On March 31, 2015, German filtration expert MANN+HUMMEL announced its 2014 financial report. In 2014, MANN+HUMMEL's sales increased by 4.5% year-on-year to 120 million euros, and sales reached 2.8 billion euros (2013 sales: 2.68 billion euros). If excluding the impact of exchange rates, MANN+HUMMEL's sales rose by 8.9%. The EBIT was 5% after deducting non-operating expenses (2013 EBITDA: 5.6%). Through M&A, MANN+HUMMEL increased its global workforce by 769 in 2014 and currently reaches 16,000. The United States Independent Market Research Institute (Freedonia), after 2012, once again affirmed MANN+HUMMEL's leading position in the global filtration industry in 2014. Regarding the overall performance of the past year, Mr. Alfred Weber, president and CEO of MANN+HUMMEL, stated that the development of MANN+HUMMEL’s core business is generally satisfactory. Although the profit was affected negatively by special factors, the overall performance was sound. Thanks to 13,000 employees from more than 60 locations around the world for their outstanding contributions to MANN+HUMMEL's success. When MANN+HUMMEL submitted its first-half results in September 2014, it had already estimated that it would be slightly weaker in the second half of the year. In this regard, Mr. Frank B. Jehle, deputy chief executive officer and chief financial officer of MANN+HUMMEL, in the performance report, clearly pointed out the main negative factors affecting the company's profits: the weakness of the South American market, the increase in expenses arising from the acquisition of Purolator and the exchange rate Impact. The negative impact of the economic decline in South America is unexpected. In Brazil, the automotive business as one of MANN+HUMMEL's core businesses fell by 30%. One of the reasons for this is the additional expenditure generated by the acquisition of Purolator. China continues to grow as the world’s largest auto market In recent years, the growth of the global economy and the automotive market has been attributed to the growth in the demand of the emerging markets, especially China. From the perspective of per capita car ownership, the auto market will continue to grow. In developed countries, there are about 500 cars per 1,000 inhabitants, compared with 200 in Russia and Brazil, 50 in China, and even lower in India. MANN+HUMMEL's development in Asia depends mainly on the Chinese market. In China, MANN+HUMMEL's revenue mainly comes from the strong demand in the automotive market and the strong network layout of China's five major production bases. American car market The US market successfully recovered from the 2009 crisis, accounting for nearly 20% of MANN+HUMMEL's sales, and has further developed in the past few months. "We benefit from the economic recovery in the United States," Jehle said. "Unfortunately, the situation in South America is exactly the opposite of that in the United States. Especially in Brazil, the performance has fallen significantly." Automotive demand accelerates transfer In Western Europe, the market performance affected by the European debt crisis is still far below the pre-crisis level. However, from the perspective of the registration of new cars, the overall performance of these markets is relatively stable. According to the forecast of the German Automobile Industry Association (VDA), the share of the Western European market in the next few years will drop to around 15%. Therefore, there will be a clear shift in global market demand. According to the German Automobile Industry Association, EU countries such as Portugal, Spain and the United Kingdom have all experienced strong growth in the number of new car registrations. The economic recovery in these regions also benefits the MANN+HUMMEL Group. “Our branches in these regions clearly felt the increase in demand. We rationalized the production of other factories outside of Germany and the sales were rising all the way. Especially in Turkey and Thailand, thanks to the air filter and the In terms of successful gas manifold production, sales have increased significantly,†explains Jehle. Non-automotive sector growth MANN+HUMMEL acquired or acquired two non-automobile companies in 2014. The company will continue to implement its business growth strategy and increase its investment in non-automotive areas. Vokes Air, located in Svenljunga, Sweden, is a leading supplier of indoor air purification and HVAC segmentation. These market segments account for nearly 15% of the global filtration market and maintain a remarkable growth rate. In May 2014, MANN+HUMMEL acquired a 50% stake in MICRODYN-NADIR, an expert in water filtration, and strengthened the company's water filtration business since 2010. The company's headquarters in Wiesbaden, Germany, is dedicated to the production and sale of flat membranes and is a global leader in the fields of microfiltration membranes, ultrafiltration membranes, nanofiltration membranes and membrane modules. MANN+HUMMEL acquired 100% of Maynard from February 2015. The water filtration business of Minard's subsidiaries in Brazil, Singapore, China, the United States and Germany will be managed by the company’s headquarters. Compared with 2013, global industrial output achieved a certain growth in 2014, and the overall growth rate of emerging countries and developing countries was also in line with 2013. However, industrial production in Brazil and other South American countries fell into losses. “Our business in Brazil has clearly declined. Overall, our industrial filtration business still performed well in 2014,†said Manfred Wolf, president and general manager of automotive and industrial filtration business at MANN+HUMMEL. "The current industrial filtration business accounts for 12% of the group's total sales." According to the forecast of the German Machinery and Equipment Manufacturers Confederation (VDMA), in 2015, investment activities in the industrial and machinery manufacturing sector will increase, and related businesses will increase by 5%. "We agree with this view," Wolf said. “We believe that our sales and revenue in the industrial filtration business will further increase in 2015.†High-speed Mask Production Line
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