Mahle says total 2013 sales increased 12.7% in comparison with the previous year to EUR6.9bn.

The company notes at EUR1.41bn, gross profit exceeded the previous year’s level, but recorded a decline to 20.3% in gross margin.

Aside from regionally varied business development and significant negative exchange rate effects, the supplier adds changes to the consolidation group had a positive impact on the figure.

As of 30 September, 2013, the majority acquisition of the company's shares in the former Behr Group was concluded. The unit now trading as MAHLE Behr was thus fully consolidated for the first time in the fourth quarter of 2013.

The automotive business of MAHLE Behr is incorporated within the new Thermal Management business unit.

Behr Thermot-tronik (BTT) and the joint ventures Behr-Hella Thermocontrol (BHTC) and Hella Behr Plastic Omnium (HBPO) are managed as the Thermostats and Valves, Control Units, and Front-end Modules profit centres.

The MAHLE Group now consists of five business units and seven profit centres.

The changes to the consolidation group had a positive impact on sales of EUR957m.

As well as sales from MAHLE Behr from October, sales from the acquisition of the US company, RTI Technologies, for workshop equipment are also included in the number.

Show the press release

 

Press release on the 2013 business year of the MAHLE Group, 4/17/2014, Page 1 

 

Press release on the business development of 

the MAHLE Group in 2013 

 

 

Stuttgart, April 17, 2014 

2013 business year dominated by the ongoing strategic development 

of the product portfolio 

 

 

Sales 

Total sales increased by 12.7 percent in comparison with the previous 

year to EUR 6,941.3 million. Aside from regionally varied business 

development and significant negative exchange rate effects, changes to 

the consolidation group had a positive impact on this figure. 

 

As at September 30, 2013, the majority acquisition of the company’s 

shares in the former Behr Group was concluded. The unit now trading as 

MAHLE Behr was thus fully consolidated for the first time in the fourth 

quarter of 2013. The automotive business of MAHLE Behr is incorporated 

within the new Thermal Management business unit. Behr Thermot-tronik 

(BTT) and the joint ventures Behr-Hella Thermocontrol (BHTC) and Hella 

Behr Plastic Omnium (HBPO) are managed as the Thermostats and 

Valves, Control Units, and Front-end Modules profit centers. The MAHLE 

Group now consists of five business units and seven profit centers. 

 

The changes to the consolidation group had a positive impact on sales of 

EUR 956.7 million. Besides sales from MAHLE Behr from October, sales 

from the acquisition of the U.S. company RTI Technologies for workshop 

equipment are also included in this figure. 

 

Taking into consideration the newly acquired units, just under 50 percent 

of sales in 2013 were generated in Europe, 21 percent in North America, 

and ten percent in South America; Asia accounted for 19 percent. With 

Durban and Port Elizabeth, MAHLE now also has production locations in 

Africa for the first time, thanks to the majority acquisition of the company’s 

shares in the former Behr Group.  

Press release on the 2013 business year of the MAHLE Group, 4/17/2014, Page 2 

 

As a result of the distinct global positioning of the group and the partly 

dramatic exchange rate shifts—primarily in the Japanese yen, Brazilian 

real, and U.S. dollar—the MAHLE Group sales, at EUR 311.7 million, were 

considerably burdened by foreign currency effects. 

 

The business units experienced mixed fortunes in terms of development: 

 

? The Engine Systems and Components business unit fell short of the 

previous year’s level. On the one hand, the exchange rate effects led 

to significant declines in sales; on the other hand, business 

development was adversely affected by the partly weak commercial 

vehicle and off-highway market as well as the market weakness of 

some European passenger car manufacturers. 

 

? The Filtration and Engine Peripherals business unit benefited from 

the increasing complexity of engine peripherals in downsizing engines 

as well as the technological strength of the group and achieved a solid 

sales growth of 6.7 percent after adjustment for negative exchange rate 

effects. 

 

? The new Thermal Management business unit generated sales of EUR 

747 million between October and December, thereby contributing 

10.8 percent to group sales. 

 

? Sales from the Aftermarket business unit slightly exceeded the 

previous year’s value. 

 

? Industrial business fell short of expectations. 

 

Adjusted for first consolidation and exchange rate effects, organic growth 

of two percent was achieved despite subdued market demand in many 

areas. 

 

 

Press release on the 2013 business year of the MAHLE Group, 4/17/2014, Page 3 

 

Profit 

At EUR 1,410.6 million, gross profit exceeded the previous year’s level. 

However, a decline to 20.3 percent in gross margin was recorded. This 

was largely due to special effects: the first consolidation of the MAHLE 

Behr Group as of October 2013 had a positive effect, but the depreciation 

and amortization of EUR 25.7 million on obligatorily disclosed hidden 

reserves in accordance with the German Commercial Code (HGB) as part 

of the purchase price allocation adversely affected profit. Furthermore, 

significant expenses for restructuring measures in western Europe placed 

a burden on gross profit. Since MAHLE continues to expect restrained 

market development in Europe for established products in particular, 

definite actions were taken to reduce potential overcapacities. 

 

Despite the very extensive restructuring measures in western Europe, 

which resulted either in direct expenditure or accruals, result from ordinary 

activities of EUR 306.5 million was achieved; return on sales amounted to 

4.4 percent. At EUR 235.6 million and with a return on sales of 

3.4 percent, net income for the year was 58.4 percent above the previous 

year’s level. The financial result improved to EUR –116.2 million (previous 

year: –136.8 million). In 2012, it was influenced by negative special effects 

of the former Behr Group; a positive result was achieved, however, in the 

first nine months of 2013. 

