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Mahle International GmbH, Germany
Company profile
Mahle International GmbH, Germany Profile
Mahle International is primarily a manufacturer of automotive components. The company’s operations are organised into five business units (Filtration & Engine Peripherals, Engine Systems & Components, Thermal Management, Aftermarket and Industry) and seven additional profit centres that target more specific markets (Motorsports & Special Engines Engineering Services Small Engine Components, Mechatronics, Thermostats & Valves, Control Units and Front-end Modules). Its filtration activities span a number of these areas. The Filtration & Engine Peripherals business unit includes fuel, oil, air and cabin filters. The Industry segment has industrial filtration products including membrane technology for water treatment, while the Aftermarket business unit also includes filter products. Analysis
The Mahle Group recorded a 12.7% increase in sales for fiscal 2013 compared with the previous year as its revenues reached E6.9 billion. That figure, however, was boosted by nearly E1 billion from acquisitions, particularly the first-time consolidation of the former Behr Group. Organic sales growth was below expectations, while revenues were also adversely affected by negative exchange rate effects of E311.7 million. Mahle’s business units and profit centres experienced mixed fortunes. Its largest business unit, Engine Systems & Components, experienced a 5.5% decline in sales to E2.7 billion impacted by a range of factors including weakness in the European passenger car market and currency effects. The Filtration & Engine Peripherals business unit, in contrast, continued to develop successfully and recorded sales of E1.9 billion, up 1.1% on the 2012 figure. Adjusted for negative exchange rate effects of E107.8 million, the business unit achieved solid sales growth of 6.7%, benefiting from the increasing complexity of engine peripherals. Sales in Mahle’s Aftermarket business unit edged up 1.1% on the prior year to E795.8 million boosted by strong growth in its air conditioning servicing market, but fell 4.2% in its Industry group to E445.4 million impacted by poor sales in both Europe and the USA. The company’s new Thermal Management business unit generated sales of E747 million between October and December, thereby contributing 10.8% to group sales. Mahle’s gross profit for fiscal 2013 rose 7.7% on the 2012 comparator to reach E1.4 billion. The associated margin, however, fell from 21.3% to 20.3% impacted by depreciation and amortization costs of E25.7 million relating to the consolidation of the Behr Group, as well as significant restructuring expenses. Mahle’s income from ordinary activities rose 14.8% on the prior period to reach E306.5 million, while net income was 58.4% stronger at E235.6 million. Key Figures (E million) Mahle International GmbH
COMMENT
In a year of mixed performance, fiscal 2013 was marked for Mahle by its majority acquisition of the Behr Group. In boosting its share in the company from 36.85% to approximately 51%, Mahle took an important step in its future development. The acquisition resulted not only in a significant rise in its revenues (Mahle aims to achieve sales of around E10 billion in fiscal 2014 compared to E6.9 billion in fiscal 2013), but also in its number of employees and locations. The new, enlarged Mahle family now totals approximately 65 000 employees at more than 140 production locations in 28 countries. It has also established thermal management products as a central part of the company’s operations, with this area now established as a new business unit. The integration of the Behr Group will continue to be a key strategic aim in fiscal 2014. As part of these efforts, Mahle has started to establish joint production locations where products from several different business units can be manufactured as systems, modules or individual components. Various locations for this are being considered in Europe, North America and Asia. In addition to the Behr integration, Mahle is also pursuing a number of other structural changes. As the European automotive market is expected to remain sluggish in the medium-term, Mahle is pursuing additional restructuring measures in the region. n
Year ended 31.12 2013 2012 2011 2010 2009
Sales Of Which: Filtration & Engine Peripherals Aftermarket Industry
6941.3 6159.5 6002.2 5260.6 3864.0
Cost of Sales
5530.7
4849.6
4714.0
4087.1
n/a
Gross Margin
1410.6
1309.9
1288.2
1173.5
n/a
R&D Expenses
336.2
289.4
322.8
310.0
n/a
Income from Ordinary Activities
306.5
267.1
351.5
251.5
(165)
Net Income/(Loss)
235.6
148.6
231.1
176.6
(379.3)
1946.4 1925.5 1873 1676 1257 795.8 787.3 775 735 627 445.4 464.8 471 340 229
Contact Details
Chair (Supervisory Board): Dr Klaus Bleyer CEO and Chair (Management Board): Dr Heinz Junker Address: Pragstraße 26-46, D-70376 Stuttgart Tel: +49 711 501 0 Germany Web: www.mahle.com
