Dürr AG — Earnings Release 2001

Oct 24, 2001

News Details

Ad-hoc | 24 October 2001 08:01

Dürr AG english

Dürr maintains position despite difficult environment Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– 9 month figures: Dürr maintains position despite difficult environment Stuttgart, 24 October 2001 – Despite a difficult environment the Dürr Technology Group posted sales for the first three quarters of fiscal year 2001 of 1,445 million euros, an increase of 22% on previous year’s figures (1,183 million euros). Growth in earnings before interest, taxes, depreciation and amortisation (EBITDA) was proportionally higher at 49% representing a total of 89.2 million euros (previous year 59.8 million). Earnings before taxes reflect the influence of goodwill amortisation and financing and integration costs and at 20.1 million euros represent an increase of 2.6% compared with the previous year ( 19.6 million euros). As a result of weaknesses in the economies of the USA, South America and parts of Asia incoming orders at 1,417 million euros were 6.8% below the previous year’s level (1,519 million euros). Several large contracts were received after the period under review, including those for China, details of which were the subject of a recent press release. Orders on hand amounted to 1,250 million euros (previous year 1,397 million; -10.5%). The number of employees as at 30.09.2001 rose, mainly as a result of consolidation, by 14% to 12,823 (previous year 11,247). Judging the situation as it appears today Dürr expects double digit percentage growth in sales and earnings, with proportionally greater growth in the latter, for the year as a whole. Forecasts are subject to considerable uncertainty however as a result of the economic consequences of the terrorist attacks on 11 September. Should world and automobile economies weaken beyond expectations, it may mean that in addition to needing to revise targets and plans for fiscal year 2002, the effects may also be felt in the current business year. In efforts to meet the increasing need to lower costs, Dürr is intensifying programmes to improve profitability and is taking a flexible approach to structures and resources to suit changed circumstances. Despite the uncertain economic situation Dürr, with the broad strategic base offered by its position as a supplier of both manufacturing systems for substantial value-adding operations within the automobile manufacturing process and associated manufacturing support services, sees opportunities for continuing growth in business and profits in the medium term. end of ad-hoc-announcement (c)DGAP 24.10.2001 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Stuttgart, 24 October 2001 – Despite a difficult environment the Dürr Technology Group posted sales for the first three quarters of fiscal year 2001 of 1,445 million euros, an increase of 22% on previous year’s figures (1,183 million euros). Growth in earnings before interest, taxes, depreciation and amortisation (EBITDA) was proportionally higher at 49% representing a total of 89.2 million euros (previous year 59.8 million). Earnings before taxes reflect the influence of goodwill amortisation and financing and integration costs and at 20.1 million euros for the first three quarters represent an increase of 2.6% compared with the previous year (19.6 million euros). Incoming orders at 1,417 million euros were 6.8% lower than in the previous year (1,519 million euros) as a result of weaknesses in the economies of the USA, South America and parts of Asia. Further large orders were received after the period under report, including those for China, details of which were the subject of a recent press release. Orders on hand at 30.9.2001 amounted to 1,250 million euros (previous year 1,397 million euros; -10.5%) and represent a work load for the Dürr Group extending well into 2002. The number of employees worldwide rose by 14% to 12,823 (previous year 11,247), mainly as a result of first-time consolidation of figures for companies within the Group. Investment in tangible assets for the period under report, including additions to tangible fixed assets resulting from acquisitions, totalled 29.9 million euros. Paint Systems business unit achieved total sales of 681.8 million euros and total incoming orders of 618.1 million euros. EBITDA was 33.4 million euros. Total sales for the Automotion business unit reached 340.6 million euros, total incoming orders 304.9 million euros and EBITDA 7.9 million euros. In the first three quarters of 2001 the Ecoclean business unit achieved total sales of 187.8 million euros and total incoming orders of 189.2 million euros. EBITDA amounted to15.5 million euros. Against total sales of 44.7 million euros and total incoming orders of 55.6 million euros, EBITDA for the Environmental business unit was -0.1 million euros. Sales for the Services business unit, represented by the Premier Group, totalled 97.4 million euros, and incoming orders 102.4 million euros. EBITDA amounted to 8.9 million euros. Measuring Systems business unit has achieved sales totalling 213.1 million euros and incoming orders of 239.8 million euros since the beginning of the fiscal year. EBITDA amounted to 4.8 million euros. Outlook Judging the situation as it appears today Dürr expects double digit percentage growth in sales and earnings, with proportionally greater growth in the latter, for the year as a whole. In efforts to meet the increasing need to lower costs, Dürr is intensifying programmes to improve profitability and taking a flexible approach to structures and resources to suit changed circumstances. A reluctance to go ahead with investments in the USA in view of the current economic environment has become more marked in the new general situation and the mood is spreading increasingly to other regions. Currently the project position on European markets and in China remains stable at a high level. However, recent forecasts now expect lower growth rates for the European economy. “At present with the greatly increased risk environment it is virtually impossible to make dependable statements in relation to economic development. Should world and automobile economies weaken beyond expectations, it may mean that in addition to needing to revise targets and plans for fiscal year 2002, the effects may also be felt in the current business year, ” commented Hans Dieter Pötsch, Chairman of the Board of Management of Dürr AG. Despite the uncertain economic situation Dürr remains confident and sees opportunities for continuing growth in business and profits in the medium term. As a global partner of the automobile industry, Dürr, with its broad spectrum of systems and services, profits from the phased investment cycles in the diverse value- adding stages of vehicle manufacture. Compensating fluctuations in demand in individual sectors and regions also assure continuity in the medium term growth curve. Past experience adds to the Group’s confidence as, in the words of Dürr Chairman, Mr Pötsch, ” in the face of such immense competition in the automobile industry, there has to be a call for investment in even more economical manufacturing systems.” Notes The Dürr Group accounts are presented in accordance with US-GAAP guidelines. The German company, Dürr-AIS GmbH, which includes the paint finishing activities taken over from the ABB Group, has been included in the Group figures since 1 January 2001. All companies acquired with the take over of Alstom Automation have been fully consolidated since 1 May 2001. Carl Schenck AG has been included in consolidated figures since 3 April 2000. The figures relating to the Schenck Test and Automation Systems division are included in those for the Dürr Automotion business unit. Schenck divisions, Measuring and Process Systems and Balancing and Diagnostic Systems, together with Schenck Fertigungs- & Service GmbH have been combined retroactively with effect from 1 January 2001 in the new Measuring Systems business unit. The figures quoted relating to sales and incoming orders for business units are total figures and include inter- divisional business with other Group business units, whereas the Group figures represent consolidated values. The consolidated balance sheet, the consolidated statement of income and the consolidated statement of cash flows for Dürr AG for the first nine months of fiscal year 2001 will be available via the ‘Investor Relations’ link at our web site, www.durr.com, as from mid November. ——————————————————————————– WKN: 556520; Index: MDAX Listed: Amtlicher Handel in Frankfurt und Stuttgart; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, Hannover und München 240801 Okt 01