The Knorr-Bremse Group reported 14 per cent higher sales during 2011 at 4.24 billion EUR from the previous year’s 3.71 billion EUR. The group again benefited during the year from its strong global position in the rail vehicle systems and commercial vehicles sectors. At 2.19 billion EUR in sales, the Rail Vehicle Systems division contributed 51 per cent of the group’s overall revenues; and the Commercial Vehicles division produced the remaining 49 per cent at 2.07 billion EUR.
The Commercial Vehicles division benefited in particular from the sustained rejuvenation of the commercial vehicles market in Europe and North America. The founding of a joint venture for the manufacture of components for commercial braking systems and the power train in partnership with China’s CAFF Automotive Braking & Steering Systems helped pave the way for a significant expansion of China-based activities in the commercial vehicle segment.
Knorr-Bremse’s North American subsidiary Bendix added object recognition and data management for assist systems to its competencies through the acquisition of the Iteris company. The launch of serial delivery of anti-lock braking systems for agricultural vehicles during this reporting year also helped Knorr-Bremse make its entry into a new business area.
In 2011, the Commercial Vehicle Systems division was voted the “Best Brand in the Commercial Vehicle Sector” in the brakes category for the sixth time running. The division was also singled out for a VDA Logistik Award based on its efficient production and logistics processes.
Incoming orders within the group rose slightly from the prior year based on rising demand in both divisions in the North American region to 4.07 billion EUR from 4.04 billion EUR a year ago. Net profits totalled 329 million EUR (previous year: 239 million EUR), corresponding to a ROI of 7.8 per cent (PY: 6.4 per cent). The growth reflects both improved economy of scale and in particular improved efficiency in workflow and process optimization.
The consistent pursuit of the Knorr-Bremse philosophy of development and on-site production of product families for its customers, including in the emergent BRIC States, played a decisive role in the group’s success. It also means that a large share of the workforce is located in low-wage countries, across all departments.
The Group workforce grew by 11.1 per cent for the reporting year to 20,050 employees from 18,053 the previous year. The growth reflected the strong business results, especially in North America and Asia, as well as the first-time consolidation of new businesses. At the close of 2011, 52 per cent of employees across the group were employed in Europe, a further 23 per cent in America and another 25 per cent in Asia/Australia. The year-end head count showed 3,848 employees at Knorr-Bremse’s five German facilities in Munich, Aldersbach, Berlin, Dresden and Schwieberdingen, 19 per cent of the overall group workforce (PY: 3,431). An additional 3,184 employees, or 16 per cent of the total group workforce, were engaged in R&D and project planning during 2011.
Sales for the subsidiaries in the Asia-Pacific region grew slightly in 2011 by four per cent to 1.08 billion EUR. The Rail Vehicle division solidified its strong sales growth from recent years, not only maintaining those high levels but improving them by a moderate 2 per cent.
On the heels of the large-scale projects in China in recent years, Knorr-Bremse strengthened its market position in Asia by expanding its business with air-conditioning systems, as well as orders to equip local public transit trains and the expansion of its service network. The Asian Commercial Vehicle division also saw positive development, raising revenues by 14 per cent.
Outlook for 2012
The Group is forecasting moderate growth for 2012. In Europe the Group is anticipating unchanged market volume year-on-year for rail vehicles for passenger, freight and commercial hauling. A slight drop is expected on the European commercial vehicle market. In North America the Group is counting on further moderate recovery of the rail-based freight market and growth in commercial vehicle production. Mixed trends are anticipated for South America. The market for rail freight vehicles seems poised to improve slightly, while a drop in passenger rail traffic is expected.
The Knorr-Bremse Group reported 14 per cent higher sales during 2011 at 4.24 billion EUR from the previous year’s 3.71 billion EUR. The group again benefited during the year from its strong global position in the rail vehicle systems and commercial vehicles sectors. At 2.19 billion EUR in sales, the Rail Vehicle Systems division contributed 51 per cent of the group’s overall revenues; and the Commercial Vehicles division produced the remaining 49 per cent at 2.07 billion EUR.
