Performance by Business Division


ENGINE SYSTEMS DIVISION

The Engine Systems Division includes the pre-existing Filter Division, now renamed Fluid Filters, and the newly-acquired Systèmes Moteurs S.A.S., now renamed Air Intake and Cooling.

The division’s key results and economic indicators for the year under consideration  (not comparable with previous years) are indicated in the following table:

KEY ECONOMIC DATA

(in millions of Euro) 2008 2009 2010 2011 Change.'11 vs '10
Sales revenues 497.5 414.5 465.1 611.5 31.5%
EBITDA 44.0 27.1 39.2 47.0 19.9%
Operating result 43.2 22.1 35.8 41.3 15.2%
Ebit 26.6 9.7 19.4 23.0 18.4%
Net result 16.6 5.0 12.1 13.8 13.9%

KEY FINANCIAL DATA

(in millions of Euro) 2008 2009 2010 2011 Change.'11 vs '10
Shareholders' equity 122.1 116.2 11.7 203.2 81.9%
Net financial
surplus (indebtedness)
(4.5) 30.3 2.3 3.7 59.7%

OTHER INDICATORS

  2008 2009 2010 2011 Change.'11 vs '10
Number of employees 3,516 3,400 3,170 4,136 30.5%

A breakdown of the two main sectors is provided below:

(in millions of Euro) FLUID FILTERS AIR INTAKE AND COOLING Interc.  elimin. TOTAL ENGINE SYSTEMS DIVISION
  Amount % Amount % Amount Amount %
Sales revenues 475.9 100.0 135.7 100.0 (0.1) 611.5 100.0
Operating result 32.3 6.8 9.0 6.7 - 41.3 6.8
EBIT 15.7 3.3 7.3 5.4 0.0 23.0 3.8
Result before taxes 14.0 2.9 6.8 5.0 0.0 20.8 3.4
Net result 9.2 1.9 4.6 3.4 0.0 13.8 2.2
Net financial surplus (indebtedness) 8.9   (5.2)   - 3.7  
Shareholders' equity 111.6   91.5   0.1 203.2  
Number of employees at December 31 2,949   1,187   - 4,136  

The performance posted in 2011 by the Engine Systems Division’s activities in the four main areas in which it operates is analysed in the table below:

(in millions of Euro) ENGINE SYSTEMS DIVISION EUROPE ENGINE SYSTEMS DIVISION NORTH AMERICA ENGINE SYSTEMS DIVISION SOUTH  AMERICA ENGINE SYSTEMS DIVISION ASIA Interc. elimin TOTAL ENGINE SYSTEMS DIVISION
  Amount % Amount % Amount % Amount % Amount Amount %
Sales revenues 412.5 100.0 65.2 100.0 123.0 100.0 14.9 100.0 (4.1) 611.5 100.0
Operating result 15.4 3.7 9.1 14.0 15.7 12.8 1,1 7.5 (0.0) 41.3 6.8
EBIT 0.3 0.1 8.1 12.4 13.6 11.0 1.1 7.4 (0.1) 23.0 3.8
Result before taxes 4.5 1.1 7.8 11.9 13.1 10.6 0.9 6.2 (5.5) 20.8 3.4
Net result 4.7 1.1 6.1 9.4 9.0 7.3 0.1 0.5 (6.1) 13.8 2.2
Net financial surplus (indebtedness) 4.1   (5.6)   2.4   2.8   0.0 3.7  
Shareholders' equity 196.7   24.7   32.3   13.4   (63.9) 203.2  
Number of employees at December 31 2,692   396   771   277   - 4,136  

The revenues of the division amounted to Euro 611.5 million, including the 135.7 million reported by Systèmes Moteurs S.A.S. during the last five months as part of the consolidation. On like-for-like basis, revenues were Euro 475.9 million, reflecting weak demand on the European independent aftermarket, whereas the original equipment and original equipment spares sectors grew on all key markets (+4.2% Europe, +5.8% Mercosur, +45.8% USA, +183.9% China, +22.2% India).

The profitability of the division rose in terms of absolute value after the acquisition, but its percentage on revenues fell as a result of dropping sales in the independent aftermarket (-4.1%), which is the most profitable market.

