Annual Report 2001 - KSPG AG

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36 Management report on the Kolbenschmidt Pierburg Group The divisions Air Supply & Pumps Air Supply & Pumps is our division that develops, manufactures, and markets systems and components for use in the series production of autos. Air supply, emission reduction, fuel supply, and pumps are the subdivisions. As the parent of Air Supply & Pumps, Pierburg AG controls all shareholdings in the division’s companies. Changes to the business portfolio As of April 1, 2001, Pierburg AG founded together with Shanghai Automotive Industry Company Ltd. (SAIC) the joint venture Kolbenschmidt Pierburg Shanghai Nonferrous Components Co. Ltd. (KPSNC) in Shanghai. Pierburg AG’s stake amounts to 50 percent. The venture makes it possible for Air Supply & Pumps to access the strategically important Chinese automotive market. At the same time it is an excellent platform to further widen sales opportunities. The joint venture develops, manufactures and markets intake manifolds, cylinder heads, and steering gear components. Moreover, it aims at extending the range to complete firsttier oil and water pump assemblies. Air Supply & Pumps 2000 2001 €million €million Net sales 770.4 819.8 EBIT 16.8 24.8 EBT 7.2 12.3 Net income 7.3 14.1 Capital expenditures 75.4 80.4 Headcount at Dec. 31 4,109 4,010 As of December 31, 2001/January 1, 2002, AVL Holding GmbH in Graz, Austria, was merged into Pierburg Instruments GmbH (previously wholly owned by Pierburg AG) by capital increase. AVL now holds a majority stake in the joint venture and will take over management control. Pierburg Instruments GmbH’s stake in Pierburg Instruments Inc., Auburn Hills, USA, was completely sold to AVL Michigan Holding Inc., Plymouth, USA, as of January 1, 2001. In fiscal 2001 and at €819.8 million, sales by Air Supply & Pumps were €49.4 million above the previous year’s level of €770.4 million (up 6.4 percent), the main reason for the sales increases being the mounting wave of diesel vehicles in a high-volume, yet stalling Western European car market. Sales gains due to rising share of dieselengine passenger cars At Pierburg AG, sales amounted to €470.1 million in 2001. Hence, the previous year’s €465.6 million inched up 1 percent. Sales advances in solenoid valves, exhaust gas recirculating valves, electric throttle bodies, and electric auxiliary water pumps as well as oil and vacuum pumps outcompensated the budgeted declines in intake manifolds and intake manifold modules as well as electric fuel pumps. All the division’s companies managed to boost sales over the previous year. Carbureibar S.A., Spain, up 19.9 percent or €19.8 million, Pierburg Inc., USA, up 45.0 percent or €13.5 million and Pierburg S.a.r.l., France, up 12.0 percent or €11.8 million, generated better-than-average sales, whereas Pierburg S.p.A., Italy, up 0.1 percent or €0.2 million, gained only slightly. In the air supply unit, the sales increase by €36.7 million (7.9 percent) was mainly attributable to the throttle body, exhaust gas recirculating valve and solenoid valve product groups, these having benefited from the launch of new product families, the high proportion of diesel engines and re-tightened exhaust gas regulations. Intake module sales fell over the previous year, chiefly due to the receding shipments for a megaproject. Secondary air systems sales continued at the year-earlier level. Fuel pump assembly line at the Neuss plant
Assembly of the steplessly variable intake manifold on the BMW V8 at the Nettetal plant The divisions Air Supply & Pumps Pump sales climbed €12.7 million to €321.0 million (up 4.1 percent). The oil pump, water pump and vacuum pump groups had a good year. Fuel pump sales shrank as a consequence of a strategy of concentrating on sophisticated and profitable types of pump. Earnings up In fiscal 2001, earnings at Air Supply & Pumps rose. EBT was boosted by €5.1 million to €12.3 million, ROS climbed from 0.9 to 1.5 percent. In the year under review, Pierburg AG posted an EBT gain of €5.3 million to €9.0 million due to earnings improvement from restructuring measures at the Nettetal and Berlin locations as well as extensive product-related rationalization efforts. The OEMs’ ongoing price squeeze eroded earnings. Moreover, start-up losses for new products likewise took a toll on EBT. The return on sales was upped 1.9 percent (from 0.8 percent). The division’s non-German companies showed a mixed performance. Carbureibar S.A., Spain, had a good year, the company again improving EBT over the previous period, and hence largely contributing to the division’s earnings, despite a slightly poorer sales mix and several start-ups. Pierburg Inc., USA, managed to upgrade its performance over the prior year, basically due to strong sales gains while failing to break even because of heavy start-up costs for new projects and unbudgeted special freight charges. At Pierburg S.à.r.l., France, productivity advancements and climbing sales raised EBT. In all, EBT was well in the black. Restructuring expenditures from the takeover of pump operations at Magneti Marelli as well as declining sales from former businesses at Pierburg S.p.A., Italy, squeezed earnings to a degree only partly compensated by productivity enhancements. EBT was negative. Another improvement in financial indicators The financial strength of the Air Supply & Pumps division was continuously built up in 2001, the period’s gross cash flow reaching €83.0 million. The capital expenditures of €80.4 million incurred in 2001 were thus fully funded by the gross cash flow. In comparison to the year before, total assets crept down by an insignificant €0.3 million to €554.8 million. Accounting equity diminished by €9.4 million to €143.7 million, slimming the equity ratio from 27.6 percent at December 31, 2000, to 25.9 at the close of 2001. Prospects Despite the clouded climate in the automotive markets of Western Europe and North America, Pierburg AG and Air Supply & Pumps expect 2002 sales to top the previous year’s level. Momentum will be delivered by the numerous start-ups of the year 2001, for the first time having a full-period impact and hence leading to sharp sales rises, mainly for the intake manifold, throttle body, vacuum pump and water pump product groups. For 2002, earnings are generally expected to improve at Pierburg AG and Air Supply & Pumps due to the 2001 cost input and lower burdens from production start-ups. 39
Page 1 and 2: Kolbenschmidt Pierburg AG Rheinmeta
Page 3 and 4: Kolbenschmidt Pierburg at a glance
Page 5 and 6: Contents Agenda of the annual stock
Page 7 and 8: 6 Kolbenschmidt Pierburg AG Supervi
Page 9 and 10: 10 Kolbenschmidt Pierburg AG Letter
Page 11 and 12: 14 Management report on the Kolbens
Page 13 and 14: 18 Management report on the Kolbens
Page 15 and 16: Tool setting prior to machining the
Page 17 and 18: Coating unit for high-duty plain be
Page 19 and 20: Production line for car engine bear
Page 21: Final assembly of the variable inta
Page 25 and 26: Alfinizing of diesel piston ring mo
Page 27 and 28: 46 Lagebericht und Konzernlageberic
Page 29 and 30: Testing an engine block for leakage
Page 31 and 32: The PLU 401/121 for continuous fuel
Page 33 and 34: Ecotec test rig at the Neckarsulm p
Page 35 and 36: 62 Kolbenschmidt Pierburg AG Balanc
Page 37 and 38: Consolidated financial statements 2
Page 39 and 40: 70 Consolidated financial statement
Page 55 and 56: 102 Consolidated financial statemen
Page 61: 114 Consolidated financial statemen

Annual Report 2001 - KSPG AG

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