Dürr AG — Interim / Quarterly Report 2007

May 14, 2007

Interim Report January 1 to March 31, 2007

Contents

• 3 Key figures
• 5 Management report
• 17 Consolidated income statement
• 18 Consolidated balance sheet
• 19 Consolidated statement of changes in shareholders´ equity
• 20 Statement of recognized income and expense in the consolidated financial statements
• 21 Consolidated cash flow statement
• 22 Notes to the consolidated financial statements
• 26 Financial calendar
• 26 Contact

Cover photo: Balancing and Diagnostic Systems: Balancing system for power station turbines

Key figures for the Dürr Group (IFRS)

(Continuing operations)

		1st Quarter 2007	1st Quarter 2006
Incoming orders	in € m	508.3	429.9
Orders on hand (March 31)	in € m	1,006.2	840.2
Sales revenue	in € m	304.1	309.3
EBITDA before one-time expenses	in € m	7.2	4.0
EBIT before one-time expenses	in € m	3.1	-0.9
Net loss for the period	in € m	-2.1	-4.6
Cash flow from operating activities	in € m	-9.0	-27.8
Cash flow from investing activities	in € m	-6.6	19.7
Cash flow from financing activities	in € m	-13.2	4.1
Balance sheet total (March 31)	in € m	1,026.6	1,083.3
Equity (with minority interests) (March 31)	in € m	243.6	242.9
Net financial debt (March 31)	in € m	123.7	104.1
Net working capital (March 31)	in € m	155.5	166.7
Employees (March 31)		5,670	5,792
Dürr stock ISIN: DE0005565204
High1)	€	24.79	20.85
Low1)	€	20.20	17.14
Close1)	€	24.52	20.85
Number of shares (March 31)	k	15,728	15,728
Earnings per share (diluted/basic)	€	-0.13	-0.29

1) XETRA

Immaterial variances may occur in this report in the computation of sums and percentages due to rounding.

Highlights

• Incoming orders well above high Q1 2006 level •
• Sales revenue still down year on year, also due to currency factors •
• EBIT positive and improved despite lower sales revenue •
• Unchanged positive outlook for 2007 •

Management report

Economic environment

The macroeconomic data remained robust in the first quarter of 2007. However, there were signs of slower growth in the United States, where the problems in the US property market are making themselves felt. By contrast, in Europe, and especially in Germany, economic growth was stronger than expected, and also had an impact on employment. The growth in Asia remained dynamic, especially in China. Currency developments are a cause of growing concern in view of the weakness of the US dollar and the yen.

There has been little change in the structure of demand in the global automobile markets compared with a year earlier. While unit sales in the United States, Western Europe and Japan were little changed overall, the emerging markets especially witnessed, in part, strong growth. Above all, India and Eastern Europe including Russia are acquiring growing importance. These markets have attained an attractive size for automobile manufacturers in terms of absolute volumes.

Capital spending on production technology in the automobile industry should rise in 2007. There are also a number of orders for new paint shops and final assembly plants in the pipeline in the established Western markets. However, the main focus is in Asia and Eastern Europe. Demand in the modernization business is continuously growing. In view of the age of their plants many manufacturers are investing in their existing facilities to modernize them and make them more flexible.

FOCUS program

In mid-August 2005, we launched FOCUS as a Group-wide program with the aim of improving our profitability and financial structure for the long term. The main objectives were:

• to concentrate on our core business as a manufacturer of machinery and industrial equipment for the automotive industry, which will account for some 90% of Group sales revenues in 2007,
• to position ourselves optimally in our sales markets and tap the automotive market's existing growth potential,
• to expand the modernization and services business,
• to restructure the Paint and Assembly Systems division,
• to improve business processes.

The 47 FOCUS projects have been mostly completed; the remaining measures were channeled into a continuous improvement process at the beginning of 2007. Our aim here is to embed the processes and tools developed under the FOCUS program firmly in our day-to-day operations and to continue optimizing our internal processes. Thanks to the successes achieved with FOCUS and the continuous improvement process we do not need an explicit Group-wide program any more in 2007. In future, we will no longer be referring specifically to the FOCUS program in our reporting.

