Mark Selway
Chief Executive and Interim Divisional Managing Director
“During the second half of the year we made good progress on a number of strategic
initiatives including simplifying the organisation structure in Europe, improving
operational performance through the application of lean, addressing supply chain
complexities and implementing a new system of costing world-wide.”
Performance Review
Case studies online
The division focused on a number of strategic activities during
the second half including simplifying the organisational
structure, improving operational performance through the
application of lean manufacturing, upgrading IT systems,
addressing supply chain complexities, introducing standard
costing and increasing investment in new product development.
Our review of the Industrial Automation market confirmed that
we have excellent market positions, with a valuable installed
base and access to a high margin aftermarket. We are now
developing detailed product roadmaps in each of the key
geographies which will underpin our plans for growth.
Key Achievements
• Good growth in the European truck business following the
introduction of new Euro VI engines
• Introduced standard costing and disciplined profit and
product analysis tools across all operations to improve
competitiveness and profit visibility
• Introduced lean manufacturing techniques and operational
excellence initiatives across the global manufacturing footprint
• Restructured and simplified the IMI Norgren European
organisation
Market Review
The global economic outlook for 2015 remains mixed with
lead market indicators including the Purchasing Managers
Index (PMI) weakening in the second half of 2014 most
notably in Europe. While the division expects the general
industrial markets in the US and Asia Pacific to remain
positive, European markets are expected to remain
challenging. In the truck sector we expect the European
market to remain stable while North America is forecast to
deliver further growth which will more than offset continued
sluggish market conditions in Brazil.
Outlook
Based on the current market environment and lead indicators,
we expect modest organic revenue growth with operating
margins at similar levels to 2014. The benefits of stronger
market conditions in North America combined with an
improved performance in Europe is expected to fund the
division’s 2015 investments, most notably in Asia, to support
the long-term development of the business.
CASE STUDY
IMI Precision show Engineering GREAT with a cost and
space saving solution
Problem:
CAMC a manufacturer and supplier of heavy duty
trucks in China needed to replace solenoid valves critical to the
functions within the vehicle’s lift axle and braking systems. The
valves being used were leaking and were not energy efficient.
Solution:
Precision Engineering supplied a customised valve
package that provided enhanced reliability at a lower cost than
alternative systems available in the market. The solution reduced
potential leak paths and is able to withstand high levels of vibration
and extreme environmental conditions. It is also lighter and smaller
which reduces costs and increases space savings. CAMC is
incorporating this valve package within all their trucks for both
their domestic and export market.
Overmoulded
design
Reduces
potential
leak paths
No-fault
forward
system
New manifold valve with quick ‘twist
lock’ assembly connection
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Strategic Review
Corporate Governance
Financial Statements
Introduction
Annual Report and Accounts 2014
