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Technology group in a new dimension: Dürr about to make leap forward in growth and earnings

04/17/2000

• Very good start in the first quarter of 2000
• 1999: double digit growth rates in sales and earnings
• Competitive edge through innovative technologies
• Supplier of complete production systems and services

Dürr AG, Stuttgart, has had a good start into the year 2000 with continued dynamic development in sales and earnings: Sales totaled about 288 m euro in the first quarter; incoming orders stood at about 344 m euro, orders on hand stood at 808 m euro. Income before taxes amounted to 7.5 m euro. All key figures are significantly above those of the previous year.

Dürr is now rapidly further strengthening its leading position as supplier of production systems for automobile manufacturing and other industrial branches after taking over the mechatronics group Carl Schenck AG, the American service specialist Premier, and the French paint finishing specialist Alstom Automation.

"Thanks to the successful reorientation as supplier of production systems for automobile manufacturing and as provider of services, we are expecting a positive development and a significant leap forward in sales and earnings" explained Hans Dieter Pötsch, Chairman of the Board of Management of Dürr AG today at the financial press conference in Stuttgart. " Due to the generally good project situation in the automotive industry, we are expecting the award of major contracts in the coming months. We are also expecting further growth incentives thanks to the continued upward trend of Carl Schenck AG that was taken over with a majority stake early this month.

In the financial year 1999 Schenck achieved sales of 462 m euro and income before taxes of 30 m euro.

1999: Double digit growth rates in sales and earnings

Dürr AG, Stuttgart has ended the financial year 1999 with double digit growth rates in sales and earnings:

Income before taxes, for the first time reported in the balance sheet according to US-GAAP, rose in 1999 by 15.2 % to 35.6 m euro. The profit for the year was up by 9.2 % to 16.6 m euro. Before-tax return on sales was almost the same as in the previous year with 2.9 % (1998: 3.0 %). Return on equity exceeded the year-earlier figure with 14.4 % (1998: 13.7 %). The dividend per unit share (no par value) will be increased to 1 euro.

Sales rose in 1999 by 20.7 % to 1,223.9 m euro. Dürr's incoming orders stood at DM 1,120.2 m euro in 1999, which is an increase of 3 %. The number of people employed in the group rose from 4072 to 7255 due to the acquisition of Premier.

Dr. Baur, Member of the Board and responsible for finances, commented this as follows: "We are expecting the earnings-oriented growth trend to continue in the current financial year. We are excellently equipped for this thanks to the very good start in the first quarter.

On account of the positive prospects, Dürr will achieve the goal announced in 1997 of doubling sales to about 2 bn euro within five years as early as 2001.

Technologies set standards

One of the main factors that have contributed to Dürr's success in the market are innovative technologies, for whose user-oriented development the group spends about 6 % of sales. Dürr has set standards for example by developing its own robots that achieve excellent results in terms of quality and costs per body. Dürr has also been successful in the market with its consistent software solutions for control, automation and monitoring systems.

Dürr involved as co-player in structural change

Against the backdrop of generally good basic conditions for the economic development in the automotive industry, Dürr has experienced high demand for efficient and flexible production systems. Due to the competitive and innovative pressure in the automotive industry - with key account customers accounting for over 70 % of sales - Dürr is expecting continuously high capital investments in modern manufacturing plants by OEMs and automotive component suppliers, irrespective of current output rates.

"As technology leader and systems supplier, Dürr is actively involved in shaping the structural changes taking place in the automotive industry. Our engineering capabilities and our software creates an essential basis for more efficiency and quality in the manufacturing process, and hence for more competitiveness", says Hans Dieter Pötsch, Chairman of the Board of Management of Dürr AG at the financial press conference. "It is our aim to establish the technology group Dürr, with its competitive edge in hard- and software as a leading international supplier of integrated production systems for automobile manufacturing."

Especially in final vehicle assembly, but also for manufacturing systems for the powertrain, Dürr sees good prospects due to high streamlining and innovation potentials. At the same time, manufacturing support services of all kinds through to the operation of complete production systems are increasingly being outsourced to competent service providers such as Dürr.