(Ad-hoc) Dürr Group business developments as of Sept. 30, 2002 - Incoming orders up sharply despite difficult business environment

11/20/2002 - Dürr AG - WKN 556520 / ISIN DE0005565204

With an increase of consolidated incoming orders by 25% to EUR 1,775 million (PY: EUR 1,417m), the Dürr Group has held its own well in an economically difficult environment in the first 9 months of 2002. At EUR 1,427m, consolidated sales almost reached the high previous-year level (PY: EUR 1,445m). Consolidated orders on hand were up 21%, to EUR 1,515m (PY: EUR 1,250m). Important contributions toward this success were provided by major orders from automobile manufacturers in Europe, North America and China.

The operating income EBITDA improved significantly in the third quarter (EUR 28.1m), bringing total EBITDA for the first 9 months of 2002 to EUR 50.0m (PY: EUR 89.2 m). It has been influenced significantly by restructuring expenses of roughly EUR 22m for German and American Group companies and by cyclically induced weakness of demand, especially in connection with high-margin short-term orders. Earnings before taxes for the first 3 quarters 2002 were EUR minus 5.7m (PY: EUR 20.1m).

The Group's workforce was 7% smaller as of September 30, 2002, not counting new hires for specific projects in the Services business unit. All in all, the number of employees was down 1.7% to 12,608 (PY: 12,823). Capital expenditures for property, plant and equipment amounted to EUR 12.8m (PY: EUR 29.9m).

Since the situation in strategic large projects is predominantly stable, the Board of Management anticipates that for the entire year 2002 incoming orders and orders on hand will be above last year¥s, but with different levels of capacity utilization in the various business units. Dürr expects sales to be on the same order of magnitude as in the previous year. But with the world economy and automotive business still weak and competition still intense, total 2002 earnings before restructuring expenses will not match the previous-year figures. Dürr foresees good chances for improving earnings in 2003. Assistance here will come from the large volume of orders on hand, carefully focused restructuring programs to enhance profitability, and the unabated fast pace of innovation with corresponding R&D expenditures.

Dürr AG
The executive board

End of disclosure