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Mann+Hummel Group, Germany
COMPANY PROFILE
Mann+Hummel Group, Germany Profile
The Mann+Hummel Group is a global supplier to the automotive and mechanical engineering sectors. It supplies the original and aftermarket automotive industries with a range of products including air filter systems, intake manifold systems, liquid filter systems, cabin filters and cylinder head covers. Its product range for industrial filtration includes air, oil, fuel and diesel particulate filters for markets such as construction and agricultural machinery, ships and vacuum pumps. The company also produces filters, membranes and systems for a range of water treatment applications. Analysis
Mann+Hummel recorded a solid year in fiscal 2012 with increases in both sales and net income. Group sales rose 5.8% on the previous year to reach E2615.5 million, although the increase was reduced to 3.6% when adjusted for currency effects. The increase was essentially attributable to positive development in both its automotive Original Equipment Manufacturer (OEM) and aftermarket sectors. The former division accounted for 49.5% of Group revenues (E1295 million) and the latter 38.5% (E1007 million), with the remaining 12.0% (E314 million) coming from the Non-Automotive business unit. Geographically, Mann+Hummel’s American operations continued to record good growth, with revenues up 16.0% on the year earlier to E677.4 million and its share of group revenues increasing from 23.6% in 2011 to 25.9%. Sales in Asia were also up, increasing 11.3% on the year prior to reach E476.4 million and the share of overall revenues increasing from 17.3% to 18.2%. In contrast, sales in the company’s home market of Europe were down marginally, with a resultant decline in the contribution to group sales from 58.6% a year ago to 55.3% in the latest period. The cost-of-materials ratio (57.3%) decreased compared to the previous year by 0.6 percentage points, with the improvement attributed to rationalisation measures and product mix effects. In absolute terms the material costs rose by E59 million to E1498.2 million. Personnel costs rose in absolute terms by E46 million to E624.0 million due not only to an increase in the number of employees, but also to pay rises. The personnel cost ratio rose in comparison to the previous year by 0.7 percentage points to 23.9%. Earnings before interest and tax (EBIT) increased by E4 million to E146 million, while the profit margin on turnover decreased slightly from 5.7% to 5.6%. Mann+Hummel’s net income for the year was up 25.5% on the 2011 comparator at E95.6 million, with the figure benefiting in part from a reduced tax rate and higher earnings from securities. Key Figures (E million) Mann+Hummel Group 2012
COMMENT Mann+Hummel continued to grow in fiscal 2012 reflecting the Group’s recent strategic focus that has emphasised diversification and new product development. In terms of geography the company saw a slowdown in its home market of Europe, particularly in Germany where sales were down after a series of good years. Compensating for this fall, however, was good growth in American and Asian markets. Mann+Hummel reported that revenue growth in North America was especially strong, with the launch of new air filters, inlet filters and plastic products leading to a jump in sales of automotive original equipment of more than 40% for the second year running. This more than made up for weakening demand in South America. Business in Asia also continued to grow, although performance was mixed in different countries. Sales in India rose sharply compared to previous years due to the launch of inlet manifold products and motorcycle air filters, but declined in Korea and Japan. Revenues in China were also below expectations. Mann+Hummel plans to continue this development of new geographic markets in the coming years. This has been underlined by the company completing a takeover of Puralotor Filters LLC based in Fayetteville, North Carolina, USA, in March 2013. Mann+Hummel had run Puralotor as a joint venture for more than six years with Bosch. In addition to its investment in North America, Mann+Hummel has also signalled its intention to establish a stronger presence in Central and Eastern Europe and in Asia. ■
Year ended 31.12 2011 2010
2009
2008
Sales
2615.5
2473.3
2180.0
1671.7
1825.1
Material Costs
1498.2
1439.9
1223.0
898.1
982.9
624.0
578.1
535.9
494.3
483.2
232
219
224
100
143
Earnings before Interest and Taxes
145.7
141.6
149.2
23.0
64.9
Result from Ordinary Activities
127.4
115.2
126.4
4.5
48.5
95.6
76.2
94.2
(5.3)
31.1
14 575
14 338
13 201
11 787
12 403
Personnel Costs EBITDA
Net Income Number of Employees (Year end) Contact Details
Mann+Hummel Group Chair (Supervisory Board): President and CEO: Address:
July 2013
Thomas Fischer Alfred Weber Hindenburgstrasse 45 71638 Ludwigsburg, Germany
Tel: +49 7141 98-0 Web: www.mann-hummel.com