The central issue in connection with process optimization at the moment is the Group-wide standardization of our IT infrastructure. We have started with the introduction of an overarching ERP (Enterprise Resource Planning) system which covers all internal processes. The system will be rolled out in Germany in the second quarter. Roll-out in the United States and Mexico is planned for the second half of the year.

Business developments*

Incoming orders well up year on year

The Group's incoming orders in the first three months of 2007 were up 18.2% year on year to € 508.3 million after Dürr had already achieved growth of 33% in the first quarter of 2006 (€ 429.9 million). This was also a substantial increase compared with the fourth quarter of 2006 (€ 299.0 million).

The improvement was driven by growth of 19.9% in new orders in the Paint and Assembly Systems division; the Measuring and Process Systems division also did well with an increase of 10.3%. Viewed by region, the encouraging growth of 87.4% in Germany stands out particularly. We also won several orders in Eastern Europe, the main focus being Russia and the Czech Republic. Order intake in Asia was steady; new orders in China fell short of the very high level in the first quarter of 2006. We achieved further growth in India.

Order intake was very positive not only in Paint Systems but also in the Factory Assembly Systems and Cleaning and Filtration Systems business units, both of which had still seen a weak development last year.

Sales revenue and orders on hand

Consolidated sales came to € 304.1 million in the first quarter and were therefore just 1.7% down versus the first quarter of 2006 (€ 309.3 million). Sales revenues in Cleaning and Filtration Systems and in Factory Assembly Systems were still down year on year. The weaker US dollar compared with the first quarter of 2006 also had a negative impact on our sales figure. 60.7% of the sales revenue came from Europe, 20.9% from Asia, 14.7% from North America and 3.7% from South America and other countries. The book-to-bill ratio, that is the ratio of new orders to sales revenue, improved to 1.7 (Q1 2006: 1.4). Orders on hand amounted to € 1,006.2 million at March 31, 2007 (March 31, 2006: € 840.2 million), an increase of € 201.0 million versus the end of 2006. Order backlog has therefore improved significantly again.

More-than-proportional reduction in administrative and selling expenses

At -1.7%, the cost of sales developed in line with the lower sales revenue, so the gross margin was unchanged at 16.6%. The capacity underutilization in Cleaning and Filtration Systems and in Factory Assembly Systems had an

*Unless indicated otherwise, all figures and statements refer to the continuing operations of the Dürr Group. This interim report has been prepared in accordance with the International Financial Reporting Standards (IFRS).

impact here. An added factor was the execution of long-term paint system projects which had been taken on at poorer margins in spring 2006. On the other hand, benefits were felt from the FOCUS measures to optimize internal processes.

Since we had expanded our marketing activities in 2006, especially in Asia, selling expenses declined in the first quarter of 2007 by 6.7%. Administrative expenses were reduced significantly again by 6.8%. Research and development (R&D) expenses rose by € 0.5 million to € 5.6 million. Other operating expenses and income showed a net balance of € +2.5 million (Q1 2006: € +0.4 million). This includes proceeds from the sale of a property no longer required in Spain and the release of provisions. At € 0.1 million, the one-time expenses still incurred were small (Q1 2006: € 0.6 million).

Earnings before interest and taxes improved and positive

EBITDA (before one-time expenses) for the first quarter of 2007 amounted to € 7.2 million (Q1 2006: € 4.0 million), while the operating result (EBIT before onetime expenses) came to € 3.1 million as compared with € -0.9 million in the same quarter last year. The net interest position deteriorated by € 0.1 million to € -5.7 million owing to slightly higher average debt. Earnings after taxes of the continuing operations improved to € -2.1 million, from € -4.6 million a year earlier. This lessthan-proportional improvement compared with EBITDA and EBIT is due to a lower average tax rate than in the first quarter of 2006.

