GERMANY: Mahle reveals 2013 sales up 12.7% to EUR6.9bn
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.
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
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
? 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
Press release on the 2013 business year of the MAHLE Group, 4/17/2014, Page 3
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.
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
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
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
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