Engineering
Engineering
Engineering
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2.7 Management report on the Group Expected developments and and associated opportunities and and risks risks<br />
Implementing the Strategic Way Forward<br />
and improving our financial situation are are<br />
our main goals for 2011/2012.<br />
Important sales markets<br />
Demand for finished steel, million t<br />
104<br />
2011* 2012*<br />
World 1,398 1,474<br />
Germany 39 40<br />
USA 89 94<br />
China 643 682<br />
Vehicle production, million cars and light trucks<br />
World 74.1 77.4<br />
Western Europe 15.0 15.3<br />
Germany 6.1 6.1<br />
USA 8.5 9.0<br />
Japan 7.4 8.8<br />
China 16.1 17.0<br />
Brazil 3.5 3.8<br />
Machinery production, real, in % versus prior year<br />
Germany 15.0 3.0<br />
USA 13.0 6.0<br />
Japan (2.0) 8.0<br />
China 15.0 13.0<br />
Construction output, real, in % versus prior year<br />
Germany 3.6 1.7<br />
USA 1.6 3.1<br />
China 10.4 9.9<br />
* Forecast<br />
Construction – Construction activity will continue to show regional differences in 2012. In Western Europe<br />
little more than stagnation is expected, while the prospects for some Central and Eastern European countries<br />
remain brighter. After the deep slump of previous years, the US construction sector could make a slight<br />
recovery with growth of around 3%. Construction activity in India and China will remain strong, with growth<br />
rates of 8% and 10%, respectively.<br />
Expected results of operations<br />
As already reported, effective September 30, 2011 the legal, organizational and contractual conditions were<br />
created for the separation of the Stainless Global business area; it is thus now classified as a discontinued<br />
operation. The following forecast therefore relates exclusively to the Group’s continuing operations, which no<br />
longer include Stainless Global.<br />
Sales and earnings – In fiscal 2011/2012 priority will continue to be given to the implementation of the<br />
Group’s Strategic Way Forward. This integrated strategy encompassing portfolio optimization, change<br />
management and a strong focus on performance is aimed at improving the Group’s financial situation and<br />
increasing our strategic latitude. The corporate program impact is the central platform for this.