Financial position

Cash flow from operating activities improved*

Cash flow from operating activities in the first three months of 2007 improved substantially to € -9.0 million from € -27.8 million a year earlier. It is still influenced by the relatively weak revenue situation but this will probably improve significantly in the further course of the year. Additionally, the first quarter of 2007 was impacted by cash outflows for taxes and FOCUS measures (FOCUS: € 4.2 million) as well as the use of provisions. A positive factor is that, owing to the increased volume of orders, prepayments received were up € 6.8 million versus December 31, 2006 to € 133.0 million at March 31, 2007. Net working capital was reduced by € 4.3 million versus the end of 2006.

*Exchange rate effects have been eliminated in the cash flow statement. For this reason, the changes shown there can only be seen in the balance sheet to a limited extent.

Cash flow from investing activities amounted to € -6.6 million (Q1 2006: € 19.7 million). As planned, investment in intangible assets rose considerably to € 4.3 million (Q1 2006: € 0.9 million); it was mostly related to the project for Group-wide IT standardization (among other things, software licenses, capitalization of project costs). The cash inflow in the first quarter of 2006 had resulted in the main from an out-of-court arbitration settlement.

Cash flow from financing activities amounted to € -13.2 million (Q1 2006: € 4.1 million) and was largely influenced by interest paid; in the year-earlier period there had been a build-up of short-term bank liabilities.

Balance sheet and financial ratios little changed

Net financial debt at March 31, 2007 amounted to € 123.7 million as compared with € 96.5 million at the end of 2006. Financing requirements were met fully from cash and cash equivalents. Cash and cash equivalents decreased by € 28.9 million versus December 31, 2006 to € 72.6 million.

At the end of the first quarter the balance sheet total was slightly lower than at December 31, 2006 at € 1,026.6 million (December 31, 2006: € 1,040.1 million). There were no significant structural changes on either the assets side or the equity and liabilities side. The equity ratio rose to 23.7% as of March 31, 2007, from 22.4% a year earlier. This was a slight improvement versus the end of 2006 (23.6%).

Current and non-current liabilities

	March 31, 2007	March 31, 2006	Dec. 31, 2006
Amounts in € m
Financial liabilities	17.6	43.4	20.5
Corporate bond	190.6	188.6	189.8
Trade payables	307.5	269.1	303.6
of which prepayments received	133.0	105.3	126.2
Tax liabilities	24.2	21.4	25.7
Other liabilities	88.1	117.4	90.8
Total	628.0	639.9	630.4

R&D and capital expenditures

Direct expenses for research and development (R&D) recognized in the income statement for the first quarter of 2007 amounted to € 5.6 million (Q1 2006: € 5.1 million). If project-related development expenses which arise in connection with customer orders are included the figure is higher. An important project was the order from auto maker Tata of India for the construction of a LeanLine paint shop. LeanLine stands for an inexpensive plant concept with a compact layout, standardized products, and simple processes. Compared to a traditional paint shop, LeanLine entails considerably lower investment costs while still meeting the basic qualitative demands of automotive painting. Tata plans to produce extremely lowpriced automobiles at this plant. We will be continuing our development work and marketing efforts for LeanLine in the current year.

Capital expenditures for property, plant and equipment and intangible assets amounted to € 6.3 million (Q1 2006: € 2.5 million). This was invested mainly in the standardization of our IT infrastructure but also in robotics and conveyor systems as well as in curing technology and software development in painting technology.

	1st Quarter 2007	1st Quarter 2006
Amounts in € m
Paint and Assembly Systems	5.3	2.0
Measuring and Process Systems	1.0	0.5
Corporate Center	0.0	0.0
Total	6.3	2.5

Capital expenditures*

*in property, plant, and equipment, and intangible assets.

Employees

Hirings since the beginning of the year due to good order situation

At March 31, 2007, Dürr employed 5,670 persons worldwide. That is 122 employees, or 2.1%, fewer than a year ago. The main reason for the decrease was the capacity reductions in the Factory Assembly Systems and the Cleaning and Filtration Systems business units.

In Germany, we had 72 fewer employees than a year ago (-2.3%); the number of employees in the other EU countries declined by 134 (-10.7%) and in the United States by 69 (-8.7%). On the other hand, new jobs were created in Mexico (+15 employees, +22.1%) and Brazil (+6 employees, +8.1%) as well as in India (+43 employees, +29.5%) and China (+68 employees, +24.4%).

