Knorr-Bremse delivers growth of more than 500 million euros

München (ots) -

- Sales: 4.24 bn. EUR (previous year: 3.71 bn. EUR)
- Incoming orders: 4.07 bn. EUR (previous year: 4.04 bn. EUR)
- Net income: 329 mn. EUR (previous year: 239 mn. EUR)
- All regions above 1 bn. EUR in revenues for first time

Knorr-Bremse Group

The Knorr-Bremse Group increased sales during the 2011 fiscal year
by more than one-half billion euros (14%) to 4.24 bn. EUR (previous
year: 3.71 bn. EUR). The group again benefited in 2011 from its
strong global position in the rail vehicle systems and commercial
vehicles sectors. At 2.19 bn. EUR in sales, the Rail Vehicle Systems
division contributed 51% of the group's overall revenues; the
Commercial Vehicles division produced the remaining 49% at 2.07 bn.
EUR.

In the Rail Vehicles division the improved sales figures can be
attributed to growth in North America, reflecting recovery on the
freight market, and to the Europe market. Alongside targeted
acquisitions and joint ventures, 2011 also saw a focus on regional
growth as part of a strategy to expand its market presence. One
important milestone in expanding the Russian business came in late
October with approval of KAB60 control valves designed especially for
Russian freight traffic. As part of the ongoing strategic development
of the worldwide network, 2011 will also see expansions of the
Chinese engineering and production sites in Suzhou (braking systems),
Quingdao (door systems) and Shanghai (air conditioning systems). The
acquisition of Canada's Technologies Lanka company has lead to
improved technology in the door systems area. The doors business was
also reinforced through the acquisition of Kalmar Tagkompetens, a
Swedish service provider. The acquisition of Comet Fans in Italy
extended Knorr-Bremse's product portfolio for fans for rail vehicle
applications.

The Commercial Vehicles division benefited in particular from the
sustained rejuvenation of the commercial vehicles market in Europe
and North America. The founding of a joint venture for the
manufacture of components for commercial braking systems and the
power train in partnership with China's CAFF Automotive Braking &
Steering Systems helped pave the way for a significant expansion of
China-based activities in the commercial vehicles area. Knorr-
Bremse's North American subsidiary Bendix added object recognition
and data management for assist systems to its competencies through
the acquisition of the Iteris company. The launch of serial delivery
of anti-lock braking systems for agricultural vehicles during this
reporting year also helped Knorr-Bremse make its entry into a new
business area. In 2011, the Commercial Vehicle Systems division was
voted "Best Brand in the Commercial Vehicle Sector" in the brakes
category for the sixth time running. The division was also singled
out for a VDA Logistik Award based on its efficient production and
logistics processes.

Incoming orders within the group rose slightly from the prior year
based on rising demand in both divisions in the North American
region, to 4.07 bn. EUR from 4.04 bn. EUR a year ago. Net profits
totaled 329 mn. EUR (previous year: 239 mn. EUR), corresponding to a
ROI of 7.8% (PY: 6.4%). The growth reflects both improved economy of
scale and in particular improved efficiency in workflow and process
optimization. The consistent pursuit of the Knorr-Bremse philosophy
of development and on-site production of product families for its
customers, including in the emergent BRIC states, played a decisive
factor in the group's success. It also means that a large share of
the workforce is located in low-wage countries, across all
departments.

The Group workforce grew by 11.1% for the reporting year, to
20,050 employees from 18,053 (12/31/2010). The growth reflected the
strong business results, especially in North America and Asia, as
well as the first-time consolidation of new businesses. At the close
of 2011, 52% of employees across the group were employed in Europe, a
further 23% in America and another 25% in Asia/Australia. The 2011
year-end head count showed 3,848 employees at Knorr-Bremse's five
German facilities in Munich, Aldersbach, Berlin, Dresden and
Schwieberdingen, 19% of the overall group workforce (PY: 3,431). An
additional 3,184 employees, or 16% of the total group workforce, were
engaged in R&D and project planning during 2011.

The three major regions where the Knorr-Bremse Group operates -
Europe, the Americas and Asia/Australia - contributed to the sales
trend as follows:

Europe region

In the Europe region, sales increased to 2.58 billion EUR (2009:
1.84 billion EUR). In an improving market environment for local
public transport and in light of stabilization of the freight market,
the Rail Vehicle Systems division produced positive 2011 sales
figures reflecting 3% growth. The significant growth in Europe comes
thanks in particular to the Commercial Vehicle Systems division,
which increased sales by 25% year-over-year. It profited from the
ongoing recovery of the commercial vehicle industry and from its own
improved market position.

Americas region

The Group rose above the 1 billion euro sales mark in 2011, on
sales of 1,065 million EUR for the Americas region (2010: EUR 891
million). The Rail Vehicle Systems division posted a 20% rise on the
back of an improved domestic market for freight cars and locomotives.
In the Commercial Vehicles division, the North American business
climate was also improved over the previous year. Knorr- Bremse sales
in the Commercial Vehicle division rose a healthy +21% year-on-year.
The two corporate divisions rose markedly in South America as well,
by 16% for the Rail Vehicle division and 13% for the Commercial
Vehicles division.

Asia/Australia region

Sales for the subsidiaries in the Asia-Pacific region grew
slightly in 2011 by 4% to 1.08 bn EUR (PY: 1.04 bn. EUR). The Rail
Vehicle division solidified its strong sales growth from recent
years, not only maintaining those high levels but improving them by a
moderate 2%. On the heels of the large-scale projects in China in
recent years, Knorr-Bremse strengthened its market position in Asia
by expanding its business with air conditioning systems, as well as
orders to equip local public transit trains and the expansion of its
service network. The Asian Commercial Vehicle division also saw
positive development, raising revenues by 14%.

Outlook for 2012

The Group is forecasting moderate growth for 2012. In Europe the
Group is anticipating unchanged market volume year-on-year for rail
vehicles for passenger, freight and commercial hauling. A slight drop
is expected on the European commercial vehicle market. In North
America the Group is counting on further moderate recovery of the
rail-based freight market and growth in commercial vehicle
production. Mixed trends are anticipated for South America. The
market for rail freight vehicles seems poised to improve slightly,
while a drop in passenger rail traffic is expected. Due to the
introduction of the Euro V emission standards, a drop in commercial
vehicle production is anticipated. In Asia the Group is expecting
growth in the Rail Vehicle division based primarily on strength from
India. Commercial vehicle production will likely remain stable. Based
on the trends on the regional markets and incoming orders from 2011,
Knorr-Bremse is forecasting slightly improved earnings at the group
level for 2012.

The Knorr-Bremse Group is the world's leading manufacturer of
braking systems for rail and commercial vehicles. For more than 100
years now the company has pioneered the development, production,
marketing and servicing of state-of-the-art braking systems. In the
rail vehicle systems sector, the product portfolio also includes
intelligent door systems, control components, air conditioning
systems, windscreen wiper systems and platform doors systems. Knorr-
Bremse also offers virtual driving simulators and e-learning systems
for optimal training of rail personnel. In the commercial vehicle
systems sector, the portfolio ranges from complete braking systems
with driver assistance systems, torsional vibration dampers and power
train-related solutions to transmission control systems for greater
efficiency and lower fuel consumption.

Contact:
Christoph Günter
Vice President Corporate Communications
Phone: +49 (0)89 3547 1402
Fax: +49 (0)89 3547 1403
Email: christoph.guenter@knorr-bremse.com

Knorr-Bremse AG
Moosacher Straße 80
80809 Munich
Germany
www.knorr-bremse.com