Dürr AG — Earnings Release 2004

Nov 4, 2004

News Details

Ad-hoc | 4 November 2004 23:51

Dürr lowers earnings forecast for 2004

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Dürr lowers earnings forecast for 2004 – Unforeseen expenses totaling 12 – 14 million euros at Ecoclean and Final Assembly Systems – Earnings before taxes expected to be between 8 and 12 million euros in 2004 – SPRINT SQUARED proceeding on schedule Stuttgart, November 4, 2004 – At Dürr’s Ecoclean business unit, problems involved in winding up individual orders – in particular, while putting new process technology into operation – have led to additional expenses totaling about 5 to 6 million euros. In the Final Assembly Systems business unit, unforeseen expenses of 7 to 8 million euros were incurred by the US subsidiary Dürr Production Systems. At this company implementation problems arose unexpectedly during the launch of complex final assembly products on the North American market. As a result of these charges amounting to a total of 12 to 14 million euros, the Board of Management now expects consolidated earnings before taxes of between 8 and 12 million euros for 2004 after previously forecasting an EBT of more than 18.7 million euros. The company-wide earnings enhancement program SPRINT SQUARED is moving ahead briskly. The development of business and earnings in the Paint Systems and Services business units is stable and in line with expectations. The Measuring Systems business unit will markedly improve its earnings before taxes and reach the break-even point in 2004. Dürr will release its interim report for the period ended September 30, 2004 on November 12. Contact: Dürr AG Susanne E. Langer Head of Public & Investor Relations Fon:+49 (0)711 136-1785 Fax:+49 (0)711 136-1034 Email:corpcom@durr.com Email:investor.relations@durr.com end of ad-hoc-announcement (c)DGAP 04.11.2004 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Dürr lowers earnings forecast for 2004 – Unforeseen expenses totaling 12 – 14 million euros at Final Assembly Systems and Ecoclean – Earnings before taxes expected to be between 8 and 12 million euros in 2004 – Other business units on track – SPRINT SQUARED moving ahead on schedule Stuttgart, November 4, 2004 – Dürr has revised its earnings forecast for 2004 downward owing to unforeseen expenses totaling 12 to 14 million euros. Having previously projected earnings before taxes (EBT) of more than 18.7 million euros, the company has now set its target range at 8 to 12 million euros. Additional expenses of 7 to 8 million euros have occurred at the US-based Dürr Production Systems, a company that is part of the Final Assembly Systems business unit. At this company implementation problems arose unexpectedly during the launch of complex final assembly products on the North American market. At the Ecoclean business unit additional costs in the amount of 5 to 6 million euros were incurred mainly while putting new production technology into operation in the Coolant Filtration product line. “This setback is annoying, to put it mildly, since our SPRINT SQUARED earnings enhancement program is moving along and yielding positive earnings effects,” emphasized Dürr AG CEO Stephan Rojahn. “We have taken the right tack, however, by making changes in the areas of project management and personnel qualification aimed at reducing future risks associated with order processing,” he added. Other business units on track The Paint Systems, Services, and Measuring Systems business units continue to be well on track. After successful restructuring, the Measuring Systems business unit will reach the break-even point this year. Dürr will report details of its business development on November 12, when it presents the figures for the first nine months of 2004. The Dürr Group is one of the world’s leading suppliers of production systems and manufacturing support services for the automotive industry. In 2003 Dürr achieved sales of almost 2.3 billion euros with about 12,750 employees. Contact: Dürr AG Susanne E. Langer Head of Public & Investor Relations Fon:+49 (0)711 136-1785 Fax:+49 (0)711 136-1034 Email:corpcom@durr.com Email:investor.relations@durr.com ——————————————————————————– WKN: 556520; ISIN: DE0005565204; Index: SDAX Listed: Amtlicher Markt in Frankfurt (Prime Standard) und Stuttgart; Freiverkehr in Berlin-Bremen, Düsseldorf, Hamburg und Hannover 042351 Nov 04