• Contact
• Locations
• German

Dürr's 2003 earnings burdened by restructuring and valuation allowances

03/30/2004

According to preliminary figures, the Dürr Group increased consolidated sales in fiscal 2003 by about 8% to over Euro 2.2 billion (2002: Euro 2.1 billion). Also, at Euro 2.4 billion, new orders were slightly above the high level of 2002 (Euro 2.3 billion). Adjusted for exchange rate effects, sales would be about 17% and new orders about 10% above year-earlier levels.

Earnings before taxes for fiscal 2003 amount to about minus Euro 7 million. The main reasons for the earnings decline compared with the year before (2002: Euro 22.6 million) are restructuring costs particularly for closing the Schenck premanufacturing plant in Darmstadt (Euro 18.4 million). Added to that are expenses for no longer needed interest rate swaps and impairment losses on the book value of investments (Euro 11 million). Without these latter adjustments, earnings before taxes would be in the slightly positive range, as announced in the report on the third quarter of 2003.

A valuation allowance in the amount of Euro 23 million on deferred tax assets for tax loss carryforwards has resulted in a net loss of about Euro 30 million for fiscal 2003. Since this valuation allowance is expense-neutral, Dürr shows positive cash flow from business operations for last year (about Euro 50 million).

Dürr expects significantly positive earnings before taxes in fiscal 2004, to which the SPRINT SQUARE earnings enhancement program will contribute substantially.

Dürr will present the complete figures for fiscal 2003 on April 29, 2004.