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Press Releases

Preh outperforms the overall market in 2009 - return to growth track in 2010

Preh GmbH, Bad Neustadt an der Saale, has come through the crisis year of 2009 significantly better than the automobile sector as a whole. In comparative terms, the supplier had a drop in sales of 13%. In absolute terms, Preh’s sales dropped to €248.8 million in 2009, compared with €304.7 million in 2008. However, the 2008 value still included sales generated by PrehTronics GmbH, which was sold in July 2008. Preh was able to achieve particular market success in 2009 in the NAFTA region, where sales bucked the trend, increasing by 25%.

Nevertheless, the crisis in the auto industry as a whole had a significant impact on Preh’s profits: Due to a reduction in the orders from automobile manufacturers, 2009 operating income before interest and taxes (EBIT) decreased to -€9.9 million (2008: €8.9 million). Extensive measures to counteract the crisis were implemented at all Preh locations. However, the number of employees increased slightly due to Preh’s international growth: from 2,028 at the end of 2008 to 2,080 at the end of 2009. For 2010, despite ongoing forecasting uncertainties, Preh management expects that there will be a return to the growth rate experienced as before the economic crisis. Preh President Dr. Michael Roesnick anticipates strong double-digit growth in sales and continuous improvement in profits for 2010. Furthermore, Preh will again create new jobs for cutting-edge development activities at the Bad Neustadt center. 


“The worst recession since the founding of the Federal Republic of Germany really put Preh to the test. But backed by outstanding solidarity and willingness to make sacrifices from our employees throughout the organization, we were able to stabilize our company over the long term and come out of the crisis stronger than ever,” said Dr. Michael Roesnick, Preh GmbH president, at the presentation of 2009 key financial data.


Corner turned in 2009 – Return to pre-crisis levels seen for 2010

Following the severe economic downturn and dramatic drop in demand in winter 2008–2009, production at Preh gradually began to recover starting in fall 2009. Moreover, after nine downside months, income began to improve in the fourth quarter of 2009. Due to very successful new products – for the BMW 5 Series and Audi A1 and A8 models, for example – business at Preh is now back on the growth track. For 2010, the automobile supplier is projecting solid double-digit growth in sales and the return to pre-crisis levels. 


But Dr. Roesnick believes it is still too early to sound the all-clear. After all, the Greece euro crisis has raised new questions regarding economic recovery: “Therefore, we are also planning conservatively for 2010. But due to the current new-model production starts and the large contracts that we recently received, we again see Preh on a path of stable growth,” explained Roesnick. Our income will also increase substantially in 2010. 


Growth in the US bucks trend

Preh’s comparatively recent commitment in the US paid off in the crisis year of 2009, despite a massive market downturn in the NAFTA region: The supplier achieved a growth in sales of 25%, bucking the general downwards trend. This was primarily due to the fact that Preh achieved a breakthrough with its customer Ford in 2008 and greatly expanded its business in 2009. Preh is benefiting from its role as a supplier for the Ford’s high-volume F-150, F-250 and F-350 pickups and the new models in the Ford Mustang, Taurus and Lincoln MKZ/MKT lines. In addition, Preh was able to expand on its new business with General Motors, despite the bankruptcy proceedings of the largest U.S. manufacturer. Above all, the mainstays of growth in 2009 for supplying GM were the Chevrolet Equinox and GMC Terrain models. The trend for Preh in the U.S.A. continues to point upwards for 2010. 


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