North America Leads First-Half Sales Increase at Behr

TROY, Mich., Aug. 27, 2003 -- Led by growth in North America, German-based Behr GmbH & Co. KG has reported a first-half sales increase of nearly 18 percent to $1.66 billion in 2003.

Sales from Behr's engine cooling and air conditioning product divisions for the first half-year were much higher than the previous year due to the acquisition of a DaimlerChrysler facility in Dayton, Ohio.

Excluding sales from Behr Dayton Thermal Products LLC, the former DaimlerChrysler operation in Ohio, sales growth was 2.2 percent. A specialist in vehicle air conditioning and engine cooling, Behr is one of the world's leading automotive suppliers.

"Given the declining demand in the car and truck markets in Europe and the U.S., Behr has succeeded yet again in increasing its market shares," said Behr Group CEO Marcus Flik.

"The positive sales trend looks to continue in the coming years, thanks to major orders for vehicle platforms both in the premium and high-volume ranges in Europe and North America," Flik said. "Behr can look back at a steady first six months. Our cost offensive was launched a year ago; it aims to improve our cost competitiveness against global rivals and boost our own profitability.

"Major projects aimed at introducing new products and production methods are progressing as planned. However, a general decrease in demand in passenger vehicle and truck markets, plus a weak dollar, are burdens on euro- based consolidated sales at Behr America, Inc."

On June 30, 2003, the number of Behr Group employees was almost 16,300 -- about one percent more than at the end of 2002. The expansion of Behr's North American headquarters and technical center in Troy, Michigan contributed to the increase.

In the first half of 2003, Behr's global investments increased by 29 percent over the previous year to $72 million. Behr's investment activities were primarily focused on North America, Germany, France and the Czech Republic.

At the company's annual press conference last March, Behr predicted a seven percent increase in sales to approximately $3.3 billion for fiscal year 2003. "We may fall just short of this figure due to the weaker dollar, and while 2003 will be difficult, it will be a good year for Behr," said Flik. "If the economic conditions stay the same, we can count on profits that are comparable to the previous year." Behr's 2002 profit was $76.5 million.

With headquarters in Troy, Michigan, Behr America is a leading supplier of engine cooling and air conditioning systems to the automobile industry. The company has 3,000 employees at facilities in Troy and Webberville, Michigan; Dayton, Ohio; Charleston, South Carolina; Canton, South Dakota, and Fort Worth, Texas.

Behr America's parent company, Behr GmbH & Co. KG, based in Germany, has been supplying automobile makers for nearly 100 years. Group sales in the 2002 business year came to approximately $2.7 billion. Currently Behr employs almost 16,300 people in 25 production facilities in Europe, North and South America, South Africa and India.

Additional information is at www.behrgroup.com