Compared with the end of 2006, the total number of employees within the Group was increased by 20 owing to the good order situation.

Employees

	March 31, 2007	March 31, 2006	Dec. 31, 2006
Paint and Assembly Systems	3,810	3,870	3,786
Measuring and Process Systems	1,818	1,884	1,821
Corporate Center	42	38	43
Total	5,670	5,792	5,650

Management changes

At its meeting on March 28, 2007 the Supervisory Board of Dürr AG appointed Ralph Heuwing as a full member of the Board of Management with effect from May 14, 2007. Ralph Heuwing is replacing Martin Hollenhorst as Chief Financial Officer. Martin Hollenhorst is leaving the company at his own wish at the end of the Annual Shareholders' Meeting on May 18, 2007.

Overview of the divisions

Paint and Assembly Systems

	1st Quarter 2007	1st Quarter 2006
Amounts in € m
Incoming orders	424.9	354.3
Sales revenues	244.6	244.2
EBITDA	6.2	5.9
EBIT	3.5	3.3
Employees (March 31)	3,810	3,870

Incoming orders at Paint and Assembly Systems in the first three months of 2007 rose strongly again to € 424.9 million (Q1 2006: € 354.3 million). Large paint system orders were received for instance from the Czech Republic, Russia and India. Investment activity in the United States, on the other hand, was very restrained. However, the big three US automobile manufacturers are investing outside the United States; we won a large system order in Mexico for instance. The system orders ensure good capacity utilization in Paint Systems and Environmental and Energy Systems, particularly in Germany and Asia. Encouragingly, Factory Assembly Systems also booked significantly more orders. Operating earnings (EBIT) were level with the year-earlier period on unchanged sales revenues. An added factor was the execution of long-term paint system projects which had been taken on in spring 2006 at poorer margins.

Measuring and Process Systems

	1st Quarter 2007	1st Quarter 2006
Amounts in € m
Incoming orders	83.4	75.6
Sales revenues	59.5	65.1
EBITDA	1.0	-1.5
EBIT	-0.2	-2.7
Employees (March 31)	1,818	1,884

Incoming orders at Measuring and Process Systems in the first quarter of 2007 were up 10.3% year on year. This was driven entirely by growth in the Cleaning and Filtration Systems business unit, which was largely on the back of the good market acceptance of the newly launched EcoLution and EcoBase product lines. Order intake in the Balancing and Diagnostic Systems business unit was stable.

The decline in sales revenues at Measuring and Process Systems is attributable to the lower backlog of orders in the Cleaning and Filtration Systems business unit at the end of 2006. Operating earnings were improved versus the first quarter of 2006 both in the Cleaning and Filtration Systems and the Balancing and Diagnostic Systems business units. This was mainly due to the improvement in internal processes and the optimized product mix.

Corporate Center

Corporate Center (Dürr AG) EBIT for the first three months of 2007 came to € -0.3 million as compared with € -2.0 million in the year-earlier period, with the improvements achieved through FOCUS making themselves felt. The result for the first quarter benefited above all from lower material costs.

Opportunities and risks

In the first quarter of 2007 we were exposed by and large to the usual businessspecific risks which we discussed in detail in our Annual Report for 2006. This includes risks such as pricing pressure in the automobile industry, differing regional demand trends and risks in order execution. Since a number of automobile manufacturers did not place orders originally planned for the fourth quarter of 2006 until the first quarter of 2007, our sales revenues are currently still lagging behind target. However, we will probably be able to recoup this in the further course of the year. Another development which is adversely affecting our sales figures at the moment is the US dollar's weakness against the euro. However, even if the US dollar remains weak this should have an only marginal impact, if at all, on our earnings situation owing to our cost structure.

The business opportunities, too, are also very largely the same as we discussed in our Annual Report for 2006. Above all, there is the growing demand in Eastern Europe and the expansion of our services and revamp business, where we see good potential as our production technology is in widespread use. Added stimulus for our business should come from the growing model diversity in the automobile industry, the increasing demand for environmentally compatible production processes and the closer integration of suppliers into the value chain in the automotive industry.

