Freudenberg Group continues to increase sales and result

Weinheim, Germany - The Freudenberg Group reported sales over €5000 million for the year to December 2006. Adjusted to allow for exchange rate influences as well as acquisition and disinvestment effects, the rise in sales is roughly 6 percent. The result of the operational activities rose by approximately 9 percent compared with the same period of the preceding year. At the end of 2006 Freudenberg employed 33 526 people, 141 more than on the balance-sheet date of the previous year.

Freudenberg's FDS business (for seals and vibration control) also reported healthy growth, with sales rising to €2788 million, from €2693 million in 2005.

The company said it expanded its global alliances further in the 2006 financial year. The company said, "In the field of vibration technology, preparations were made for strengthening cooperation between Vibracoustic (Europe) and Vibracoustic North America, the vibration technology business of Freudenberg-NOK General Partnership, Plymouth, USA. Freudenberg-NOK General Partnership made further progress in strengthening business with the general industry sector.

In seals, Freudenberg said, "The global orientation of the O-ring Division is being intensified following the successful start up of the new O-ring factory of Freudenberg Seals and Vibration Control Technology Europe in OberManagement Report of the Freudenberg Groupwihl, which was set up in close cooperation with the Japanese partner NOK Corporation, Tokyo, Japan, (NOK)."

In its annual review, Freudenberg said, "Sales by the Freudenberg Seals and Vibration Control Technology Europe Business Group in the year rose by 5.6 percent to €1075 million (2005: €1018 million). All major Divisions contributed to this marked growth, albeit to a varying degree. There was also a rise in the number of employees in the 2006 financial year, with the headcountincreasing from 8340 to 8501.

It added, "Automotive business, which accounts for roughly half of sales, grew by 3.9 percent despite strong price pressure. The main growth driver was business with system component manufacturers, which increased by 8.3 percent."

Investment projects in 2006 included the expansion of special seals production in Ceperka, Czech Republic, and a logistics center in Lorsch, Germany. A new production facility for O-rings set up in close cooperation with the Japanese partner NOK has been in operation at the site in Oberwihl, Germany, since the first half of 2006.

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Press releasefrom Freudenberg