EBITDA and EBIT were affected by the costs incurred in connection with the reorganisation of the Welsh plant in Llantrisant (Euro 10.3 million).

As of December 31, 2011 the Division's shareholders' equity amounted to Euro 203.2 million and employees had increased from 3,170 units in the previous period to 4,136.

The Division's net financial position recorded a surplus of Euro 3.7 million at the end of the year.

 

SUSPENSION COMPONENTS AND PRECISION SPRINGS DIVISION

The table below illustrates the most significant figures and economic and financial indicators recorded by the Division during the year 2011 and the three previous years:

KEY ECONOMIC DATA

(in millions of Euro) 2008 2009 2010 2011 Change '11 vs '10
Sales revenues 521.9 368.0 461.6 547.7 18.6%
EBITDA 64.5 24.0 52.1 68.3 31.2%
Operating result 47.5 15.0 35.9 49.1 36.8%
Ebit 40.2 (0.1) 27.5 44.1 60.2%
Net result 18.7 (5.3) 13.7 20.8 52.2%

KEY FINANCIAL DATA

(in millions of Euro) 2008 2009 2010 2011 Change '11 vs '10
Shareholders' equity 134.1 120.4 139.1 137.2 -1.3%
Net financial
surplus  (indebtedness)
(89.8) (63.0) (46.9) (48.4) -3.1%

OTHER INDICATORS

  2008 2009 2010 2011 Change '11 vs '10
Number of employees 2,558 2,312 2,347 2,508 6.9%

A breakdown of the two main sectors is provided below:

(in millions of Euro) CAR AND PRECISION SPRINGS CAR AND PRECISION SPRINGS Interc. elimin.. TOTAL SUSPENSION COMPONENTS DIVISION
  Amount % Amount % Amount Amount %
Sales revenues 453.5 100.0 94.4 100.0 (0.2) 547.7 100.0
Operating result 28.5 6.3 20.6 21.8 - 49.1 9.0
EBIT 23.6 5.2 20.5 21.8 - 44.1 8.1
Result before taxes 28.4 6.3 20.5 21.7 (10.5) 38.4 3.8
Net result 17.8 3.9 13.5 14.3 (10.5) 20.8 3.8
Net financial surplus (indebtedness) (65.3)   16.9   - (48.4)  
Shareholders' equity 131.8   27.1   (21.7) 137.2  
Number of employees at December 31 2,178   330   - 2,508  

The performance posted in 2011 by the division’s activities in the two main areas in which it operates is analysed in the table below:

(in millions of Euro) SUSPENSION COMPONENTS DIVISION EUROPE SUSPENSION COMPONENTS DIVISION SOUTH AMERICA Other entities Interc. elimin.  TOTAL SUSPENSION COMPONENTS DIVISION
  Amount % Amount % Amount Amount Amount %
Sales revenues 414.9 100.0 122.6 100.0 12.0 (1.8) 547.7 100.0
Operating result 31.8 7.7 17.1 14.0 0.1 0.1 49.1 9.0
EBIT 28.7 6.9 15.3 12.5 0.2 (0.1) 44.1 8.1
Result before taxes 42.9 10.3 14.4 11.8 (0.2) (18.7)

38.4

7.0
Net result 29.8 7.2 10.20 8.3 (0.4) (18.8) 20.8 3.8
Net financial surplus (indebtedness) (40.5)   5.4   (13.3) - (48.4)  
Shareholders' equity 155.1   45.7   12.3 (75.9) 137.2  
Number of employees at December 31 1,765   569   174 - 2,508  

The Suspension Components Division recorded a very positive performance in 2011, as it fully benefited from growing volumes in both the car and industrial vehicles sectors during the first part of the year and compensated for the increased cost of steel by raising sales prices.

Revenues grew by 18.6% (+15.6% for light commercial vehicles and +35.7% for industrial vehicles), totalling Euro 547.7 million compared to 461.6 million in 2010.

Profitability improved at all levels compared to the previous year, thanks to expanded activities in the high-profit market of industrial vehicles, a reduction in fixed costs and sales price adjustments to offset increased raw material cost.

As of December 31, 2011, the Division recorded a net financial indebtedness of Euro 48.4 million, compared to the 46.9 million of the previous year and had 2,508 employees (2,347 at the end of December 2010).