Disclosures on related parties

Dr.-Ing. E. h. Heinz Dürr is Chairman of the Supervisory Board of Dürr AG. Dr.-Ing. E. h. Heinz Dürr is also a member of the Supervisory Board of Landesbank Baden-Württemberg. For the reimbursement of office and traveling expenses in connection with the Supervisory Board activities as well as the reimbursement of costs for the Dürr's Berlin office expenses in the amount of € 62 thousand were incurred in the first quarter of 2007 in relation to Heinz Dürr GmbH, Berlin, in which Dr.-Ing. E. h. Heinz Dürr is managing director. In addition, Dr.-Ing. E. h. Heinz Dürr received benefits of € 91 thousand under the pension commitment (of April 2, 1978, with supplement of December 21, 1988) relating to his former management activities.

Joachim Schielke is a member of the Supervisory Board of Dürr AG, a member of the Board of Managing Directors of Landesbank Baden-Württemberg and Chairman of the Board of Managing Directors of Baden-Württembergische Bank. As of the reporting date, there was a credit balance of € 22,325 thousand with Baden-Württembergische Bank arising from regular business transactions. Interest expenses of € 86 thousand resulted from transactions with Baden-Württembergische Bank in the reporting period. Guarantees issued on Dürr's behalf by Baden-Württembergische Bank amounted to € 16,613 thousand as of the reporting date.

The Board of Management confirms that all the aforesaid transactions with related parties were conducted at terms and conditions which would have been extended to the Group by third parties.

Outlook

We expect that the Group's order intake in 2007 will at least match the high level achieved in 2006. This is supported by the projects announced or planned by many automobile manufacturers. The modernization and services business should continue to grow in 2007.

From today's vantage point, consolidated sales will probably rise by 5 to 10%. We expect a significant earnings improvement in 2007. This is based on higher sales revenues, an improved gross margin thanks to the successes with FO-CUS and little changed administrative and selling expenses. Our net interest position will not improve in 2007 since this had benefited from extraordinary income in 2006. The Cleaning and Filtration Systems and Factory Assembly

Systems business units, which were loss-making in 2006, and the US business present earnings improvement potential for 2007 in the lower doubledigit millions.

We expect a positive cash flow from operating activities in 2007. We expect net working capital to decline slightly despite rising sales. We will continue to keep a close focus on improving net working capital management. We also expect a positive free cash flow, so net financial debt should be reduced and liquidity improved.

We expect a further earnings improvement in 2008. This is supported by the fact that, given the good project situation, we can be more selective in taking on orders. Our target return for 2008 is unchanged at 4% based on earnings before taxes and 5% at the operating earnings level (EBIT before one-offs). Based on the new Group structure the pro forma EBITDA target return is 6.5%; previously, we had targeted up to 8%.

Treasury stock and capital changes

Dürr AG owns no treasury stock. There was no change in the company's capital in the reporting period.

Development of Dürr stock

The positive performance of the equity markets continued on the whole in the first quarter of 2007. The Dürr stock did particularly well against this cheerful backdrop. While the SDAX rose 7.9%, our shares gained 16.8%. This exceptionally good performance is likely to have been driven by a number of aspects. Firstly, the Dürr stock had lagged the general market trend in 2006. Secondly, the Dürr stock was included in the SDAX in January, which also led to stronger interest in the media and among investors. And, thirdly, we achieved the targets we had announced for 2006, and even exceeded market expectations in some cases.

Events subsequent to the reporting date

In April 2007 the Dürr family increased its position as the largest shareholder of Dürr AG. Heinz Dürr GmbH and the foundation Heinz und Heide Dürr Stiftung, Berlin, together now hold 44.2% of the capital of Dürr AG. Further, the pool agreement which had existed since 2001 between Heinz Dürr GmbH, the Heinz und Heide Dürr Stiftung, BWK GmbH Unternehmensbeteiligungsgesellschaft and Süd-Kapitalbeteiligungs-Gesellschaft mbH, was annulled by mutual agreement. Süd-Kapitalbeteiligungs-Gesellschaft mbH currently holds 10% of Dürr's capital and intends to hold at least 5% in the future.

