Annual Report and Accounts for the year ended 31 March 2009
Annual Report and Accounts for the year ended 31 March 2009

Automotive Turbocharger

A precision machined, electron beam welded and CNC balanced shaft and wheel assembly.

MACHINING TO MICRONS, BALANCING TO THE FINEST TOLERANCES IN THE WORLD

Hampson’s advanced manufacturing technology is at the heart of the automotive industry’s response to the need for leaner-burning, more fuel efficient engines for on and off-highway use.

A GLOBAL REPUTATION FOR INNOVATIVE ENGINEERING & EXCELLENCE

PICTURED: A precision machined, electron beam welded and CNC balanced shaft and wheel assembly.

7%

OF TOTAL GROUP REVENUE

OPERATIONS

The Automotive Turbocharger division operates from two facilities, one in Skelmersdale, UK and the other in Bangalore, India. Principal activities comprise the manufacture of small, highly engineered precision components and rotating assemblies in medium to high volume for automotive turbocharger, fuel delivery and other very close tolerance applications.

Automotive Revenue -22%
Automotive Trading Profit -21.7%

COMPANIES

  • Hampson Precision Automotive
  • Hampson Precision Automotive (India)

OPERATIONAL LOCATIONS

UK

  • Skelmersdale

India 

  • Bangalore

KEY PRODUCTS

  • Fully balanced shaft and wheel assemblies
  • Thrust bearings
  • Journal bearings
  • Thrust collars, sleeves and spacers

PERFORMANCE

THE NEW WORLD-CLASS FACILITY IN INDIA CONTINUES TO GENERATE INTEREST FROM EXISTING AND NEW AUTOMOTIVE CUSTOMERS.

AUTOMOTIVE TURBOCHARGER

Activities of the Automotive Turbocharger division comprise the manufacture of small, highly engineered precision components and rotating assemblies in medium-to-high volume for automotive turbocharger, fuel delivery and other very close tolerance applications.

Hampson’s precision manufacturing technology, which offers machining to tolerances measured in microns, is at the heart of the automotive industry’s move into smaller, leaner-burning, more fuel efficient engines for highway use. Turbocharging is becoming increasingly necessary as a means to meet the ever more stringent demands for environmental-related engine exhaust emission restrictions, without sacrificing vehicle performance. With already high rates of fitment on diesel-engined vehicles, turbochargers are now being increasingly fitted to latest generation gasoline direct injection passenger vehicles, particularly for use in European and Asian markets.

The division operates from two sites, one based in Skelmersdale, UK and the other at our greenfield, purpose-built facility in Bangalore, India. Over 200 people are employed across these two sites.

After an improved first half performance with revenue 6% higher than in the equivalent period in 2007/08, the year as whole saw a decline of £5.1 million (22%) as global automotive demand plummeted across all market sectors, notably from the end of the third quarter onwards. This followed six straight years of previous revenue growth.

As with other automotive businesses across the world, the Group’s Automotive Turbocharger division has experienced a steep reduction in orders to unprecedented low levels as a result of the current global recession.

Performance in the year ended 31 March 2009 reflected some of the most difficult trading conditions the division has ever seen and despite the rapid action taken to reduce the cost base, the reduction in sales volumes means that the division is now loss-making. For the year ended 31 March 2009, a net trading loss of £1.4 million was incurred, compared with a profit of £1.2 million in the previous year.

Total headcount within the division was reduced by 41% over the year, with further labour force reductions in prospect during 2009/10. Despite these and other initiatives to readjust the cost base of the business, trading conditions for the foreseeable future are extremely challenging and, with no sign of any substantive change in the global outlook for automotive demand, are likely to remain so throughout 2009/10.

01

high precision balanced shaft and turbine wheel assemblies

02

Process automation making use of robot technology

01. Hampson manufacture and supply high precision balanced shaft and turbine wheel assemblies for some of the world’s leading turbocharger manufacturers.

02. Process automation making use of robot technology is one of the ways Hampson’s Automotive Turbocharger division maintains technical leadership.