Annual Report 2001 - KSPG AG

Final assembly of the variable
intake manifold on the GM V6
at the Nettetal plant
Prospects
At the start of 2002, production and
car sales were somewhat down in the
global automotive industry. In the
United States and following the financial
incentives of the final quarter of
2001, fewer vehicles were sold than a
year ago. In Western Europe, the first
two months of the current year failed
to match the year-earlier production
and sales figures.
There is still vast uncertainty regarding
what lies ahead in 2002. So far, the
markets have not collapsed as feared.
In all, we expect production figures in
2002 to show a worldwide decline,
most steeply probably in the United
States, whereas Europe and, especially,
Germany will only suffer slight losses.
As to the remaining markets important
to Kolbenschmidt Pierburg such as
Brazil and China, we expect 2002 to
show growth.
In terms of units sold, the heavy-duty
vehicles have suffered much more
than the light-duty. Among the lightduty,
it is the cars that are least affected
by the shrinkage.
Kolbenschmidt Pierburg managed to
contain its sales decrease in the first
two months of 2002 to less than 1 percent,
this being solely due to the deconsolidation
of the MotorEngineering
division, which this year is no longer
providing the Group with sales revenues.
Despite the further contraction
in the United States, the OEM markets
of Air Supply & Pumps, Pistons, Plain
Bearings, and Aluminum Technology
all showed marginal sales rises.
On the basis of orders and products
already placed or scheduled by our
customers for the months ahead, we
expect sales for the first half of 2002
to approximate the magnitude of the
previous year. For the year as a whole,
we expect, and contrary to market
trends, to show a slight uptrend versus
the 2001 level thanks to gains through
soon-to-be-launched products.
Once again, Kolbenschmidt Pierburg
will achieve this sales growth in 2002
through extensive investments in R&D
and additions to tangible assets.
Nevertheless and in view of stalling
business, special attention will be
paid to the cost efficiency of such
investments in 2002.
Our top priority in 2002 is to maintain
and enhance our own organic profitability.
This is a target we have set
ourselves in particular in view of the
lackluster market expected in 2002.
And this is why restructuring programs,
substantial productivity enhancements
and process improvements, in particular
with new-product start-ups, will
have to largely compensate for
increasing costs and heavier price
pressure. For 2002 and assuming
only slight increases in sales, the
Kolbenschmidt Pierburg Group is
targeting earnings of the magnitude
of the previous period.
Production figures
declining worldwide
in 2002
Same earnings
level envisaged
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