Dürr posts record figures for financial year 2000 - Success as a partner to the automobile industry

04/17/2001

Following dynamic development last year Dürr AG, Stuttgart, one of the leading suppliers of manufacturing systems for the automobile industry, also expects double digit growth rates in earnings and sales for financial year 2001. In view of the restrained state of the automobile economy, the technology group is concentrating on improving profitability, strengthening competence in the growth market of engineering services and conquering new markets with innovative technologies.

Together with the companies acquired in recent years, and above all with Carl Schenck AG, the Dürr Technology Group has developed into a leading global competence centre for automobile manufacturing technologies. Dürr designs and supplies turnkey manufacturing systems complete with associated support services up to and including BOT contracts. Its customers include all vehicle manufacturers worldwide. In addition with the Schenck link-up Dürr is excellently placed in terms of market and technology positions in selected key industries.

Commenting on the positive start to the year 2001 at the Annual Report and Accounts press conference held at the new Dürr Engineering Centre in Stuttgart, recently constructed at a cost of some 20 million euro, Hans Dieter Pötsch, Chairman of the Board of Dürr AG, said, "Despite difficult economic conditions, our new strategic orientation offers a good base from which to expand our development further. The main motivation for investment at present is the improvement of efficiency, quality and flexibility in automobile manufacture. In addition there is a continuing trend towards outsourcing design and manufacturing services."

Record figures for financial year 2000

Dürr - together with Carl Schenck AG (figures included from April 2000) and the Dürr 50 % holding in Alstom Automation S. A. (now Dürr-AIS) consolidated at equity - reached new highs in financial year 2000.EBITDA (earnings before interest, tax, depreciation and amortisation) at 119.8 million euro (65.4 million for the previous year) represented an increase of 83.3 %. Dürr's EBIT (earnings before interest and tax) showed growth of 76.4 % to 73 million euro (41.4 million previous year). Earnings before tax (EBT) rose by 30 % from 35.6 million euro to 46.3 million euro. Net profit for the year increased by 38.6 % from 16.6 million to 23 million euro. Earnings per share were 1.69 euro representing an increase of 32 % (1.28 euro previous year), dividend is to be increased by 10 % to 1.10 euro. Director of Finance, Dr. Wolfgang Baur, said "This represents a return of 4.6 % at the end of the year 2000 and places Dürr high amongst German joint stock companies."

Consolidated sales for the Dürr Group rose by 67 % to 2,042 million euro (1,224 million previous year). Excluding figures relating to acquisitions the increase was 17 %. All Business Units showed positive development in total sales. Paint Systems - the largest Business Unit - reached 1,082 million euro, representing an increase of 40 % (773 million euro in the previous year). Automotion increased its figure by 7 % to 207 million euro (194 million previously), Environmental by 31 % to 107 million (81 million previously) and Ecoclean by 8 % to 220 million euro (204 million euro in the previous year). As a result of consolidation of the Premier Group, acquired in 1999, for the first time, Services Business Unit showed an increase in total sales over a period of 12 months of 72 % to 122 million euro (71 million euro previously). The Schenck Group also contributed greatly to sales growth by achieving sales figures for the consolidation period of 172 million euro.

Order intake for the Dürr Group at 1,969 million euro exceeded the figures for the previous year (1,120 million euro) by 76 %. Orders in hand valued at 1,106 million euro (744 million previous year / + 49 %) will ensure a high level of utilisation of facilities in financial year 2001. The number of employees at year end 2000 rose, mainly as a result of the takeover of Schenck, to 11,558 (7,255 previous year / + 59 %).

Extended spectrum of services for vehicle development and test bed technology

Following the acquisitions of recent years, Dürr is now concentrating on rounding off its range of products and services. In February 2001 Dürr enhanced its spectrum of systems for vehicle development when the Schenck Testing and Automation Equipment Division established a joint venture with the British company, Ricardo plc, a leading specialist in the development of engines, transmissions and vehicles. Dürr Chairman, Hans Dieter Pötsch had this to say about the new venture "Direct access to developments in engine technology not only enables us to improve and develop our test bed technologies swiftly but also provides us at an early stage with knowledge of the new manufacturing technologies which will be needed later." From a strategic point of view it is also of importance to note that for the first time Dürr is able to provide complete test centre solutions - design, supply, operation.

Fast expansion in the growth market of engineering

Dürr is to develop its competence in the field of engineering for individual manufacturing stages as well as for complete factories. These activities will be brought into a separate company, DS Engineering GmbH. Pötsch explained, "The expansion of our engineering activities, together with our growing share in the support services field, is a logical step on the path towards making Dürr more independent of cyclic patterns of plant investment." Today we already have around 200 Dürr and Schenck employees working on engineering concepts for the automobile industry. This is a market, which offers good perspectives for growth, in view of the continuing trend towards outsourcing of engineering services.

Stock option plan as an incentive for management personnel

"Dürr has reached an excellent strategic position and possesses enormous potential" said Hans Dieter Pötsch and added, "Management is now faced with the challenge of putting our new strategy into full effect." With its "Dürr International Stock Options Plan" (DISOP) Dürr is offering added incentive to the 150 people, that form its top management team, to become more directly involved in the company's success. DISOP is designed to run for a period of five years and is made up of a combination of shares and share options purchases. The Management and Supervisory Boards will present proposals for approval as part of the Agenda for the Dürr Annual General Meeting on 30 May 2001.

Innovations bring market success

Research and development spending, representing approximately 6 % of turnover, have contributed greatly to the market success of the Dürr high-tech group. Market acceptance of the latest generation of Dürr paint robots has been especially pleasing so too has that of the new software solutions for supervisory control systems, test systems and measuring and process techniques. INTX AG, which has acquired its first holdings in startup companies, will accelerate access to technologies of the future like multimedia, sensory techniques and nanotechnology.

High-tech solutions also form the basis for improving our market position in Japan, where Dürr sees promising prospects for highly efficient paint application systems and the innovative dip painting method RoDip. Dürr Japan K.K., a wholly owned company, was founded at the beginning of the year.

2001 double digit growth rates expected

Dürr and Schenck continued to achieve the dynamic growth of previous years during the first quarter of 2001. Sales rose to 354 million euro ( 288 million last year; + 23 %), order intake increased by 22 % to 421 million euro (344 million last year) , orders in hand reached 1,137 million euro (808 million last year; + 41 %) and EBITDA (earnings before interest, tax, depreciation and amortisation) rose by 64 % to 27 million euro (16.5 million last year).

Optimistic outlook for financial year 2001

Growth forecasts for the industrial countries are stabilising at a low level. Dürr expects its main circle of customers, those in the automobile industry, to have a continuing need to invest in means of improving efficiency, flexibility, quality and environmental acceptability and also expects competition for these investment projects to be intense. Dürr's new strategy enables the company to participate in a variety of programmes linked to differing investment time cycles and associated with numerous value adding stages of car manufacture.

During financial year 2001 the focus will be on improving profitability with a continuing emphasis on cost factors. Dürr has initiated a programme aimed at increasing profitability worldwide, is taking advantage of e-business to optimise purchasing and procurement procedures and is making full use of synergies within the new Dürr Group structure.

In view of the large volume of orders in hand and a good first quarter, Dürr expects sales and earnings to rise by double digit percentages with a proportionally greater increase in earnings.