 

Overall, the target corridor of our operating return on sales (EBIT ratio: six 

to seven percent) was secured. In view of the subdued business 

development in the first few months as well as the one-off expenses 

relating to restructuring, an overall positive result was achieved in 2013. 

 

Capital expenditure 

At EUR 397.4 million, capital expenditure on tangible fixed assets 

exceeded the previous year’s figure by EUR 73.6 million. The ratio to 

depreciation and amortization was just under 140 percent in comparison 

with 120 percent in the previous year. The primary aim was to create the 

conditions for further growth. Investments were largely made to prepare for 

additional series orders and to implement new production technologies. 

Furthermore, the group invested in order to increase the level of 

automation and to rationalize production processes. Extensive investment  

Press release on the 2013 business year of the MAHLE Group, 4/17/2014, Page 4 

 

activities were also carried out in key growth markets. Important projects 

included the construction work at the Brazilian logistics and Aftermarket 

location in Limeira near São Paulo, a new logistics center in 

Obninsk/Russia, new production locations in China and Indonesia, as well 

as the expansion of research and development centers in Detroit/USA and 

Shanghai/China. 

 

Human resources 

As at the reference date of December 31, 2013, the headcount totaled 

64,345 and was therefore around 35 percent above the previous year’s 

value. The increase of 16,683 in the headcount is almost exclusively due 

to the integration of the MAHLE Behr employees. 

 

MAHLE supports the development of professionals; worldwide, MAHLE 

employees attended 53,426 qualification activities. MAHLE received the 

outstanding automotive employer award in Europe. 

 

The new, enlarged MAHLE family totals 64,345 employees on five 

continents, at over 140 production locations in 28 countries and ten major 

research and development centers. 

 

Press release on the 2013 business year of the MAHLE Group, 4/17/2014, Page 5 

 

Development of the MAHLE Group 

 

BMTS starts subsidiary in China 

Bosch Mahle Turbo Systems, the 50:50 joint venture with Robert Bosch 

GmbH, has founded a wholly owned subsidiary in China. The specialist in 

exhaust gas turbochargers is thus adapting to the continued strong market 

growth of turbocharged gasoline engines in currently the world’s largest 

automotive market. Turbochargers for the gasoline engines of locally and 

globally operating customers will be produced in a new building on the 

premises of the MAHLE Technology Center in Shanghai/China, initially 

comprising 5,000 square meters. The capacity amounts to more than one 

million turbochargers per year, which has already been secured thanks to 

customer orders. Series production is to start in the fourth quarter of 2014. 

 

Acquisition of majority shareholding in Behr—now MAHLE Behr 

In 2013, the largest individual investment was the increased share in the 

former Behr Group to 50.71 percent. The following interdisciplinary and 

service functions will be united: sales, advanced engineering, purchasing 

of production materials, finance and accounting, IT, quality and 

environment, legal, corporate communications/PR, and HR. The 

integration should be completed swiftly in all world regions during 2014. 

 

Holding in Kokusan Denki Co., Ltd. 

The company, which is listed on the Tokyo stock exchange, specializes in 

mechatronic products. In 2013, MAHLE’s initial holding was 30.82 percent; 

this share was increased to 38.87 percent at the start of 2014. Kokusan 

Denki Co., Ltd. has about 820 employees in Japan and generated 

consolidated sales of around EUR 160 million during the 2012/2013 

business year. 

 

Increased participation in MAHLE India Pistons Ltd. 

At the end of 2013, MAHLE increased its participation in the Indian piston 

manufacturer MAHLE India Pistons Limited from around 60 percent to 

100 percent, in order to independently conclude investment measures and 

technology transfers in the future. The plant, which is located in Chennai in 

southern India, generated sales of approximately 15 million euros in 2013. 

 

Press release on the 2013 business year of the MAHLE Group, 4/17/2014, Page 6 

 

Outlook for the 2014 business year 

 

With its new structure, MAHLE plans to achieve sales of around ten billion 

euros in 2014—depending on the development of the automotive markets 

and exchange rates. The targeted expansion of the product portfolio is to 

be pursued. Thermal management, an important topic for the future, is 

now one of the central themes. MAHLE additionally plans to continue its 

expansion in the field of mechatronics. The aim is to establish a long-term 

presence of the group in key technology and growth fields in order to 

continue strengthening its competitive position in view of current 

technological challenges. 

 

The group’s globalization strategy continuously pursued in the past few 

years represents a major competitive advantage. In order to safeguard 

future competitiveness, MAHLE is driving forward the continuous 

expansion of its international orientation. In 2014, four new plants in China 

and Indonesia will commence production. Preparations for two new plants 

are also progressing in Mexico. Extensive expansion-related investments 

are planned in Romania in the next few years. 

 

The solid equity base and strengthened liquidity thanks to the continued 

diversification of financing sources have paid off against the backdrop of 

volatile markets. This course of action is to be continued in 2014 in order 

to safeguard financial independence in the long term. 

Original source: https://www.mahle.com/media/press/press-releases/2014/3-business-development-for-business-year-2013_20140417_short.pdf