October 2014
Filtration Industry Analyst
7
Mahle International GmbH, Germany Profile
Mahle International is primarily a manufacturer of automotive components. The company’s operations are organised into five business units (Filtration & Engine Peripherals, Engine Systems & Components, Thermal Management, Aftermarket and Industry) and seven additional profit centres that target more specific markets (Motorsports & Special Engines Engineering Services Small Engine Components, Mechatronics, Thermostats & Valves, Control Units and Front-end Modules). Its filtration activities span a number of these areas. The Filtration & Engine Peripherals business unit includes fuel, oil, air and cabin filters. The Industry segment has industrial filtration products including membrane technology for water treatment, while the Aftermarket business unit also includes filter products. Analysis
The Mahle Group recorded a 12.7% increase in sales for fiscal 2013 compared with the previous year as its revenues reached E6.9 billion. That figure, however, was boosted by nearly E1 billion from acquisitions, particularly the first-time consolidation of the former Behr Group. Organic sales growth was below expectations, while revenues were also adversely affected by negative exchange rate effects of E311.7 million. Mahle’s business units and profit centres experienced mixed fortunes. Its largest business unit, Engine Systems & Components, experienced a 5.5% decline in sales to E2.7 billion impacted by a range of factors including weakness in the European passenger car market and currency effects. The Filtration & Engine Peripherals business unit, in contrast, continued to develop successfully and recorded sales of E1.9 billion, up 1.1% on the 2012 figure. Adjusted for negative exchange rate effects of E107.8 million, the business unit achieved solid sales growth of 6.7%, benefiting from the increasing complexity of engine peripherals. Sales in Mahle’s Aftermarket business unit edged up 1.1% on the prior year to E795.8 million boosted by strong growth in its air conditioning servicing market, but fell 4.2% in its Industry group to E445.4 million impacted by poor sales in both Europe and the USA. The company’s new Thermal Management business unit generated sales of E747 million between October and December, thereby contributing 10.8% to group sales. Mahle’s gross profit for fiscal 2013 rose 7.7% on the 2012 comparator to reach E1.4 billion. The associated margin, however, fell from 21.3% to 20.3% impacted by depreciation and amortization costs of E25.7 million relating to the consolidation of the Behr Group, as well as significant restructuring expenses. Mahle’s income from ordinary activities rose 14.8% on the prior period to reach E306.5 million, while net income was 58.4% stronger at E235.6 million. Key Figures (E million) Mahle International GmbH
COMMENT
In a year of mixed performance, fiscal 2013 was marked for Mahle by its majority acquisition of the Behr Group. In boosting its share in the company from 36.85% to approximately 51%, Mahle took an important step in its future development. The acquisition resulted not only in a significant rise in its revenues (Mahle aims to achieve sales of around E10 billion in fiscal 2014 compared to E6.9 billion in fiscal 2013), but also in its number of employees and locations. The new, enlarged Mahle family now totals approximately 65 000 employees at more than 140 production locations in 28 countries. It has also established thermal management products as a central part of the company’s operations, with this area now established as a new business unit. The integration of the Behr Group will continue to be a key strategic aim in fiscal 2014. As part of these efforts, Mahle has started to establish joint production locations where products from several different business units can be manufactured as systems, modules or individual components. Various locations for this are being considered in Europe, North America and Asia. In addition to the Behr integration, Mahle is also pursuing a number of other structural changes. As the European automotive market is expected to remain sluggish in the medium-term, Mahle is pursuing additional restructuring measures in the region. n
Year ended 31.12 2013 2012 2011 2010 2009
Sales Of Which: Filtration & Engine Peripherals Aftermarket Industry
6941.3 6159.5 6002.2 5260.6 3864.0
Cost of Sales
5530.7
4849.6
4714.0
4087.1
n/a
Gross Margin
1410.6
1309.9
1288.2
1173.5
n/a
R&D Expenses
336.2
289.4
322.8
310.0
n/a
Income from Ordinary Activities
306.5
267.1
351.5
251.5
(165)
Net Income/(Loss)
235.6
148.6
231.1
176.6
(379.3)
1946.4 1925.5 1873 1676 1257 795.8 787.3 775 735 627 445.4 464.8 471 340 229
Contact Details
Chair (Supervisory Board): Dr Klaus Bleyer CEO and Chair (Management Board): Dr Heinz Junker Address: Pragstraße 26-46, D-70376 Stuttgart Tel: +49 711 501 0 Germany Web: www.mahle.com
October 2014
Filtration Industry Analyst
7