Results for the first half of 2007: Dürr increases sales and new orders
08/09/2007
- Operating earnings and cash flow further improved
- Positive outlook for the full year 2007 confirmed
Stuttgart, August 9, 2007 – The Dürr Group witnessed strong demand from the automotive industry in the first half of 2007, with incoming orders up 7.9% to € 912.4 million. Sales revenues rose by 3.8% to € 650.3 million after Dürr achieved growth of 9.2% in the second quarter. Operating earnings improved in the first six months of 2007 to € 11.4 million (H1 2006: € 9.7 million). Earnings after tax were just positive at € 45 thousand after a loss of € 3.3 million still in the same period last year. The mechanical and plant engineering firm maintains its forecast of sales growth of between 5% and 10% and a significant earnings improvement for 2007.
Dürr AG’s CEO Ralf Dieter commented: “New orders were 40% above sales revenues in the first half. Our reach of orders has therefore continued to grow. Capacities are well utilized until far into 2008.” Orders on hand at June 30, 2007 were worth € 1,070.6 million (June 30, 2006: € 929.9 million), an increase of € 265.4 million versus the end of 2006.
The earnings situation was impaired in the second quarter by delays on
projects in India, especially on a large order. Dürr launched a package of measures including, among other things, a broadening of its local supplier base in India. As a result of the project delays, the gross margin sank to 16.1% from 17.0% in the same period last year. Internal processes are benefiting from the improvements implemented under the Group-wide FOCUS program. As a result, administrative and selling expenses were down overall by 2.7% to € 89.7 million (H1 2006: € 92.1 million).
Cash flow from operating activities (€ -23.3 million) improved significantly by € 28.5 million. The revenue situation should pick up strongly in the further course of the year.
Owing to the good order situation and the first-time consolidation of an Italian subsidiary with 40 employees, the number of employees within the Group rose to 5,836 at June 30, 2007. This is 3.3% more than at the end of 2006 (5,650). The biggest increase was in the growth region of Asia, where the number of employees rose by 16.0% to 697 (December 31, 2006: 601).
At 22.9%, the equity ratio at June 30, 2007 was virtually unchanged versus the previous year (23.0%). Net financial debt amounted to € 145.5 million at June 30, 2007 as compared with € 122.2 million a year earlier. Dürr met most of its financing requirements in the first half of 2007 from cash and cash equivalents.
Unchanged positive outlook
Dürr anticipates a sustained good order situation. The company expects that incoming orders in 2007 will at least match the high 2006 level. Dürr continues to forecast a significant earnings improvement in 2007, especially as higher-margin orders will be executed in the second half. Much of the earnings growth will be realized in the fourth quarter. A further earnings improvement is expected in 2008. The target return for 2008 is an unchanged at least 5% at the operating earnings level.
The Dürr Group is one of the world’s leading suppliers of products, systems, and services for automobile manufacturing. Its range embraces important stages in the vehicle production process. As a systems supplier, Dürr designs and builds paint shops and final assembly plants. Dürr also supplies cleaning and filtration equipment used in the production of engine and transmission components as well as balancing and diagnostic systems for vehicle components. Business with automobile manufacturers and their suppliers accounts for about 90% of consolidated sales. Other important customer groups are the mechanical engineering sector and the chemical, pharmaceutical, coating, and aviation industries.
Key figures in € m | H1 | H1 | Q2 | Q2 |
Incoming orders | 912.4 | 845.3 | 404.1 | 415.4 |
Orders on hand (June 30) | 1,070.6 | 929.9 | 1,070.6 | 929.9 |
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Sales revenues | 650.3 | 626.3 | 346.2 | 317.1 |
Operating earnings |
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One-time expenses | 0.4 | 3.7 | 0.3 | 3.1 |
Earnings after tax | 0.0 | -3.3 | 2.1 | 1.3 |
Earnings per share (in €) | 0.02 | -0.22 | 0.15 | 0.08 |
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Cash flow from operating activities | -23.3 | -51.8 | -14.3 | -24.0 |
Cash flow from investing activities | -6.8 | 17.8 | -0.2 | -1.9 |
Cash flow from financing activities | -14.1 | -9.7 | -0.8 | -13.8 |
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Equity (inkl. minority interests) | 245.2 | 240.4 | 245.2 | 240.4 |
Net financial debt (June 30) | 145.5 | 122.2 | 145.5 | 122.2 |
Net working capital (June 30) | 155.8 | 182.6 | 155.8 | 182.6 |
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Employees (June 30) | 5,836 | 5,755 | 5,836 | 5,755 |
All figures relate to the Dürr Group’s continuing operations. The figures have been calculated on the basis of IFRS.
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Dürr AG corpcom(at)durr.com |
