BRAKE MANUFACTURER Knorr-Bremse Group reported steady growth and record results for 2006, with revenue up 14% to k3?1bn from k2?7bn in 2005. A third of this increase came from acquisitions and two-thirds from organic growth in both the rail and commercial vehicle divisions, particularly in Europe and North America. Revenue in Europe rose to k2?1bn from k1?8bn in 2005, with the Rail Vehicle Systems division making a major contribution through the consolidation of Merak Sistemas Integrados de Climatizaci?n in Spain and Microelettrica Scientifica in Italy. The commercial vehicle sector was strong in North America, while a decline in South America was offset by exchange rate fluctuations to give overall revenue of k960m in the Americas, up from k872m. Demand for rail vehicles in the Asia-Pacific region brought an increase in revenue from k179m to more than k200m, with China adopting Knorr-Bremse products for main line as well as metro rolling stock. Expansion at the group's nine Chinese sites contributed to an increase in the overall workforce by 900 staff to 13 000 at the end of the year. Knorr-Bremse Group predicts 'stable business trends' for 2007, with an expected decline in North American commercial vehicles offset by a favourable market in Europe, though the company warns it is 'unlikely that the high levels of 2006 will be maintained' in the rail sector. There will be further development of four joint ventures in China which were established in 2006. n