Stuttgart, May 10, 2007

Dürr Aktiengesellschaft

The Board of Management

Consolidated income statement

	1st Quarter 2007	1st Quarter 2006
Amounts in € k
Sales revenues	304,065	309,285
Cost of sales	-253,565	-258,028
Gross profit on sales	50,500	51,257
Selling expenses	-22,944	-24,579
General and administrative expenses	-21,312	-22,879
Research and development costs	-5,630	-5,062
Other operating income and expenses	2,461	369
	3,075	-894
Restructuring expense / onerous contracts	-106	-601
Earnings before investment income, interest and similar	2,969	-1,495
income, interest and similar expenses, and income taxes
Result of associates	324	-94
Interest and similar income	656	851
Interest and similar expenses	-6,330	-6,415
Earnings before taxes of continuing operations	-2,381	-7,153
Income taxes	318	2,553
Earnings from continuing operations	-2,063	-4,600
Earnings from discontinued operations	81	162
Consolidated loss for the period	-1,982	-4,438
Profit/loss share of minority interests
Continuing operations	4	-11
Discontinued operations	-	3
Dürr Group	4	-8
Profit/loss share of shareholders of Dürr Aktiengesellschaft
Continuing operations	-2,067	-4,589
Discontinued operations	81	159
Dürr Group	-1,986	-4,430
Earnings per share in € (basic and diluted)
Continuing operations	-0.13	-0.29
Discontinued operations	0.00	0.01
Dürr Group	-0.13	-0.28

Consolidated balance sheet

of Dürr Aktiengesellschaft, Stuttgart, as of March 31, 2007

	March 31, 2007	March 31, 2006	Dec. 31, 2006
Amounts in € k
Assets
Goodwill	262,097	266,472	262,296
Other intangible assets	25,168	19,860	22,367
Property, plant and equipment	105,276	120,605	106,539
Investment property	13,339	11,494	13,269
Investment in associates	13,272	12,610	12,981
Other financial assets	4,990	5,506	5,221
Trade receivables	2,076	-	1,701
Income tax receivables	64	-	319
Other receivables and other assets	3,001	-	2,727
Deferred taxes	18,965	47,518	19,151
Prepaid expenses	560	176	573
Non-current assets	448,808	484,241	447,144
Inventories and prepayments	54,200	49,233	50,664
Trade receivables	408,365	392,173	408,646
Income tax receivables	7,765	7,684	7,370
Other receivables and other assets	29,615	24,913	21,707
Cash and cash equivalents	72,583	120,004	101,482
Prepaid expenses	4,303	5,045	1,924
	576,831	599,052	591,793
Assets of a disposal group classified as held for sale	996	-	1,129
Current assets	577,827	599,052	592,922
Total assets Dürr Group	1,026,635	1,083,293	1,040,066
Equity and liabilities
Subscribed capital	40,264	40,264	40,264
Capital reserve	160,459	160,459	160,459
Revenue reserves	71,035	61,537	73,021
Other comprehensive income	-29,428	-20,663	-29,257
Amounts recorded directly in equity from assets of a disposal group
classified as held for sale	-489	-	-495
Equity without minority interests	241,841	241,597	243,992
Minority interests	1,712	1,283	1,708
Equity with minority interests	243,553	242,880	245,700
Provisions for pension obligations	60,578	68,253	60,739
Other provisions	7,595	9,832	7,319
Bond	190,566	188,630	189,840
Other financial liabilities	10,114	12,080	10,639
Income tax liabilities	12,597	454	12,585
Other liabilities	13,428	-	13,343
Deferred taxes	25,286	46,757	25,725
Deferred income	1,418	1,569	1,485
Non-current liabilities	321,582	327,575	321,675
Other provisions	58,099	73,042	66,197
Trade payables	307,502	269,097	303,575
Financial liabilities	7,477	31,348	9,869
Income tax liabilities	11,641	20,962	13,070
Other liabilities	74,659	117,415	77,460
Deferred income	2,122	974	2,520
Current liabilities	461,500	512,838	472,691
Total equity and liabilities Dürr Group	1,026,635	1,083,293	1,040,066

