Business Development in the First Six Months of 2001 - Dürr continues growth trend

08/09/2001

• Significant increase in sales and EBITDA
• Good business development to continue beyond period under review
• Double-digit growth rate in sales and earnings expected for the whole year
• Uncertainties in global economy and automotive business

The Dürr Technology Group has grown further in terms of sales and EBITDA in the first six months of the fiscal year 2001. Against the backdrop of a high order backlog and continuing dynamic business beyond the period under review, the Board of Management is expecting double-digit growth percentages in sales and earnings for the whole year, with more than proportionate growth in earnings. Dürr sees certain risks on account of a continuing market weakness in the USA and Japan and the negative effects this has on the global economy.

The Dürr Group reports according to US-GAAP. The German subsidiary Dürr-AIS GmbH which incorporates the paint systems business acquired from the ABB Group has been included in the Group accounts since January 1, 2001. All the companies acquired from Alstom Automation have been fully consolidated since May 1, 2001. Carl Schenck AG has been consolidated since April 3, 2000. The figures of the Schenck corporate division Test and Automation Systems are included in the figures of the Automotion business unit. The Schenck corporate divisions Measuring and Process Systems, Balancing and Diagnostics Systems, and Schenck Fertigungs- & Service GmbH have been organised in the new business unit Measuring Systems with retroactive effect from January 1, 2001. The figures for the business units represent total values for sales and incoming orders including business transactions with other business units, whereas the Group figures are consolidated.

Double-digit growth in sales; exceptionally good development of EBITDA

Dürr was able to increase earnings before interest, taxes, depreciation and am-ortization (EBITDA) in the first six months of 2001 by 58 % to Euro 54.1 m (previous year: Euro 34.2 m). Earnings before taxes (EBT) totaling Euro 12.2 m are slightly below the level of the previous year (Euro 12.5 m; -2.4 %). This figure has been in-fluenced by financing costs and goodwill amortization from acquisitions and by integration costs.

Compared to the first six months of 2000, sales increased by 30 % to Euro 887.5 m (previous year Euro 683.8 m). Normally sales in the second half of a fiscal year are higher than in the first six months.

With incoming orders totaling Euro 1,008.2 m, Dürr can report an increase of 10.6 % (previous year Euro 911.5 m). Orders on hand were up by 14.1 % to Euro 1,455.1 m (previous year Euro 1,274.9 m) which leaves capacities well utilized into the fiscal year 2002. The number of employees increased by 15.4 % to 12,754 worldwide, especially as a result of companies having been consoli-dated for the first time. Investments in property, plant and equipment totaled Euro 19.9 m in the first six months.

"With strategically selected acquisitions we have opened up growth opportuni-ties in important stages of the value chain in automobile manufacturing, and thanks to a broader range of products and services we have made Dürr less susceptible to cyclical fluctuations in demand" says Hans Dieter Pötsch, Chairman of the Board of Dürr AG. Dürr wants to continue on this successful path in future and intends to further expand its portfolio, for example in planning of manufacturing processes and automotive plants, or in the area of test systems for vehicle development.

Paint Systems business unit: successful also in France

The Paint Systems business unit achieved total sales of Euro 443.5 m and reports total incoming orders of Euro 463.2 m. EBITDA totaled Euro 17.9 m. In a heterogeneous business environment, with activities in the USA significantly slackening, the Paint Systems business unit was able to hold its own with leading-edge technologies for vehicle body and parts painting, for example with the innovative RoDip dip painting method. An above-average share of incoming orders is attributable to French car manufacturers.

Automotion business unit: new market opportunities

Total sales of the Automotion business unit amounted to Euro 195.0 m, total in-coming orders stood at Euro 210.9 m, and EBITDA at Euro 0.4 m. Contrary to the European markets, the US market was clearly reticent as regards capital in-vestments. The newly founded company, DSEngineering GmbH, which is a service provider in designing manufacturing processes, automotive plants and development centers, reports a good work load. A joint venture in the area of test systems for vehicle and component development clearly improves the strategic position of this business area.

Environmental business unit: concentration on key industries

With total sales amounting to Euro 27.6 m and total incoming orders of Euro 41.9 m, the Environmental business unit reported EBITDA of Euro 1.5 m. In Europe, Dürr Environmental enjoyed buoyant demand for air purification systems in its key markets, namely the pharmaceutical and chemical industries.

Ecoclean business unit: growth with systems solutions

Dürr Ecoclean achieved total sales of Euro 109.6 m in the first six months of 2001, and reported total incoming orders totaling Euro 138.3 m. EBITDA stood at Euro 7.1 m. With its range of integrated systems solutions for parts cleaning and filtration, this business unit has benefited from the sustained high innovation rate in engine and transmission manufacture and the boom in the diesel engine sector

Services business unit: good growth opportunities

Total sales of the Services business unit amounted Euro 61.0 m. Total incoming orders stood at Euro 61.2 m, EBITDA at Euro 5.1 m. This business unit, represented by the Premier Group, concluded multi-annual contracts with car factories in Poland and the UK for high-quality technical services such as plant and factory maintenance.

Measuring Systems: new business unit

This business unit achieved total sales of Euro 128.9 m, and total incoming orders of Euro 163.6 m. EBITDA stood at Euro 0.4 m. Business activities with balancing systems for turbo machines have shown a promising development. Positive results were also achieved in several regions with solutions for automation of shipping procedures in the cement industry. The US market was sluggish.

INTX business unit: shareholdings with corporate venture capital

The corporate venture capital company INTX AG founded in the fiscal year 2000 agreed on a shareholding in Netcoach GmbH, Berlin in July. Netcoach develops and markets knowledge management software for the maintenance of complex technical systems. Currently INTX is reviewing other opportunities for taking holdings in the area of electro-rheological fluids, precision robotics and nano-technology.

Outlook for the whole year 2001: confidence in an uncertain business environment

The Dürr Technology Group has started the second half of the year with a good order backlog. The positive development in incoming orders continued in July. There are some uncertainties, however, as regards the development of the world economy and business in the automotive industry in the second half of the year. A continuing downturn of the economy could mean that incoming orders may be below the target figures fixed at the beginning of the year. Dürr has responded to persistent cost pressure by putting in place a program for improving earnings, by systematically taking advantage of synergies within the Dürr Group and by pushing the introduction of e-business processes.

The Board of Management is still expecting double-digit growth percentages in sales and earnings for the whole year, with more than proportionate growth in earnings.

The consolidated balance sheet, the consolidated statement of income and the consolidated statement of cash flow for Dürr AG for the first six month of 2001 will be displayed on the Dürr homepage www.durr.com under "Investor Relations" from the end of August.

On October 24, 2001 Dürr will publish its¥ 9 month figures for the fiscal year 2001.