(Ad-hoc) Dürr well equipped for a more difficult environment after a strong 2008
02/19/2009 - Dürr AG - WKN 556520 / ISIN DE0005565204
- High gross margin in Q4 2008
- Group net profit in 2008 rises to € 46 million and allows dividend proposal of 70 cents per share
- Order backlog and service business support sales generation in 2009
Stuttgart, February 19, 2009 – On the basis of preliminary figures the Dürr Group´s sales revenues grew to € 1,603 million in 2008. Adjusted for the deliberate reduction in assembly conveyor business, this was an increase of 14%. EBIT was up 30% to € 73 million. This includes last earnings burdens in the assembly conveyor business. Group net profit rose to € 46 million (2007: € 22.2 million). This will enable a dividend of 70 cents per share to be proposed (2007: 40 cents).
Adjusted for the assembly conveyor business, incoming orders declined year over year by 14% to € 1,464 million. The decline was mainly due to the fact that in December 2008 ready to sign paint systems orders worth around € 200 million were postponed to the first half of 2009 by the automobile industry. On the other hand, the mechanical engineering division, Measuring and Process Systems, booked 4% more orders than in 2007.
Despite the project postponements at the end of the year cash flow was positive to the tune of € 31 million. Net financial debt amounted to € 34 million as of December 31, 2008, a reduction of € 26 million year over year. At 31%, the equity ratio exceeded the targeted level of 30% (December 31, 2007: 23.9%). At the end of 2008 Dürr had orders on hand worth € 925 million. This cushion, equivalent to 7 months’ sales, and the stable, shorter-term service business will support sales generation in 2009. The number of employees rose by 207 to 6,143 (+3%) in 2008. 251 new jobs were created in the emerging markets. In addition, a foreign company with 68 employees was consolidated for the first time.
Dürr reacted immediately to the project postponements in December, among other things by running down working time accounts and reducing capacities. Over 200 jobs will be cut in France and the US by the end of March 2009. The number of temporary external workers is being reduced, and short-time working is being introduced at some locations.
Ralf Dieter, Dürr AG’s CEO, commented: “We achieved almost all our targets in 2008 despite the worsening conditions at the end of the year. The gross margin of over 19% in the fourth quarter was the highest for some years. This shows that Dürr is in lean and efficient shape. We are equipped for the downswing but are still watching the market very closely.”
Outlook
Based on the projects currently under negotiation Dürr expects moderate declines in business volume and earnings in 2009. The considerable uncertainties in the automobile industry do not allow an exact forecast at the present time. However, Dürr expects that the automobile industry will continue with its investments in strategically important markets and in rationalization. With energy-saving innovations such as the EcoDryScrubber spray booth concept Dürr can make an important contribution to help customers cut costs. The steady service and revamp business, which accounted for 25% of sales revenues in 2008, is being further expanded. The strengthened equity base and the credit facilities that are firmly committed until into the year 2011 provide a solid financing basis.
The full annual financial statements for 2008 will be presented at the annual press conference on March 18 in Stuttgart after they have been approved by the Supervisory Board.
The Dürr Group is a supplier of plant and equipment that commands leading global market positions in its areas of activity. Business with the automotive industry accounts for about 85% of its sales. Dürr also supplies innovative manufacturing and environmental technologies for the aircraft, mechanical engineering, chemical and pharmaceutical industries. The Dürr Group operates in the market through two divisions. The Paint and Assembly Systems division supplies production and painting technologies, mainly for automotive body & chassis manufacturing. The equipment and systems supplied by the Measuring and Process Systems division are used, among other things, for engine and transmission production and for final vehicle assembly. Dürr achieved sales of € 1.6 billion with approximately 6,143 employees in 2008. Dürr is present in 47 locations in 21 countries around the world.
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| Change |
Incoming orders | 1,464 | 1,782 | -18 |
Orders on hand (Dec. 31) | 925 | 1,083 | -15 |
Sales revenues | 1,603 | 1,477 | +9 |
EBIT (earnings before interest, |
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Group net profit | 46 | 22 | +109 |
Net profit from continuing operations | 34 | 21 | +62 |
Cash flow from operating activities | 31 | 86 | -64 |
Equity with minority interests (Dec. 31) | 341 | 257 | +33 |
Net financial debt (Dec. 31) | 34 | 61 | - |
Employees (Dec. 31) | 6,143 | 5,936 | +3 |
All figures relate to the continuing operations. Group net profit is an exception and also includes discontinued operations. The figures in this press release are preliminary and have not been approved by the Supervisory Board or audited by the external auditor.
Contact:
Dürr Aktiengesellschaft
Günter Dielmann / Mathias Christen
Corporate Communications & Investor Relations
Phone +49 (0)711 136-1785 / -1381
Fax +49 (0)711 136-1716
E-mail corpcom@durr.com
Dürr AG
The executive board
End of disclosure
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Dürr AG corpcom(at)durr.com |
