Dürr AG — Earnings Release 2005

Mar 2, 2006

News Details

Ad-hoc | 2 March 2006 15:20

Dürr AG: Dürr with profit in 2005

Ad hoc announcement transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— Dürr with profit in 2005 Dürr completes financial restructuring on its own Stuttgart, March 2nd, 2006 – Dürr finished realigning group activities to focus on core business with the automotive industry at the end of 2005. Its range of products and services comprises painting and final assembly equipment, environmental technology, balancing and diagnostic technology for vehicle components, and cleaning and filtration systems for production of engine and transmission components. According to preliminary figures (IFRS), Dürr achieved 2005 a positive result after taxes in the group of EUR 4.3 million (previous year: EUR 4.7 million). Set against high income from divestments (EUR 116 million) were one-off expenses from the group’s FOCUS program (EUR 74 million, including EUR 46 million for restructuring). High interest expenses burdened the result. Operating result (EBIT before one-off effects) in continuing operations was positive despite difficult market conditions. Due to lower sales revenues, EBIT before one-off effects decreased by EUR 32.3 million compared with the previous year to EUR 3.5 million. Incoming orders in continuing operations declined by 12% last year to EUR 1,217 million due to the weak demand in plant engineering business (painting and assembly equipment) and for industrial cleaning equipment. Set against that, however, was significantly higher demand in mechanical engineering and systems business (including painting robots and application and balancing systems) and in environmental engineering. Sales revenues in continuing operations decreased by EUR 326 million to EUR 1,400 million mainly due to the expiration of large-scale contracts in the United States. The company’s financial restructuring was completed at the end of 2005. Liquid funds increased by year’s end to EUR 124 million (December 31, 2004: EUR 46.4 million). Drawings on the company’s syndicated line of credit were repaid in full as of December 31, 2005. Dürr accordingly reduced its net financial debt to EUR 85 million (September 30, 2005: EUR 312.2 million). Its financial ratios improved significantly by the end of 2005 partly due to a capital increase, with the equity ratio at 20.9% compared with 15.5% as of December 31, 2004. Outlook: Improved operating result expected in 2006 ‘For 2006, we expect rising demand in service and modernization business,’ says Ralf Dieter, chairman of Dürr AG’s Board of Management, ‘where we have registered an increase of project inquiries.’ Overall, Dürr foresees little change of sales revenues. The operating result is expected to improve significantly. Dürr anticipates positive earnings after taxes. The year 2006 will remain one of transition and implementation of the FOCUS restructuring program. The positive effects of all FOCUS measures will only find expression in the course of 2007. After approval by the Supervisory Board, the complete financial statements for 2005 will be presented at the financial press conference on March 30, 2006. in EUR m 2005 2004 Sales revenues* 1,400 1,725.9 Incoming orders* 1,217 1,387.4 Operating result* (EBIT before one-off 3.5 35.8 effects) Group earnings after taxes 4.3 4.7 Equity* 248 222.7 Equity ratio* 20.9% 15.5% Net financial debt* 85 242.8 *Continuing operations: The Measuring & Process Technologies and Development Test Systems business units and the Premier Group, which were sold in 2005, are no longer included in continuing operations. A distinction between continuing and discontinued operations is no longer necessary in 2006. Contact: Dürr AG Günter Dielmann Corporate Communications & Investor Relations Phone: +49 (0)711 136-1785 Fax: +49 (0)711 136-1716 E-mail: corpcom@durr.com (c)DGAP 02.03.2006 ————————————————————————— language: English emitter: Dürr Aktiengesellschaft Otto-Dürr-Strasse 8 70435 Stuttgart – Zuffenhausen Deutschland phone: +49 (0)711 136-0 fax: +49 (0)711 136-1034 email: investor.relations@durr.com WWW: www.durr.com ISIN: DE0005565204 WKN: 556520 indexes: stockmarkets: Amtlicher Markt in Frankfurt (Prime Standard), Stuttgart; Freiverkehr in Berlin-Bremen, Düsseldorf, Hamburg End of News DGAP News-Service —————————————————————————