Preh Sets A New Sales Record in 2011

NOVI, MI, May 11, 2012 (Press-News.org) In just over a year after the entry of the Chinese majority shareholder Joyson, Preh GmbH (Bad Neustadt an der Saale) management showed a positive interim balance: the automotive supplier has continued its dynamic growth and achieved a new sales record of EUR412 million in 2011. Compared to the previous strong year, this signifies another increase of 20%.

Operating profit before interest and taxes (EBIT) rose from EUR17.8 million to EUR27.8 million. Besides opening a second Preh plant in Mexico and the successful start of production in the new factory in Ningbo, China; European Preh locations in Bad Neustadt, Germany; Trofa, Portugal and Brasov, Romania showed positive business development in 2011.

Accordingly, the number of employees at year's end 2011 rose to 2,817 employees worldwide (+15.7%). At Bad Neustadt, the number of employees also rose from 1,167 to 1,238 (+6.1%). With the growing trend, Preh is looking for around 90 highly qualified professionals at headquarters in the current fiscal year, especially engineers in the development area. Preh management is confident of further business development in 2012, with significant increase in both sales and earnings.

Discussing the balance sheet figures for the previous fiscal year, Preh GmbH President and CEO Dr. Michael Roesnick said, "With the entry of our Chinese majority shareholder about a year ago, we established two guiding principles: 'Preh remains Preh' and 'Preh goes global.' What at first glance might seem like a contradiction, we have reconciled and lived consistently."

"With the introduction of Joyson and market entry into China," Roesnick added, "Preh has indeed significantly developed and is on its way to becoming a global player in the worldwide market for automotive electronics. At the same time, however, we will hold on to our proven corporate culture that ensures a high degree of continuity for customers and employees. In this respect, the German-Chinese partnership between Preh and Joyson is, in my view, a complete success."

Strengthening management
Continuity and development are also characterized by an important personnel change in Preh's Management - the promotion of former development executive director Jochen Ehrenberg to a member of the board of Preh GmbH on June 1, 2012. There he will take over the responsibility for the newly created area of product development and purchasing. This will allow for further growth of the automotive supplier and the internationalization of development activities. This expansion of the management board is also a clear signal to customers and employees that despite the entry of the Chinese majority shareholder Joyson, Preh remains in the future a German automotive supplier with a strengthened international footprint in Europe, North America and Asia.

Building a second plant in Mexico / Start of production in China
Due to strong growth in the NAFTA region, Preh took a second plant in Monterrey into production in the summer of 2011. In a first step, the new Mexican facility comprises an area of 8,300 m². The extension was necessary because Preh recorded exceptional growth in North America, and in just six years, rose from nothing to become the second largest supplier of climate control systems in the United States.

A central role in Preh's internationalization strategy is played by the new plant, built by the German supplier with Joyson in Ningbo, China. The new production facility covers an area of 8,000 m² and opened in early September of 2011. Among the first Preh products that left the assembly lines were steering wheel multifunction switches and climate control systems for the Chinese market. The market regions of Europe and North America continue to be served from the current Preh production sites in Germany, Portugal, Mexico and Romania.

New orders from Audi and Porsche
In the current fiscal year, Preh was able to announce two prestigious orders from renowned German automobile manufacturers. Together with Audi, the Bad Neustadt-based driver controls specialist has developed the climate control system and multifunction steering wheel switches for the new Audi A3 and has launched it into mass production. The products are coming off production lines in Portugal and Romania. In addition, Preh has also been awarded the climate control system for the new Porsche 911. It comes in three variants and is made at Preh's headquarters in Bad Neustadt. Also in Bad Neustadt, the electronic control unit for battery management of the BMW Active E will be made. After successful development work, Preh was able to carve out a new segment in the field of electric vehicles.

About Preh
Preh is an internationally active group with around 2,800 employees in Germany, Portugal, Mexico, the United States, Romania and China. The company's headquarters is in Bad Neustadt an der Saale. The company was founded in 1919. In 2011, Preh generated sales of EUR412 million. Design and manufacturing capabilities of Preh focus on climate and driver control systems, sensors, electronic control units and assembly systems for leading automotive manufacturers. For more information, please visit: http://www.preh.com.