The Knorr-Bremse Group, world’s leading manufacturer of braking systems for rail and commercial vehicles, posted a sales revenue of Euro 5.20 billion in the 2014 financial year, an increase of 21 per cent over 2013 (€4.30 billion). All regions and divisions contributed to this growth, with the commercial vehicle systems division posting eight per cent higher sales revenue, at €2.23 billion (€2.07 billion). A high level of market penetration, combined with positive market trends, boosted the value of incoming orders by 16 per cent to €5.50 billion (€4.75 billion).
This positive development was due partly to the growth in sales revenues but also to the systematic measures taken in recent years to improve process efficiency and optimize costs, which enabled Knorr-Bremse to compensate for considerable price increase and cost pressure, particularly in the OE segment.
Mr. Klaus Deller, Chairman of the Executive Board of Knorr-Bremse AG, comments, “This success is the result of the company’s long-term strategic orientation. Our investments over the last two decades are now bearing fruit and providing the basis for substantial growth. They have enabled us to expand our regional presence and strengthen our systems competence with a view to further increasing customer value and continuously improving our processes.”
The company’s manufacturing facility in Munich, the new test and development centre for the development of innovative braking systems, with a total investment of almost €90 million, accommodates 350 engineers and technicians and over 100 different test rigs, is now in place. Concentrating braking technology expertise from the rail and commercial vehicle divisions will boost joint developments and foster synergies.
Region-wise sales
In the European region, sales revenues rose nine per cent to €2.45 billion in 2014(€2.25 billion). In the North and South American regions, the company’s revenues increased by 14 per cent to €1.16 billion (€1.02 billion). In the commercial vehicle sector the group’s North American subsidiary Bendix posted sales revenues of more than US$1 billion for the first time in 2014, increasing market share and securing important aftermarket orders.
Asian and Australian regions saw an increase of 54 per cent to €1.59 billion (€1.03 billion). Against the background of a stable market in the commercial vehicle sector, the company took an important strategic step towards further strengthening its position in the Chinese market. With its new joint venture with Dongfeng Electronic & Technology Co. Ltd., Knorr-Bremse will produce components for complete commercial vehicle braking systems, enabling it to respond better to customer requirements in this technologically developing market.
Outlook for 2015
The group expects better growth in sales revenues and net income against a background of restrained global economic performance in 2015. “We have been able to significantly exceed our targets for 2014,” sums up Mr. Deller. “Our strategy of substantial growth will continue. Our new joint venture with Dongfeng, which has got off to a successful start, promises to significantly boost the expansion of our commercial vehicle activities in China. Everything that we do is driven by a determination to generate added value for our customers. Our company is thriving, and we aim to grow it further. In addition to our efforts to generate continued organic growth we are equally determined to meet our targets by making strategic acquisitions.”