IAA 2015 - MANN+HUMMEL releases its half-year figures
• Turnover in first six months of 2015 has risen to 1.44 billion euros • Expectations fulfilled through stable operating income (EBIT) • The core workforce is growing due to acquisitions • Slight increase in expected turnover for the year
Ludwigsburg / Frankfurt, September 15, 2015 – The MANN+HUMMEL Group (www.mann-hummel.com), based in Ludwigsburg, has grown by 3.6% (exchange rate adjusted) in the first half of 2015, with a half year turnover of 1.44 billion euros (previous-year period: 1.39 billion euros). This also includes the merging of the Vokes Air acquisition. The operating result for the first half of 2015 is stable, thus living up company expectations. Permanent staff numbers have risen to around 16,700, in particular as a result of company acquisitions. With the announced acquisition of US competitor Affinia, MANN+HUMMEL continues to pursue its global growth strategy. Moreover, at the IAA automobile exhibition in Frankfurt, many new products were on show.
Global filtration specialist MANN+HUMMEL can look back over a favorable first six months of 2015. A key driver of the positive sales and EBIT development was the automotive sector. Here, thanks to strong pre-series sales and positive currency effects, the company has performed much better than planned. Falling sales in China, Russia and Brazil were balanced out by positive results in other regions (America, Europe).The industrial filtration sector remains below expectations. The one-time effects of previous acquisitions have had a negative impact on results.
"Alongside South America and Russia, development in China is still strained", Manfred Wolf, member of the Management Board of MANN+HUMMEL, explains. Thus the production launch of the new plant in the Russian special economic zone in Togliatti has been "put on hold for the time being". Wolf expects a "significant cooling off" of business in Russia in the second half of the year: "As a result, I do not expect a noteworthy increase in sales for the entire year. We will keep a close eye on how costs develop and respond quickly and flexibly to any fluctuations in the individual markets."
MANN+HUMMEL implemented necessary restructuring in Brazil after a tough year in 2014 saw a decline in revenue of approximately 30% in the original equipment business. Wolf feels the company is now in a better position to deal with the persistent difficult market conditions in Brazil than it was a year ago.
Referring to the new production facilities in Chongqing in the south west of China, Wolf explains that "even if the Chinese market is currently weakening, we are still preparing for further growth there". With the development and production of filter systems, the new company is the sixth subsidiary to join the existing Chinese production network.
The filtration expert has also been reviewing its production strategy since 2013, and over the past few months, has announced the restructuring of its German original equipment facilities. The company will reduce headcount by almost 500 jobs in Germany alone; including 275 positions at its headquarters in Ludwigsburg, 150 positions in Bad Harzburg (Lower Saxony) and 70 positions in Sonneberg (Thuringia).
At these German locations, MANN+HUMMEL is no longer able to manufacture competitively in some areas. Forced redundancies are to be avoided in these job cuts. Instead, the company is implementing a voluntary redundancy program and transfer company. MANN+HUMMEL currently has a workforce of 6,100 in Germany.
Over the next few years, the plan is to turn the Ludwigsburg site into a driver of innovation, which will promote research and development and the strategic direction of the group throughout the world. To do so, MANN+HUMMEL is currently investing over 30 million euros in the construction of a technology and validation center and is fully modernizing its headquarters.
"For the past 75 years, innovation has been the driving force in our company history and a central pillar of our value creation process", says Wolf. MANN+HUMMEL is ranked the 24th most active patent applicant in Germany. In May of this year, the German Patent and Trade Mark Office (DPMA) published corresponding figures for 2014. For the fourth time in a row, this lists the Ludwigsburg company in the Top 50 (2011: Place 43, 2012: Place 46, 2013: Place 25). MANN+HUMMEL holds over 3,000 patent applications, patents and registered designs.
The acquisition of the Affinia filtration business, announced in mid-August 2015, will make a major contribution to company growth. The competencies and customer relationships of MANN+HUMMEL and Affinia are complementary. In the future, it will be possible to offer a range of products and services with even greater performance. This will also apply in particular for market sectors such as the heavy duty sector in the USA and hydraulic filtration.
"In 2016, we will celebrate 75 years of MANN+HUMMEL", Manfred Wolf states. "With the acquisition of Affinia, we will employ 20,000 staff and enter a new dimension –subject to the approval of the cartel authorities." However, the experienced general manager sees no reason for triumphalism. "Even if we do achieve additional growth potential with Affinia, we can still see the inherent external risks, and for the current year and beyond, we will remain optimistic. We are moving in the right direction This is confirmed by our customers through their new orders and by the many different awards and distinctions given for the quality of our products and services."
MANN+HUMMEL at IAA 2015
At the IAA exhibition, in hall 8 at booth A 41 MANN+HUMMEL presents its latest developments. These include:
• The new Flexline generation of air filters. This compact but nevertheless high-performance filter utilizes the installation spaces in the best possible manner thanks to its flexibly curved outer contours.
• The active intake module with integrated charge air cooling and eBOOSTER. This integrative concept, with its cutting-edge technology, elicits additional power reserves from the engine, while simultaneously optimizing component weight and making a significant contribution to fuel consumption and the reduction of CO2 emissions.
• A three-stage fuel filter element for the filtration of modern low-sulfur and highly additive-enhanced diesel fuels, which contain biofuels, achieves separation in excess of 90% throughout the entire service interval of the filter element.
• ACAD, the active charge air duct, is a new development which increases the specific torque and engine power output by over 10%. The ACAD active charge air line is ideal for three-cylinder and four-cylinder turbo engines.
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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 16,000 people at more than 60 locations worldwide, the company achieved turnover of about 2.8 billion euros in 2014. The group’s product portfolio includes air filter systems, intake manifold systems, liquid filter systems, cabin filters and technical plastic parts, 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.