BBS Sales Up, Earnings Down

Despite tough conditions overall, in 2004 BBS Kraftfahrzeugtechnik AG increased consolidated sales by 1.2 per cent to 190.4 million euros. This rise was exclusively driven by business outside Germany, which expanded 4.3 per cent from 94.6 million euros to 98.6 million euros. Consolidated EBIT fell from 10.5 million euros to 7.2 million, while consolidated net income for the year decreased from 4.4 million to 1.0 million euros.

The company reports that the rise in consolidated sales is primarily down to the successful trend for unit sales in France and the United States. On the other hand inside Germany automobile demand dwindled, a fact that was reflected in the decrease of BBS’s consolidated sales inside Germany, which dropped 1.8 per cent from 93.5 million euros to 91.8 million euros.

In 2004, competition became even fiercer in the automotive components industry due to the unsatisfactory demand for cars, specifically in the high-volume European markets, BBS explains. At the same time, material costs jumped by 3.2 per cent from 97.7 million euros to 100.8 million euros owing to the pronounced rise in the price of aluminium. Material costs now account for 52.3 per cent of total output, as opposed to 50.9 per cent the previous year.