Outlook

From today’s vantage point, Dürr expects a stabilized and positive overall development in 2010. After last year’s guidance had been overshadowed by exceptional uncertainty as a result of the economic crisis, the reliability of the forecasting has improved in 2010. The orders on hand at the end of 2009 - about 80% of which will feed through to sales in 2010, the new projects in the pipeline in the emerging markets, and the recovery expected in the services business, will lead to sales growth of at least 7% in 2010. From today’s vantage point, EBIT will improve strongly on the back of the optimization and cost reduction measures that have been implemented, and earnings after tax will at least break even.

Financing 

In summer 2008 Dürr arranged a new corporate financing program. First of all we increased Dürr AG's capital stock by just under 10%, which means we were able to cash in € 43.7 million net in July. In September we signed a contract for a syndicated loan of € 440 million. The loan is split up into a revolving line of credit of € 200 million to meet the company's cash needs and a guaranteed credit line of € 240 million. As a next step we redeemed € 100 million in mid-October 2008, i.e. one half of our corporate bond at 105.250%, which we negotiated in the year 2004 with a coupon of 9.75%. We possibly redeem the remaining 50% of the corporate bond before the end of the term in mid 2011. That depends on the development of the capital market, over the course of the year 2010. 

As of December 31, 2009 we have cash-on-hand of € 104 million and non-utilized cash and guarantee lines worth of € 288 million. In October 2009 the credit terms and conditions of the syndicated loan agreement were adapted to the current market conditions and the lower business volume. So the cash credit line is now € 180 million and the guarantee line € 220 million.

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 in the year 2008 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 2011. We launched already refinancing activities for the bond and the syndicated loan. We are looking for closing the refinancing end of 2010, beginning of 2011.