Dürr AG — Earnings Release 1999

Jan 26, 2000

News Details

Ad-hoc | 26 January 2000 08:11

Ad hoc-Service: Dürr AG Englisch

Ad-hoc announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. —————————————————————————— Dürr continues expansion trend in 1999 also -EBITDA notably increased -All-time high in sales and incoming orders -Strengthening of technological position with high-tech innovations: Ecopaint robot/EMOS automation software/cleaning technology for precision parts -Strategic orientation with big potentials in new business areas: manufacturing support services/vehicle final assembly -Consistently dynamic development in sales and earnings also expected for the year 2000 and beyond Stuttgart, 26.1.2000 – After the conclusion of the business year, Dürr AG is herewith announcing the preliminary financial figures for 1999. For the first time these figures, including the comparison values for the previous year, have been drawn up according to US-GAAP. The past business year 1999 was an exceptional year, in which the technology group Dürr saw strategic developments that added a new dimension to its business: The main steps were the acquisition of a decisive stake in the leading French competitor Alstom Automation S.A., the movement into the growth market of manufacturing support services, and the expansion of Dürrs systems range by including further steps of the value added chain in automobile manufacture, in particular through the planned acquisition of Carl Schenck AG. All-time high in sales and incoming orders Sales in the Dürr Group increased in 1999 by about 15% to euro 1,179 m (previous year euro 1,014 m). Incoming orders of euro 1,121 m exceeded the year-earlier figure (euro 1,087 m) by 3 %. Orders on hand totaling euro 790 m at year’s end were only slightly below the previous year’s figure (euro 799 m), which means that the capacities of the Dürr Group are to a large extent well utilized over the year 2000. Premier Manufacturing Support Services Inc., the company acquired in April 1999, was consolidated from April 1, 1999 forward. The stakes in Alstom Automation S.A. and in Carl Schenck AG will not have an effect on the accounts until the year 2000. EBIT AND EBITDA notably above previous year EBIT (earnings before interest and taxes) and EBITDA (earnings before interest, taxes, depreciation and amortization) are well above the figures of the previous year in each case. Due to depreciations on the goodwill of acquired companies, earnings before taxes are at the level of the previous year. The number of employees has gone up as a result of the acquisitions At the end of 1999 the Dürr Group employed 7,227 people worldwide. The acquisition of the Premier Group with its personnel-intensive business accounts for 3,259 employees out of this figure. High capital expenditure In the past year the Dürr Group invested in long-term financial assets totaling euro 74.1 m (previous year euro 48,1 m). The main item is the acquisition of the service company Premier. In 1999 Dürr invested about euro 20.9 m (previous year euro 29.2 m) in property, plant and equipment. Main items were a new technology center in the USA, the extension of manufacturing facilities as well as investments in information technology. Paint Business Unit (Dürr Systems Group) The Paint Business Unit achieved sales totaling euro 930 m in 1999 (euro 871 m in the previous year). An essential factor for success in the market were innovative technologies such as the Dürr Ecopaint robot and consistent EMOS software solutions in control, automation, monitoring and management systems. Dürr obtained additional market opportunities in paint finishing systems by taking over Alstom Automation S.A., the leading French paint shop manufacturer for the automotive industry and its component suppliers. Alstom Automation has capabilities in final vehicle assembly, which complements Dürr’s product portfolio in this area well. Industrial Cleaning Systems Business Unit (Dürr Ecoclean Group) With record sales of euro 178 m (previous year euro 143 m) the Industrial Cleaning Systems business unit has again confirmed its leading position in the world market. Thanks to its general contractor capabilities and the takeover of the American filtration specialist HR Black, the Dürr Ecoclean Group has further strengthened its standing as a supplier of complete manufacturing systems for the power train (engines, gear units, axles). Manufacturing Support Services Business Unit (Premier Group) In the eight months that Premier Manufacturing Support Services Inc., Cincinnati, USA has belonged to the Dürr Group, the company has achieved sales of euro 71 m. This specialized service provider to the automotive industry has a leading international position in this market segment and maintains operations in 11 countries. Apart from planning and building paint shops, Dürr together with Premier, is the first company among its competitors to offer a well matched systems service package to support the automobile factories in the manufacturing process. New management structure utilizes synergy potentials Since the beginning of the year 2000, Dürr AG as a strategic management holding is subdivided into five business units: Paint, Environmental, Powertrain, Automotion and Services. The new management structure which is designed as an answer to the global orientation of the automobile manufacturers, provides additional synergies in purchasing, sales, research and development and also for the administrative functions. Outlook For the year 2000 Dürr expects a further upturn for the world economy. Whereas the economic climate in the automotive industry of the industrialized countries will remain at the same high level, Dürr expects further stabilization and upswing tendencies in Latin America and in South-East Asia. Dürr backs its competitiveness with a comprehensive program for the enhancement of processes and structures. This includes, for example, the increased utilization of e-commerce for global purchasing and sales, the harmonization of IT structures throughout the Group, and a consistent key figures system focussed on value- oriented corporate management. In view of a good project situation in all major business units and due to the new activities the technology group Dürr sees good prospects for two-digit growth for the business year 2000. In the upcoming years Dürr expects notably increasing sales and earnings also. In 1997, Dürr had announced the doubling of sales to around euro 2 bn within five years; Dürr is expecting to achieve this goal in 2001 already. Financial Press Conference, April 17, 2000, Stuttgart Dürr Aktiengesellschaft / Investor Relations D-70432 Stuttgart Phone 0049 (711) 136-1095 / Fax 0049 (711) 136-1716 http://www@durr.com / e-mail: corpcom@durr.com End of Message