Press release on the financial statement press conference of April 12, 2006
Automotive industry on record pace once again in 2005
The worldwide production of passenger cars and light commercial vehicles increased by 3% to 63 million units. The production figures for medium weight commercial vehicles and heavy trucks increased by 2.4% to 2.4 million units.
Sales rise to over EUR 4 billion - earning power improved
As a globally leading manufacturer of components and systems for combustion engines and engine peripherals, MAHLE Group increased its sales by almost 10% to EUR 4.12 billion, which significantly exceeds the industry average. The essential impetus for this growth was given by extensive development and production activities in the key regions of Asia and North and South America as well as the continuing high global demand for commercial vehicles and the proportional increase of diesel engines to almost 50% in the passenger car sector in Western Europe. On account of its technological leadership, MAHLE was able to gain further market share in both segments. In the total increase of EUR 364 million in sales volume in 2005, there was almost an even balance between organic growth and revenue from strategic acquisitions.
The overall financial requirements of the MAHLE Group were covered completely by the Group's own operating cash inflows and, in addition, an improvement was recorded in net liquidity.
The result from ordinary activities rose to EUR 274.7 million (previous year: 236.9); the earnings before interest and taxes (EBIT) to EUR 341 million (previous year: 255 million). The net income for the year amounted to EUR 159 million (previous year: EUR 131.1 million). The balance sheet total rose by EUR 453.7 mio. (17.6%) to EUR 3,026.7 mio. The ratio of fixed assets to current assets (including prepaid expenses) fell from 0.96 to 0.87. The equity ratio rose by 3.4 percentage points from 38.6% to 42%.
Investments in new production plant and processing equipment rose by 13% to EUR 288 million and therefore exceeded depreciation, which amounted to EUR 234 million. Compared with sales, this corresponds to an investment ratio of around 7%, which is significantly higher than the industry standard.
The number of people employed by the MAHLE Group increased in the course of the 2005 business year to 37,419 worldwide (as of Dec. 31, 2005). 8,973 were employed in Germany and 28,446 abroad. 1,799 employees became members of the worldwide MAHLE family as a result of the acquisition of new companies.
Outlook for 2006
For the current business year, MAHLE expects further increases in the production figures of automobile and engine manufacturers, supported primarily by the continuing economic dynamism in Asia. As a globally active Group, with development and production capacities in all key economic regions of the world, MAHLE is well-equipped not only to maintain its leading market position, but to gain additional market share worldwide in all product lines and profit centers. On this basis, MAHLE expects to achieve a further increase in Group sales for 2006.
The MAHLE Group is the globally leading manufacturer of components and systems for combustion engines and engine peripherals. With approx. 37,500 employees in more than 80 production locations, MAHLE's sales amounted to EUR 4.1 billion in 2005 which makes MAHLE figure among the 30 largest automotive suppliers worldwide.