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).