Company outlook
At 22% and 20%,respectively, we witnessed very strong growth in incoming orders in 2007 and 2006. In 2008 we want to reach last year’s high level, even though our order intake in 2007 had included the large order worth well over € 100 million from the BMW Group. We expect to see further growth in new orders in the revamp and services business in 2008. Given the high orders on hand at the end of 2007 Group sales should again increase by between 5% and 10% in 2008.
Our target at the EBIT level continues to be a margin of 5%. This is based on the planned increase in our gross margin through improved internal processes. In addition, selling and administrative costs should rise less than proportionally compared to sales.
We expect another substantial increase in net income 2008 versus 2007. The tax rate should decrease to a future normal level of 30% (2007: 39.0%). Net income should allow a higher dividend to be paid. From today’s vantage point, we expect a further earnings improvement in 2009.
We expect cash flow from operating activities in 2008 to at least reach the 2007 level. On a like-for-like basis net working capital should not increase despite rising sales revenues. We will continue to keep a close focus on improving net working capital management. We aim to at least hold free cash flow at the 2007 level, so net financial debt should be reduced and liquidity improved.
The following financial targets are the result of our strategy process Dürr 2010 :
- Sales revenues at least € 1.7 billion
- EBIT margin about 6%
- ROCE about 22%
- Equity ratio 30 – 35%