Dürr extends capabilities in test systems for engine development

11/05/2001

• Schenck Pegasus signs joint venture agreement with Horiba and Ricardo
• Technological capabilities pooled to offer new opportunities
• Partners employ each other's business strength and sales forces

The Dürr Technology Group's Automotion business unit has established the joint venture SRH Systems Ltd. with headquarters in Worcester, UK together with Ricardo plc, Shoreham by Sea, UK and Horiba Ltd., Kyoto, Japan through the Group company, Schenck Pegasus GmbH, Darmstadt. The entrepreneurial responsibility lies with Schenck Pegasus.

SRH Systems will develop advanced automation and data acquisition systems and measuring technologies for test centers and will also be an engineering center for further joint development projects. The partners will pool their know-how in the fields of test and development systems for engines and transmissions (Schenck Pegasus), development of engines, transmissions and electronic systems for vehicles (Ricardo), and engine emission testing systems (Horiba). In addition, they will employ each other's worldwide network of development, design and field engineering. The companies will also jointly use their business strength and sales force for their activities in the automobile industry.

Horiba Ltd. is the worldwide leading supplier of sensors and systems for engine emission testing. Ricardo plc is a leading service provider for the development of engines, transmissions and electronic systems for vehicles. Schenck Pegasus is market leader in test and automation systems for engine and transmission development. A Letter of Intent for a cooperation had already been announced in June.

On account of the dynamic development in transmission and engine manufacture (e.g. diesel engine boom, direct fuel injection systems) and due to emission limits and fleet consumption levels, Dürr is expecting demand for engine development and test systems to remain relatively stable in the medium term, even if business in the automobile industry weakens.

The Dürr Technology Group is one of the world's leading suppliers of production systems and manufacturing support services for the vehicle industry and its component suppliers. In the first nine months of the current fiscal year, Dürr increased sales by 22 % compared to the same period in the previous year to EUR 1,445 m (previous year EUR 1,183 m). Earnings before interest, taxes, depreciation and amortization (EBITDA) was up by 49 % in the same period to EUR 89.2 m (previous year EUR 59.8 m).

Forecasts for the whole year 2001 are subject to considerable uncertainty as a result of the economic consequences of the September 11 terrorist attacks. Should world and automobile economies weaken beyond expectations, the effects may also be felt in the current fiscal year. Judging the situation as it appears today Dürr expects double digit percentage growth in sales and earnings, with proportionally greater growth in the latter, for the year as a whole.