Outlook
From today’s vantage point Dürr expects incoming orders in excess of € 2 billion in 2012; this means that orders in 2012 would be about € 400 million above the pre-2008/2009 crisis level. Sales revenues are expected to advance to a good € 2 billion in the current year. This is supported by the high order backlog and the Group’s excellent position in the emerging markets. Dürr assumes that the buoyant current demand will continue, especially in the automotive industry. The EBIT margin should be between 5.5 and 6%. In 2013 we expect to achieve a margin of 6% and ROCE of at least 20%.
Financing
In the second quarter 2011 Dürr has signed a new syndicated loan contract which expires in June 2014. The cash credit line stands at € 50 million and the guaranteed credit line at € 180 million. The cash credit line was unused as of December 31, 2011.
In 2004 Dürr issued a corporate bond with a coupon of 9.75% and a volume of € 200 million with a term through July 2011. In mid-October 2008, Dürr redeemed half of the corporate bond at 105.250%. The company redeemed the remaining € 100 million of the corporate bond 2004/2011 in October 2010 at a rate of 100%. The financial resources for the early repayment come from a new loan that was issued in September 2010/December 2010 (maturity: September 2015; interest rate: 7.25%; volume: € 225 million). The rest of the new loan will be used for long-term financing of the Dürr Group.
We can also draw on a loan of € 40 million from the European Investment Bank for research purposes. The loan has a term of up to 4 years.
As of December 31, 2012 we had cash-on-hand of € 301.8 million. The net financial status was with € 25.3 million significant positive.
The Dürr strategy provides us with a clear road map for profitable growth in the longer term. The debt reduction in the past few years and the successful refinancing exercise are further cornerstones for a successful development of the company: Dürr has greater financial leeway, and has a sound financing solution with reduced interest expenses until the year 2015.
