Newsline 2/2000 - KSPG AG

Newsline
Stockholders’ newsletter of Kolbenschmidt Pierburg
Automotive group is
outpacing the industry
Düsseldorf. As an OEM-independent
manufacturer of modules and systems
“for every aspect of the engine”, the
Kolbenschmidt Pierburg group, a member
of Rheinmetall, outpaced industry
growth in the second half of 1999. As
pointed out by the management holding
Kolbenschmidt Pierburg AG in its
recent newsletter to the stockholders,
during this period the group succeeded
in surpassing the high sales level
of the corresponding year-earlier period
by a clear 9 percent, with earnings
surging by as much as 27 percent. The
substantial improvement in earnings
during the second half of 1999 was particularly
pleasing: at € 32 million, earnings
before tax (EBT) in the latter half
of the year for the first time topped the
normally higher first six months. As a
result, a 4.1-percent return on sales
was achieved for the second half of
1999 (up from 3.3 percent for the comparable
year-earlier period). Group sales
in 1999 reached € 1.527 billion (3.7
percent up). The acquisition of the US
piston producer Zollner Pistons and
the divestment of PLU-Luftfahrttechnik
resulted on balance in a sales increase
of € 34 million. As a result, the Kolbenschmidt
Pierburg
group fully benefited
in terms of organic
growth from
the higher production
volumes of
cars (up 1.5 percent)
and commercial
vehicles (up
0.4 percent) in Western
Europe, despite
the necessary
price conces-
sions.
Kolbenschmidt
Pierburg boosted
sales in 1999 both
in Germany and outside. Due to the
stronger market position for pistons in
NAFTA countries as a consequence of
the Zollner acquisition, growth abroad
outpaced increases in Germany.
In 1999, Pistons showed the steepest
growth rate, partly due to the
start-up of diesel piston production for
Peugeot. Additionally, extra potentials
available through Zollner were immediately
exploited, Kolbenschmidt Pierburg
becoming the largest piston producer
in the United States and the second
largest worldwide.
The most comprehensive internal expansion
was shown by Air Supply/
Pumps in 1999 which, particularly
through its innovative intake manifolds,
electronic throttle bodies, valves
and pumps, generated growth of
more than € 20 million in the wake of
major series production start-ups, e.g.
throttle devices for General Motors.
Plain Bearings also achieved aboveaverage
growth rates while the declines
in the smaller divisions Aluminum
Technology (engine blocks), MotorEngineering
and Motor Service (aftermarket
business) were mainly due to temporary
effects as well as the divestment
of PLU-Luftfahrttechnik.
Tangible asset additions in 1999 totaled
€ 165 million, the high level of
the first half of the year continuing unchanged
into the second. Most of the
expenditure by the Kolbenschmidt
Pierburg group in 1999 was linked to
Motorized throttle bodies EDR-E from Kolbenschmidt Pierburg
combine all possibilities for managing the mass airflow
on modern gasoline engines.
customer projects and contracts. In
readiness for the substantial organic
growth scheduled over the years
ahead, tangible asset expenditure in
1999 was raised by 45 percent compared
with the previous year.
Major projects included expanding
capacity for the magnesium intake
6
The world’s smallest diesel piston
used in the Smart.
manifolds at Nettetal, setting-up the
production of motorized throttle devices
in Berlin, and broadening manufacturing
capacities for new product
start-ups at the piston factories in Brazil,
the United States, and France. Traditionally
a big spender, the Aluminum
Technology division (engine
blocks) made preparations in the course
of 1999 for the considerable sales
increases targeted as from 2001, by
extending its low-pressure casting capacities,
etc. The investment program
for engine block production will continue
in 2000/2001. A number of capital
assets will also be leased.
The high volume of capital expenditure
surpassed depreciation by 42 percent.
In 2000, additions to tangible assets
have been budgeted to shrink
back to the level of depreciation. The
acquisition of Zollner Pistons represented
another significant financial investment
in 1999.
Despite the 3.7-percent sales climb,
the group succeeded in limiting workforce
growth to three percent. On an
annualized average, the overall headcount
in the group was 11,335 in 1999,
and as of 31 December 1999, the Kolbenschmidt
Pierburg group had a
workforce of altogether 11,789 (up 786
from 11,003). The Zollner acquisition
accounted for 1,082 while 258 employees
left the group in the wake of
the divestment of PLU aviation business.
As of 31 December 1999, the
group employed 5,512 persons in Germany.
Of the total 11,789 worldwide,
the non-German workforce accounted
for 47 percent. As a result of the acquisition
of the pump activities of Magneti
Marelli at the start of 2000, the number
of non-German employees rose
further to 49 percent. Kolbenschmidt
(Continued on page 7)