Filtration Industry Analyst
7
Mann+Hummel Group, Germany Profile
The Mann+Hummel Group is a global supplier to the automotive and mechanical engineering sectors. It supplies the original and aftermarket automotive industries with a range of products including air filter systems, intake manifold systems, liquid filter systems, cabin filters and cylinder head covers. Its product range for industrial filtration includes air, oil, fuel and diesel particulate filters for markets such as construction and agricultural machinery, ships and vacuum pumps. The company also produces filters, membranes and systems for a range of water treatment applications. Analysis
Mann+Hummel recorded a solid year in fiscal 2012 with increases in both sales and net income. Group sales rose 5.8% on the previous year to reach E2615.5 million, although the increase was reduced to 3.6% when adjusted for currency effects. The increase was essentially attributable to positive development in both its automotive Original Equipment Manufacturer (OEM) and aftermarket sectors. The former division accounted for 49.5% of Group revenues (E1295 million) and the latter 38.5% (E1007 million), with the remaining 12.0% (E314 million) coming from the Non-Automotive business unit. Geographically, Mann+Hummel’s American operations continued to record good growth, with revenues up 16.0% on the year earlier to E677.4 million and its share of group revenues increasing from 23.6% in 2011 to 25.9%. Sales in Asia were also up, increasing 11.3% on the year prior to reach E476.4 million and the share of overall revenues increasing from 17.3% to 18.2%. In contrast, sales in the company’s home market of Europe were down marginally, with a resultant decline in the contribution to group sales from 58.6% a year ago to 55.3% in the latest period. The cost-of-materials ratio (57.3%) decreased compared to the previous year by 0.6 percentage points, with the improvement attributed to rationalisation measures and product mix effects. In absolute terms the material costs rose by E59 million to E1498.2 million. Personnel costs rose in absolute terms by E46 million to E624.0 million due not only to an increase in the number of employees, but also to pay rises. The personnel cost ratio rose in comparison to the previous year by 0.7 percentage points to 23.9%. Earnings before interest and tax (EBIT) increased by E4 million to E146 million, while the profit margin on turnover decreased slightly from 5.7% to 5.6%. Mann+Hummel’s net income for the year was up 25.5% on the 2011 comparator at E95.6 million, with the figure benefiting in part from a reduced tax rate and higher earnings from securities. Key Figures (E million) Mann+Hummel Group 2012
COMMENT Mann+Hummel continued to grow in fiscal 2012 reflecting the Group’s recent strategic focus that has emphasised diversification and new product development. In terms of geography the company saw a slowdown in its home market of Europe, particularly in Germany where sales were down after a series of good years. Compensating for this fall, however, was good growth in American and Asian markets. Mann+Hummel reported that revenue growth in North America was especially strong, with the launch of new air filters, inlet filters and plastic products leading to a jump in sales of automotive original equipment of more than 40% for the second year running. This more than made up for weakening demand in South America. Business in Asia also continued to grow, although performance was mixed in different countries. Sales in India rose sharply compared to previous years due to the launch of inlet manifold products and motorcycle air filters, but declined in Korea and Japan. Revenues in China were also below expectations. Mann+Hummel plans to continue this development of new geographic markets in the coming years. This has been underlined by the company completing a takeover of Puralotor Filters LLC based in Fayetteville, North Carolina, USA, in March 2013. Mann+Hummel had run Puralotor as a joint venture for more than six years with Bosch. In addition to its investment in North America, Mann+Hummel has also signalled its intention to establish a stronger presence in Central and Eastern Europe and in Asia. ■
Year ended 31.12 2011 2010
2009
2008
Sales
2615.5
2473.3
2180.0
1671.7
1825.1
Material Costs
1498.2
1439.9
1223.0
898.1
982.9
624.0
578.1
535.9
494.3
483.2
232
219
224
100
143
Earnings before Interest and Taxes
145.7
141.6
149.2
23.0
64.9
Result from Ordinary Activities
127.4
115.2
126.4
4.5
48.5
95.6
76.2
94.2
(5.3)
31.1
14 575
14 338
13 201
11 787
12 403
Personnel Costs EBITDA
Net Income Number of Employees (Year end) Contact Details
Mann+Hummel Group Chair (Supervisory Board): President and CEO: Address:
July 2013
Thomas Fischer Alfred Weber Hindenburgstrasse 45 71638 Ludwigsburg, Germany
Tel: +49 7141 98-0 Web: www.mann-hummel.com
Filtration Industry Analyst
7