Dürr AG — Earnings Release 2000

Jan 24, 2001

News Details

Ad-hoc | 24 January 2001 08:27

Ad hoc-Service: Dürr AG engl.

Ad-hoc Mitteilung übermittelt durch die DGAP. Für den Inhalt der Mitteilung ist allein der Emittent verantwortlich. —————————————————————————— Preliminary Report on the Fiscal Year 2000 New strategy expands Dürrs outlook – Double digit growth rate for EBT and EBITDA – High increase rates in sales and incoming orders – Further growth expected in 2001 Stuttgart, January 24, 2001 – Against the backdrop of a good worldwide economic trend in the automotive industry, the Dürr Technological Group has – based on preliminary figures in US-GAAP format – achieved its planned goals for the fiscal year 2000, and has achieved new highs in sales, incoming orders and earnings. Thanks to the successful extension of its systems portfolio and generally stable demand in the automotive industry, Dürr is again expecting a double digit growth rate in sales and earnings for the fiscal year 2001. EBIT (earnings before interest and taxes) and EBITDA (earnings before interest, taxes, depreciation and amortization) have been significantly increased compared to 1999. Dürr also registers a double-digit growth rate in EBT (earnings before taxes). Dürr has increased Group Sales by 54 % to euro 1,890 m (1999: euro 1,224 m). Incoming orders totaling euro 1,950 m exceed the previous year’s level of euro 1,120 m by 74 %. Orders on hand totaled euro 1,110 m (1999: euro 744 m, + 49 %). Dürr spent euro 229 m on investments in other companies (1999: euro 86.1 m). This mainly includes the acquisition of Carl Schenck AG (consolidated since April 1, 2000) and the 50 % stake in Alstom Automation S.A. (today Dürr-AIS) which has been included at equity. Capital expenditures totaled euro 39 m (previous year euro 29.2 m). At the end of the year 2000, 11,920 people were working in the Dürr Group (1999: 7,255). With sales totaling euro 904 m, the biggest business unit Paint Systems reports an increase in sales of 24 % (1999: euro 731 m). Application Systems was the most successful product line, thanks mainly to dynamic demand for Dürr paint robots. With two major contracts from French car manufacturers won by Dürr-AIS the market position in France was strengthened. Effective January 1, 2001, Dürr acquired the license for the RoDip coating process from ABB and also the German operation ABB Paint Automation, which is expecting total sales of some euro 50 m for 2001. The extension of activities in Japan will further strengthen Dürr’s core business in the area of paint systems. The Automotion business unit increased total sales by 7 % to euro 215 m (previous year 201 m). The business unit’s contribution to consolidated Group sales totaled euro 106 m due to the high proportion of Group-internal supplies for systems contracts. Together with the Schenck corporate division Test and Automation Systems, Dürr Automotion has developed into a leading systems supplier in final vehicle assembly. In light of fierce competition in some instances and a good project outlook, the Environmental business unit’s sales increased by 25% to euro 95 m (previous year euro 76 m). The Protecs business unit, which was renamed Ecoclean with effect on January 1 to avoid tradename contestations, reports an increase in total sales by 7 % to euro 237 m (1999: euro 221 m). Consolidated sales totaled euro 193 m due to Group-internal supplies to other business units effected by Dürr Ecoclean for systems contracts. Due to the introduction of new engine and transmission generations, Dürr Ecoclean is expecting capital investments in the automotive industry to remain at a constantly high level. The Services business unit, which is represented by the Premier Group (consolidated since May 1999) achieved sales of euro 119 m in 2000. This is equivalent to an increase of 12 % compared to Premier sales for the whole year 1999. Compared to Premier sales that were included in the consolidated sales of the Dürr Group in 1999 for eight months in the amount of euro 71 m, this results in an increase of 68 % in 2000. The business unit reports good incoming orders from the automotive industry. Apart from cleaning machinery and equipment, there has been a growing demand for technically sophisticated services as well as for BOT (build, operate, transfer) contracts. Carl Schenck AG – whose financial statement was based on US-GAAP for the first time – increased sales by 24 % to euro 578 m (1999: euro 468 m). Apart from projects in final vehicle assembly, demand for planning and engineering services for material flow and logistics systems and for products and services for vehicle development and testing also accounted for the positive development of the corporate division Test and Automation Systems. The development in Schenck’s corporate divisions, Measuring and Process Systems as well as Balancing and Diagnostic Systems, has also been good, thanks to solid demand in key industries. The new INTX business unit founded in the year 2000 will push ahead the introduction of Dürr technologies to new markets, and the corporate venture capital company INTX AG will invest in start-up companies whose products and services are interesting for Dürr’s core business. After having examined numerous projects, INTX is planning to make its first investments in other companies in the first six months of 2001. Outlook for the fiscal year 2001 For 2001 Dürr is expecting the global economy to grow moderately. Dürr is also expecting vehicle production rates to remain at the same high level as in the year 2000, in the years to come – with regional differences. In case vehicle production rates decline, contrary to current forecasts, Dürr still expects investment levels to remain relatively stable. Motives for capital investment are, for instance, the offensive model policy of car manufacturers, and the increase of productivity, quality and environmental safety of production processes through new systems. In addition, the proportion of services business is steadily growing, and this helps to ease the effects of cyclical fluctuations. Opportunities for growth and earnings have also sprung from the acquired companies. After strong external growth in the past years, Dürr will be concentrating on the improvement of earnings, e.g. by taking advantage of synergies within the Dürr Group. For the fiscal year 2001 Dürr is again expecting a double digit growth rate in sales and earnings. Dürr Aktiengesellschaft Gerhard Zaiss / Susanne E. Langer Phone (00 49) 7 11 / 1 36 10 95 or and – 17 85 Ende der Mitteilung