Half year Press Conference 2011
Stuttgart, September 5, 2011 – In the first half of 2011, sales of the MAHLE Group increase by 18.9% in comparison with the previous year.
Development of the global economy
The leading economic research institutes anticipate that global economic growth will continue at a weakened pace in the next six months. Forecasts still indicate that the economic situation in the automotive industry will stabilize at its current high level. The development of raw material prices, the debt crisis in the United States and some countries in the euro zone, the inflation trend, and the still uncertain recovery in Japan are potential obstacles to growth.
With development prospects for the global economy still positive in July 2011, CSM forecasts a production figure of 75.9 million units (+3.8%) for passenger cars and light commercial vehicles (vehicles < 6 tonnes) and 3.42 million vehicles (+1.5%) for commercial vehicles.
Business development in 2011
The MAHLE Group's sales for the period from January to June 2011 amounted to EUR 2,973.4 million. This figure was EUR 472 million (+18.9%) more than the figure for the same period of 2010. The organic change in sales adjusted for exchange rate effects and first consolidations amounted to EUR 387.1 million (+15.5%).
The growth in sales is expected to be considerably lower in the second half of 2011; nevertheless, we still expect the economic situation in the global automotive industry to remain generally stable and therefore anticipate total annual sales of around EUR 5.8 billion. This would correspond to sales growth of around 11 percent in comparison with 2010.
In the first half-year, profit was primarily impaired by the significant production losses and damage costs incurred in Japan, as well as by rising material costs.
As for the number of employees per reference date (06/30/2011), a year-on-year increase from 44,799 to 49,103 was achieved. The number of people employed in Germany rose from 8,440 to 9,181, including the 840 employees who joined the MAHLE Group as a result of the full consolidation of MAHLE Behr Industry GmbH & Co. KG.
Development of the MAHLE Group
Holding in Behr increased: MAHLE has already increased its share from 19.9 to 36.85 percent in January 2011 as part of the planned acquisition of a majority share in the Behr Group. As in the first stage, the second step was completed by way of a unilateral capital increase, in order to further strengthen the financing and balance sheet structure of the Behr Group. This means that MAHLE is precisely on schedule with the share agreement concluded in 2010 and is expected to increase its share in the Behr Group to more than 50 percent on January 1, 2013, thus allowing full consolidation into the MAHLE Group.
With a complementary product range, the integration of Behr allows the MAHLE Group to further expand and improve its market position. This applies to systems environments for modern combustion engines, alternative power train technologies, and complete thermal management for vehicles. The first joint fair presence at the Shanghai Auto Show in April this year provided impressive proof of the operations already coordinated. Preparations are also being made for joint fair presences at the upcoming IAA in Frankfurt and at the Tokyo Motor Show in November.
In the already integrated Industry business unit, significant synergy effects are already being realized, new products are being developed jointly, and joint market cultivation activities are being organized.
Natural disaster in Japan: MAHLE employs more than 2,000 people in Japan at six production plants and two development centers. Fortunately, neither MAHLE employees nor their family members were injured during the earthquake and tsunamis in March. Nevertheless, considerable damage was caused to buildings and production facilities at some plants. Our Hirata plant is only around 40 kilometers from the Fukushima-Daiichi nuclear power plant and was completely evacuated for around 14 days. The other plants were made ready for production again in a relatively short time frame, following prompt temporary repairs, which meant that MAHLE did not cause its customers to suffer any production losses. Our teams not only promptly created action plans for repairing the production plant and buildings but also drew up assistance plans for employees experiencing problems with their food and energy supply.
MAHLE also supported the Japanese Red Cross with almost EUR 600,000 via direct company donations and voluntary employee donations from all over the world in order to assist with the necessary reconstruction measures.