The Commercial Vehicles division benefited in particular from the sustained rejuvenation of the commercial vehicles market in Europe and North America. The founding of a joint venture for the manufacture of components for commercial braking systems and the power train in partnership with China’s CAFF Automotive Braking & Steering Systems helped pave the way for a significant expansion of China-based activities in the commercial vehicle segment.
Knorr-Bremse’s North American subsidiary Bendix added object recognition and data management for assist systems to its competencies through the acquisition of the Iteris company. The launch of serial delivery of anti-lock braking systems for agricultural vehicles during this reporting year also helped Knorr-Bremse make its entry into a new business area.
In 2011, the Commercial Vehicle Systems division was voted the “Best Brand in the Commercial Vehicle Sector” in the brakes category for the sixth time running. The division was also singled out for a VDA Logistik Award based on its efficient production and logistics processes.
Incoming orders within the group rose slightly from the prior year based on rising demand in both divisions in the North American region to 4.07 billion EUR from 4.04 billion EUR a year ago. Net profits totalled 329 million EUR (previous year: 239 million EUR), corresponding to a ROI of 7.8 per cent (PY: 6.4 per cent). The growth reflects both improved economy of scale and in particular improved efficiency in workflow and process optimization.
The consistent pursuit of the Knorr-Bremse philosophy of development and on-site production of product families for its customers, including in the emergent BRIC States, played a decisive role in the group’s success. It also means that a large share of the workforce is located in low-wage countries, across all departments.
The Group workforce grew by 11.1 per cent for the reporting year to 20,050 employees from 18,053 the previous year. The growth reflected the strong business results, especially in North America and Asia, as well as the first-time consolidation of new businesses. At the close of 2011, 52 per cent of employees across the group were employed in Europe, a further 23 per cent in America and another 25 per cent in Asia/Australia. The year-end head count showed 3,848 employees at Knorr-Bremse’s five German facilities in Munich, Aldersbach, Berlin, Dresden and Schwieberdingen, 19 per cent of the overall group workforce (PY: 3,431). An additional 3,184 employees, or 16 per cent of the total group workforce, were engaged in R&D and project planning during 2011.
Sales for the subsidiaries in the Asia-Pacific region grew slightly in 2011 by four per cent to 1.08 billion EUR. The Rail Vehicle division solidified its strong sales growth from recent years, not only maintaining those high levels but improving them by a moderate 2 per cent.
On the heels of the large-scale projects in China in recent years, Knorr-Bremse strengthened its market position in Asia by expanding its business with air-conditioning systems, as well as orders to equip local public transit trains and the expansion of its service network. The Asian Commercial Vehicle division also saw positive development, raising revenues by 14 per cent.
Outlook for 2012
The Group is forecasting moderate growth for 2012. In Europe the Group is anticipating unchanged market volume year-on-year for rail vehicles for passenger, freight and commercial hauling. A slight drop is expected on the European commercial vehicle market. In North America the Group is counting on further moderate recovery of the rail-based freight market and growth in commercial vehicle production. Mixed trends are anticipated for South America. The market for rail freight vehicles seems poised to improve slightly, while a drop in passenger rail traffic is expected.
Due to the introduction of the Euro V emission standards, a drop in commercial vehicle production is anticipated. In Asia the Group is expecting growth in the Rail Vehicle division based primarily on strength from India. Commercial vehicle production will likely remain stable. Based on the trends on the regional markets and incoming orders from 2011, Knorr-Bremse is forecasting slightly improved earnings at the group level for 2012.
Due to the introduction of the Euro V emission standards, a drop in commercial vehicle production is anticipated. In Asia the Group is expecting growth in the Rail Vehicle division based primarily on strength from India. Commercial vehicle production will likely remain stable. Based on the trends on the regional markets and incoming orders from 2011, Knorr-Bremse is forecasting slightly improved earnings at the group level for 2012.