Brose continues to grow

Brose’s biggest growth was in the seat systems business unit (coburg location): sales increased by 20 percent and exceeded the one billion euro mark for the first time. Global, cross-series seating platforms now account for more than half of the business. The company is "well positioned" for this thanks to its international presence, as stated in a press release.

Sales of door systems (hallstadt) increased by 9 percent to 2.4 billion euros. With a market share of 33 percent, brose further expanded its leading global position in this area in 2012. The contactless tailgate drive, which received the "supplier innovation award" from BMW, attracted particular attention from customers and the media in the "highest customer benefit" category and also won the pace award in north america received. Until the end of this year, the comfort product will be available in 14 different vehicle models from the brands ford, mercedes-benz and BMW.
In the engine business (wurzburg), sales increased by an above-average 14 percent to 1.02 billion euros. Among other things, the motors business unit is benefiting from the trend toward electrification of auxiliary units. This significantly reduces the CO2 emissions of the vehicles. Examples include the electromechanical steering system and the electromechanical double-clutch transmission.

At the meeting of the brose shareholders and the advisory board in berlin, it was also decided to give the employees a further share in the company’s success. Brose spends a total of more than 26 million euros on performance payments. This is the highest score in the history of the club. The chairman of the shareholders’ meeting, michael stoschek, commented: "the increase in performance last year was only possible thanks to the dedicated efforts of our employees. Therefore we decided to let all employees participate in this success. Out of social responsibility, we will include temporary workers on an equal footing as in previous years."

In 2012, the family-owned company invested around 260 million euros in the expansion of existing and new plants as well as in manufacturing facilities: for example, brose started up new plants in chongqing and peking (china) as well as in queretaro (mexico) and acquired a new production facility in new boston/detroit (USA). "With these investments, we have created the conditions to have sufficient production space for the expected growth in north america and asia by 2016", explained jurgen otto. The chairman of the management board went on to say: "our goal is to grow in a controlled, profitable and self-financed manner in order to maintain our independence and flexibility as a family business."

as a result of the business development in 2012, the number of employees rose by 1250 to around 20,500.500 employees, including 330 trainees. The largest increase in personnel took place in north america (plus 718) and in asia (plus 431). Expenditure on research and development and on employee training accounted for more than 7 percent of sales in 2012.

In addition to 20.500 of its own employees, brose employs roughly the same number at suppliers in germany and abroad. The company procures materials, services and capital goods worth 3.2 billion euros worldwide every year, making it an important economic factor. Brose ranks 43rd among all global automotive suppliers in terms of sales and is the sixth-largest family-owned company in bavaria.

The franconian locations of coburg, hallstadt and wurzburg benefited from the positive trend. At the end of 2012, around 6300 employees from 43 countries were working in the region, including around 260 trainees. In addition to our own employees, a further 3.100 people working for brose at suppliers in france. The purchasing power from the net salaries of all direct and indirect employees amounted to 255 million euros. Brose bought materials and services worth 274 million euros from regional firms last year.

For 2013, the brose group expects slight growth of 3 percent to 4.6 billion euros. Management expects the individual regions to develop differently: while demand in europe is expected to continue to decline and the market is not expected to recover until 2014 at the earliest, growth in the north american and asian regions is expected to remain strong.

At their meeting, the shareholders approved a total investment budget of 350 million euros (up 13 percent from 2012). A good half of this will strengthen the franconian sites in bamberg, wurzburg and coburg. With the economy continuing and demand stable, the management expects a business volume of 5 billion euros by 2015.