Annual Report 2001 - Bohler Uddeholm materializing visions

Segment Reporting
STRUCTURES, PRODUCTS, MARKETS.
Böhler Thyssen Schweisstechnik GmbH
is a joint venture in which BÖHLER-UDDEHOLM
AG and KruppHoesch Stahl AG each own 50%.
The Welding Consumables Division operates
manufacturing facilities in Austria, Germany,
Belgium, Brazil and Mexico. Böhler Thyssen
Schweisstechnik GmbH has its own subsidiaries,
which are responsible for the sale of welding
consumables throughout the world.
The Company considers itself a universal
provider of welding consumables for sheathed
electrodes, solid wire and filler wire for electrical
arc welding, stick electrodes for gas welding,
welding consumables for repairs, and soldering
materials. Approximately two-thirds of
sales are generated by medium and high-alloy
welding consumables. The Group is market
leader for rust, acid and heat resistant products
in a number of West European and South
American countries. Products are used chiefly
in steel and apparatus construction, power station
and plant construction, automobile manufacture
and shipbuilding, pipeline construction,
and the petrochemical industry.
BUSINESS OVERVIEW 2001.
Key Segment Figures acc. to IAS in m€ 1999 2000 2001
Total sales 119.8 121.7 135.1
Intra-company sales 3.2 3.9 4.3
External sales 116.6 117.8 130.8
Earnings before interest and tax (EBIT) 2.0 6.6 10.6
Operating assets 84.9 94.0 97.6
Operating liabilities 19.1 18.2 17.8
CAPEX 5.4 7.2 3.1
Depreciation 4.6 4.4 4.9
Other non-cash income/expense 1.0 0.2 1.0
Employees 842 799 813
Welding Consumables
Division
In spite of a difficult operating environment,
the Welding Consumables Division recorded
higher sales and earnings for the reporting
year and further increased market share.
Extensive restructuring in the division over
past years also led to a substantial improvement
in the EBIT margin. The development of
business during the first half of 2001 was characterized
by satisfactory growth in volume
sales, which weakened slightly during the second
six months. Prices remained under increasing
pressure, however, and the higher cost of
pre-materials exerted additional pressure on
the gross margin.
The strong upward trend in oil prices over
recent years has stimulated activity in the offshore
and pipeline construction segments.
Many new projects are now in the implementation
stage, which has led to higher demand
for welding consumables. Substantial growth
in power plant construction, particularly during
the fourth quarter of 2001, also supported
an increase in the sale of welding consumables.
Sales in m€
119.8
1999 2000
EBIT in m€
2.0
121.7
1999 2000
Employees
842
6.6
799
1999 2000
135.1
2001
10.6
2001
813
2001
BÖHLER-UDDEHOLM Annual Report 2001 27