Ludwigsburg, Germany (PRWEB) April 01, 2015
Alfred Weber, President and CEO of MANN+HUMMEL, describes the company’s general result for the year as “solid”. “Our core business performed entirely satisfactorily. In spite of some negative exceptional factors affecting earnings, all round group overall performance was solid.” Weber thanked the workforce, which presently stands at almost 16,000 workers at much more than 60 areas worldwide, for their outstanding commitment and their contribution to the company’s good results.

MANN+HUMMEL had currently indicated a weaker outlook for the second half of the year when posting its Semi-Annual final results in September 2014. In his presentation of the Annual Report, Frank B. Jehle, Deputy CEO and CFO of the Ludwigsburg-based family-owned firm, addressed the elements that had the strongest damaging influence on earnings. “Earnings had been impacted by 3 independent elements – the industry downturn in South America, non-recurring expenses from the integration of the US aftermarket enterprise of the Purolator brand, and exchange rate effects.”

The effects of the weak South American economy had been a lot more severe than expected. In Brazil, Automotive Original Gear, one of the company’s core organization segments, saw a decline of up to 30 percent. The extraordinary expenditures arising from the acquisition of Purolator had been, even so, “factored in” according to Jehle.

China is the most significant automotive industry and continues to grow
In current years, international financial development and development in automotive markets has been largely driven by emerging markets, especially China. Searching at the number of autos per capita, growth is most likely to continue in the medium term. The number of passenger vehicles per 1,000 inhabitants is around 500 in established industrial nations,although in Russia and Brazil the figure is about 200, in China it is 50 and in India it is even lower. China is the driving force behind MANN+HUMMEL operations in Asia. Right here, the firm is reaping the benefits of sturdy demand for automobiles and from its 5 highly networked production facilities in China.

American automotive market place 
The US market staged a very good recovery following the 2009 crisis, accounting for just beneath 20 percent of group sales and gaining further momentum in current months. “We’ve managed to advantage from the recovery,” explains Jehle. “The image is quite different in South America, where the trend is downward, specially in Brazil.”

Increasing shift in demand for automobiles
In Western Europe, the markets most affected by the crisis are nonetheless well under pre-crisis levels. Even so, new automobile registrations indicate that conditions are stabilizing. Nevertheless, estimates from the German Automotive Sector Association (VDA) indicate that the Western European share of the global marketplace will fall to around 15 percent within a couple of years. A significant shift in international demand is as a result taking spot.

According to the VDA Konjunkturbarometer (VDA Financial Barometer), EU nations such as Portugal, Spain and the UK are reporting robust development in new automobile registrations. MANN+HUMMEL is also benefiting from the recovery of these economies. “It has led to noticeably enhanced demand for our subsidiaries. Capacity at our European plants outdoors of Germany is nicely utilized and sales are on the enhance. The plants in Turkey and in Thailand in certain have seen a considerable increase in sales thanks to productive production startups for air filters and intake manifolds,” explains Jehle.

Growth in the non-automotive sector
In 2014, MANN+HUMMEL purchased a organization in the non-automotive sector and acquired a stake in another. MANN+HUMMEL is for that reason continuing to pursue its growth strategy, which includes rising its presence in filtration markets outdoors of the automotive business.

Vokes Air, based in Svenljunga, Sweden is a leading provider of filtration applications for indoor air purification and the HVAC segment (Heating, Ventilation, Air Conditioning) segment. These segments have a share of around 15 % of the international filtration market and offer you eye-catching development prices.

In May possibly 2014, MANN+HUMMEL expanded its water filtration company with the acquisition of a 50 percent stake in water filtration specialist MICRODYN-NADIR, soon after currently having entered the water filtration market in 2010. Wiesbaden-primarily based MICRODYN-NADIR focuses on the production and distribution of flat sheet membranes and is a worldwide supplier of membranes and modules for micro-, ultra- and nanofiltration. MANN+HUMMEL assumed complete ownership of the firm in February of this year. The water company of the filtration specialist, which has subsidiaries in Brazil, Singapore, China, USA and Germany, will be managed centrally from Wiesbaden.

Global industrial output improved in 2014 compared with the earlier year. In emerging and establishing economies, the rate of growth from the previous year was maintained. Nevertheless, industrial output in Brazil and in other South American nations fell. “Our business in Brazil has suffered greatly. Nevertheless, 2014 was a excellent year all round for the Industrial Filtration Company Unit,” says Manfred Wolf, President & General Manager Automotive + Industrial Enterprise. “It accounted for roughly 12 % of group sales.”

The German Engineering Association (VDMA) expects investment activity in industrial and mechanical engineering to improve in 2015, and is forecasting development of 5 percent. “We share this view,” says Wolf. “We’re expecting continued growth in sales and earnings in Industrial Filtration for 2015.“

Over 700 new workers
700 new staff joined MANN+HUMMEL as a result of acquisitions and the expansion of our business in China. The total workforce now stands at 16,000, compared with 15,231 in 2013.

Focus on filtration 
MANN+HUMMEL has embarked on an ambitious growth approach to address worldwide value and competitive pressure. “Innovations and a focus on filtration are essential components of our Technique 2022 ,” explains Weber. “Continued growth in the future will be driven largely by acquisitions.” Although the CEO did not give precise particulars, he made it clear that “the subsequent acquisition will be a filtration organization”. Filtration will be the important core of the brand for the now 74-year old Ludwigsburg filter plant.

Market leadership confirmed
The concentrate on filtration is paying off for the loved ones-owned business. Getting previously done so in 2012, independent US industry study institute Freedonia once once again confirmed that MANN+HUMMEL is the marketplace leader in filtration in the summer time of 2014. The institute sees the filtration specialists as quantity 1 in the worldwide marketplace for filtration applications. Freedonia cites China and India as strong drivers of growth. MANN+HUMMEL is effectively positioned in these countries.

Outlook
“The building of our new technology center in Ludwigsburg represents an critical commitment to Germany as a company place. Nevertheless, it is equally crucial and appropriate for us to continue with our system of internationalization,” says Alfred Weber, describing the company’s plans for development. The Ludwigsburg filter plant has evolved into a global player, serving its consumers from more than 60 locations worldwide. “We want to be wherever our consumer require our products,” says Weber, citing developments in the automotive industry.

According to the German Automotive Business Association (VDA), German producers created more units abroad than in Germany for the 1st time ever in 2010. Domestic plants currently generate five.5 million passenger and light industrial cars annually, even though production figures at international areas are already in excess of 9 million.

MANN+HUMMEL intends to continue pursuing its growth strategy in 2015. “Our focus is on sustainable development. This is not an finish in itself, but an crucial requirement if we are to maintain our position as innovation and industry leader in the future,” says the CEO. “The several awards that we received from customers in all sectors in 2014 confirm to us that we have selected the proper strategy. We have clearly succeeded in consolidating and communicating our competitive benefits in terms of top quality, service, and innovation.”





