is then to be held in late summer at the site of the current parking lot.
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The MANN+HUMMEL Group is a leading global expert for filtration solutions and development partner and original equipment supplier to the international automotive and mechanical engineering industries. Employing 15,100 people at more than 50 locations worldwide, the company achieved turnover of about 2.77 billion euros in 2013 (preliminary figures). The group’s product portfolio includes air filter systems, intake manifold systems, liquid filter systems, cabin filters and plastic sound components (known as 'symposers'), as well as filter elements for vehicle servicing and repair. For general engineering, process engineering and industrial manufacturing sectors the company’s product range includes industrial filters, a series of products to reduce carbon emission levels in diesel engines, membrane filters for water filtration and filter systems.