FRANKFURT, Germany – Sales at the Ludwigsburg-based MANN+HUMMEL Group increased by 74 million euros (+ 5.6 percent) to 1.39 billion euros in the first half of 2014 (previous year: 1.32 billion euros for the same period). When adjusted for exchange rate effects, the increase in sales amounts to 8.3 percent.
“Compared to the previous year, our sales growth has accelerated. However, this performance lags behind our ambitious objectives,” said Manfred Wolf, president and general manager of MANN+HUMMEL.
Wolf refers to the continuing competitive pressure and conflicts in the Middle East and the Ukraine. The expected sanctions against Russia have a negative impact on the economies of almost all EU countries. The drag on the global economy in the second half of the year should not be overlooked and the forecast for the year as a whole is for rather sluggish growth.
Mixed performance in markets
“The U.S. automotive market has gained momentum in recent months and we can benefit from that,” Wolf said. “The picture is very different in South America, where a downward trend can be seen in Argentina and Brazil.”
China is the main driver in the Asian markets. Here, MANN+HUMMEL is benefitting disproportionately from strong demand for cars and from its five, highly networked production facilities in China.
In the EU, according to the VDA Konjunkturbarometer [VDA Economic Barometer], countries most affected by the crisis – such as Portugal, Spain and Greece – are reporting particularly strong growth in new car registrations, reaching well into double figures. MANN+HUMMEL also is benefitting from the recovery of these economies. “It has led to noticeably improved demand for our subsidiaries. The erosion of sales in these countries has finally come to a halt,” Wolf said.
Price and competitive pressure
MANN+HUMMEL says it has embarked on an ambitious growth strategy to address global price and competitive pressure. “Innovations and a focus on filtration are important elements of our Strategy 2022,” explains Wolf. “And we have made good progress in both areas.” In February 2014, the MANN+HUMMEL Group acquired Vokes Air. Vokes Air, based in Svenljunga, Sweden, is a leading provider of filtration applications for ambient and process air. The megatrend in air purification is a driving force in this segment, which is becoming increasingly important in medical and industrial applications (for example, to meet clean room requirements). Since the acquisition, the company has been trading as MANN+HUMMEL VOKES AIR.
