Annual Report 2001 - KSPG AG

More documents

Recommendations

Info

56 Management report on the Kolbenschmidt Pierburg Group The divisions Motor Service The Motor Service division subsumes the Kolbenschmidt Pierburg Group’s worldwide aftermarket activities for engine repair shops and the workshop trade. With economic effect as of January 1, 2001, the Irish company Vehicle Spares Ltd. was sold to an Irish competitor due to poor market presence combined with faltering sales and repeated losses. This investor still represents the KS brand in Ireland. Sales slightly widened In fiscal 2001, the Motor Service division generated sales of €151.3 million (up from €149.0 million). The declining sales at the subsidiaries were outcompensated by rising sales at the parent company MSI Motor Service International GmbH. Despite the loss of Irish business, sales were elevated by more than €2 million over the previous year. Motor Service 2000 2001 €million €million Net sales 149.0 151.3 EBIT 13.4 16.8 EBT 10.4 13.4 Net income 7.9 7.9 Capital expenditures 0.8 1.0 Headcount at Dec. 31 396 381 All the traditional product groups posted, in some cases even steep, growth rates over fiscal 2000. Sales advanced especially in the regions of Eastern Europe, the Near/Middle East, Africa, Central America, and the Far East. Also generating momentum were improved customer service, customer loyalty programs and more customer staff training courses. Earnings well up With an EBT of €13.4 million, the previous year’s earnings of €10.4 million were again clearly raised. ROS thus amounted to 8.9 percent following the year-earlier 7.0 percent. Apart from the added sales, the higher earnings at the parent company MSI Motor Service International GmbH were also ascribable to better profit contributions compared with one year before. Moreover, the logistics, purchase and sales units were streamlined and thus rendered more efficient. Despite much higher sales, headcount growth lagged behind. The extra work was handled through overtime. The German subsidiary MTS Motorenteile-Service GmbH managed to slash its 2001 loss compared with 2000. Due to the still difficult market environment because of higher competitive pressure by OEMs, the company failed to break even. As part of a costs reengineering program, the foundation for a leaner organization was laid. All the logistic processes are now handled at a single location. Checking pistons prior to dispatch at the Neckarsulm plant
Ecotec test rig at the Neckarsulm plant The divisions Motor Service The French KS Motorac S.A. also implemented a restructuring program in fiscal 2001. The related expenses squeezed earnings below the previous year’s level. Besides reviewing customer structures and product ranges, the program mainly comprised the concentration of warehousing functions at Lyon. The warehouse in Paris was closed by mid-year; apart from marketing, which is still handled in Paris, all the other corporate processes are carried out from the Lyon location. The British KS Winston Ltd. managed to whittle down its loss over the previous year. As of mid-2001, new management was appointed in order to achieve the company’s turnaround in the year 2002. The second half of 2001 was characterized by restructuring measures as, for instance, closing two of the warehousing locations and optimizing logistics processes. In 2001, the environment for the Turkish KS Istanbul A.S. company was clouded by the plunging Turkish lira and the related national economic crisis. The loss in 2001 was mainly caused by the necessity of revaluing hard-currency liabilities. The Czech distribution company KS Motor Servis CZ s r.o. generated a slightly positive EBT. Due to plunging sales because of the devaluation of the Brazilian currency over the US dollar and the collapse of the Argentine market in 2001, KS Produtos Automotivos S.A. showed a slump in earnings while not, however, slipping into the red. At €1.0 million (0.7 percent of sales), capital expenditures in the Motor Service division in 2001 were slightly above the previous year’s €0.8 million (0.5 percent of sales), absorbing only a minor portion of the cash flow of €9.6 million. With equity of €18.2 million and a related equity ratio of 16.5 percent in 2001 (down from 18.0 percent), the division has sufficient funds for future growth. 2002 at a high level Fiscal 2002 is expected to result worldwide for MSI and all of its subsidiaries in a continuation of high-volume business combined with sustained profitability. In 2002, an important goal will be to ensure groupwide product availability, implement customer loyalty programs while simultaneously securing long-term supply sources. The core product lineup will be augmented by new production runs, especially of the plain bearings and pistons, as well as a program of items for “every aspect of the engine.” 59
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 and 22: Final assembly of the variable inta
Page 23 and 24: Assembly of the steplessly variable
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: The PLU 401/121 for continuous fuel
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

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?