Overall, the performance of the Metal Forming Division in the first quarter of 2015/16 was at a quite satisfactory level, although there were marked differences between economic regions and industries.
In the first months of the current business year, the Automotive Body Parts business segment continued to be characterized by an optimistic mood that included not only the premium segment but the manufacturers of sub-compact and compact cars as well. The positive trend that had already been in place for some time on the European automobile market continued on an even wider basis in the first months of the new business year. While China has now become the most important single market for European premium products, the growth rates seen in prior periods have more recently lost some of their luster. Besides China, the USA still remain the most important market for the premium segment, although the development there has recently been more differentiated, depending on manufacturer and model policy. The automobile models that are significant for the development of the Automotive Body Parts business segment performed very well overall in the first quarter of 2015/16.
In the Tubes & Sections business segment, business performance varied greatly from region to region. The economies of Brazil and Russia that had been considered to be emerging markets skidded into a massive recession—for different reasons—and China has also recently demonstrated very little momentum. In contrast, the economic environment in the European core markets Germany and France was characterized by a slight upwards trend. The situation in Great Britain and the USA has continued to be satisfactory, with both regions showing stable momentum with regard to demand. Viewed globally, the fact that the automobile manufacturers have able to achieve very good capacity utilization has resulted in continuing strong demand and an excellent order situation for precision tube components and special profiles for the aviation industry. The entire construction industry and the truck sector, however, have seen only a slight recovery trend. The agricultural machine industry also remained under pressure due to low prices for food staples.
The Precision Strip business segment has experienced a solid development despite the continuing intense competition in its market environment. Similarly, the momentum that the Warehouse & Rack Solutions business segment has seen in recent quarters has persisted into the new business year and the segment continues to profit from a rewarding situation as far as projects are concerned, especially in the high-bay racking systems segment and in road safety components.
As far as investments are concerned, the Metal Forming Division maintained focus on the implementation of its internationalization strategy in the Automotive Body Parts business segment. In the current business year, two new “phs” facilities for the press-hardening of steel are being built in the USA and China. They are slated for completion in the business year 2015/16; then there will be a total of eight facilities for the indirect manufacture of “phs-ultraform.” In the business year 2015/16, the first pilot facility for “phs-directform” will be built.
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