Consolidated statement of changes in shareholders´ equity

	Subscribed capital	Capital reserve	Revenue reserves	Accumula ted other compre hensive income	Amounts resulting from assets held for sale	Equity without minority interests	Minority interests	Equity with minority interests
Amounts in € k
January 1, 2006	40,264	160,459	65,967	-20,140	-	246,550	1,517	248,067
Other changes	-	-	-	-	-	-	-223	-223
Accumulated other compre hensive income	-	-	-	-523	-	-523	-3	-526
Profit/loss from continuing operations	-	-	-4,589	-	-	-4,589	-11	-4,600
Profit/loss from discontinued operations	-	-	159	-	-	159	3	162
March 31, 2006	40,264	160,459	61,537	-20,663	-	241,597	1,283	242,880
January 1, 2007	40,264	160,459	73,021	-29,257	-495	243,992	1,708	245,700
Accumulated other compre hensive income	-	-	-	-171	6	-165	-	-165
Profit/loss from continuing operations	-	-	-2,067	-	-	-2,067	4	-2,063
Profit/loss from discontinued operations	-	-	81	-	-	81	-	81
March 31, 2007	40,264	160,459	71,035	-29,428	-489	241,841	1,712	243,553

Statement of recognized income and expense in the consolidated financial statements

	1st Quarter 2007	1st Quarter 2006
Amounts in € k
Changes in fair value of financial instruments used for hedging purposes recorded in equity	1,241	998
Adjustment item for currency translation of foreign subsidiaries	-915	-1,127
Amounts recorded directly in equity from assets of a disposal group classified as held for sale	6	-
Deferred taxes on revaluations recognized directly in equity	-497	-397
Revaluations recognized directly in equity	-165	-526
of which attributable to minority interests	-	-
Loss after tax	-1,982	-4,438
of which attributable to minority interests	4	-
Total loss for the period and revaluations recognized directly in equity in the period	-2,147	-4,964
of which attributable to minority interests	4	-

Consolidated cash flow statement

	1st Quarter 2007	1st Quarter 2006
Amounts in € k
Earnings before interest and taxes	3,293	-1,589
Income taxes paid	-1,956	-6,908
Result of associates	-324	94
Amortization and depreciation of non-current assets	4,149	4,867
Net gain on the disposal of non-current assets	-1,169	-542
Non-cash expenses and income	129	-703
Changes in operating assets and liabilities
Inventories	-3,698	-5,924
Trade receivables	-629	84,106
Other receivables and assets	-6,747	1,206
Provisions	-5,860	-7,880
Trade payables	8,599	-77,761
Other liabilities (other than bank)	-2,699	-15,870
Other assets and liabilitities	-2,099	-883
Cash flow from operating activities of continuing operations	-9,011	-27,787
Cash flow from operating activities of discontinued operations	-	1,379
Cash flow from operating activities	-9,011	-26,408
Purchase of intangible assets	-4,327	-911
Purchase of property, plant and equipment	-1,987	-1,547
Purchase of other financial assets	-48	-534
Cash received from out-of-court agreement	-	20,000
Proceeds from the sale of non-current assets	1,470	234
Disposal of discontinued operations, net of cash disposed of	-2,184	1,878
Interest received	487	604
Cash flow from investing activities of continuing operations	-6,589	19,724
Cash flow from investing activities of discontinued operations	-	-3
Cash flow from investing activities	-6,589	19,721
Change in current bank liabilities	-2,647	13,819
Payment of finance lease liabilities	-221	-238
Change in financial liabilities to associates	13	-53
Internal financing	-	1,226
Interest paid	-10,367	-10,656
Cash flow from financing activities of continuing operations	-13,222	4,098
Cash flow from financing activities of discontinued operations	-	-1,243
Cash flow from financing activities	-13,222	2,855
Effects of exchange rate changes	-77	-1,021
Change in cash and cash equivalents	-28,899	-4,853
Cash and cash equivalents
At the beginning of the period	101,482	124,857
At the end of the period	72,583	120,004

Notes to the consolidated financial statements January 1 to March 31, 2007

1. Summary of significant accounting policies

The Company

Dürr Aktiengesellschaft ("Dürr AG" or the "Company") is headquartered at Otto-Dürr-Strasse 8 in 70435 Stuttgart, Germany. Dürr AG and its subsidiaries ("Dürr" or the "Group") are a worldwide leading supplier of plants, systems and services for automobile production. The offering covers all the main production and assembly stages of a vehicle. As a system supplier, Dürr designs and constructs paint shops and final assembly plants. Dürr also supplies cleaning systems, filtration systems and balancing machines for the manufacture of engines, transmission and vehicle components. Dürr´s main customers include automotive manufacturers and suppliers around the world.

The consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU as of the balance sheet date, and the additional requirements of German commercial law pursuant to Sec. 315a (1) HGB ("Handelsgesetzbuch": German Commercial Code). The consolidated financial statements are in line with all IFRSs that have to be adopted by the balance sheet date.

The accounting policies used generally correspond to the methods applied in the consolidated financial statements of December 31, 2006; we refer the reader to our 2006 annual report.

With regard to the preparation of consolidated financial statements for interim reporting in accordance with IAS 34 "Interim Financial Reporting" the Management Board has to make estimates and judgements, which influence the application of accounting policies within the Company and the reporting of assets and liabilities as well as income and expenses. The actual amounts can differ from these estimates.

Income that is recorded during the reporting period for seasonal reasons, due to cyclical developments, or only occasionally is not cut off in the consolidated interim financial statements. Expenses that are incurred irregularly during the reporting period have been cut off in those cases where they would also be cut off at yearend.

The income taxes were determined on the basis of an estimated average annual effective income tax rate.

The consolidated financial statements are prepared in thousands of euros (€ k), unless stated otherwise.

2. Consolidated group

Besides Dürr AG, the consolidated financial statements as of March 31, 2007, contain all domestic and foreign entities which Dürr AG can control, directly or indirectly (control concept). The entities are included in the consolidated financial statements from the date on which the possibility of control was obtained.

Besides Dürr AG as parent company, the consolidated group contains the entities listed below:

	March 31, 2007	Dec. 31, 2006
Number of fully consolidated entities
Germany	11	11
Other countries	40	39
	51	50

	March 31, 2007	Dec. 31, 2006
Number of entities accounted for at equity
Germany	0	0
Other countries	4	4
	4	4

The consolidated financial statements contain one entity (December 31, 2006: one) in which minority shareholders hold interests. An associated entity was reclassified during fiscal year 2006 and has since then been reported in the position "Assets held for sale".

As of January 31, 2007, Dürr Systems Limited Sirketi in Istanbul, Turkey, was founded. ˛

3. Discontinued operations

Effective March 10, 2006, SRH Systems Ltd., Worcester, Great Britain - which was part of the Development Test Systems (DTS) business unit - was sold to Horiba, Kyoto, Japan. DTS formed part of the discontinued operations. Furthermore, subsequent effects of the divestments made in 2005 of the DTS, Services, and Measuring and Process Technologies (MPT) business units were included in the consolidated financial statements of the first quarter of 2006. The consolidated financial statements for the first quarter of fiscal year 2007 also include subsequent effects of the sold Services business unit, which had a positive impact on net income of € 81 thousand.

4. Earnings per share

Earnings per share are determined pursuant to IAS 33 "Earnings per Share".

If there are dilutive effects present, two different ratios for earnings per share must be disclosed. The ratio "Earnings per share (basic)" does not take account of dilutive effects; the earnings share of the shareholders of Dürr Aktiengesellschaft are divided by the weighted average number of shares outstanding. The ratio "Earnings per share (diluted)" accounts not only for the shares outstanding, but also for shares potentially available on the basis of options.

The calculation is presented below. In the periods to March 31, 2007 and 2006 there were no dilutive effects as no new option rights were issued and all existing option rights have expired.

		1st Quarter- 2007	1st Quarter 2006
Profit/loss attributable to shareholders of Dürr Aktiengesellschaft	in € k	-1,986	-4,430
of which continuing operations	in € k	-2,067	-4,589
of which discontinued operations	in € k	81	159
Number of shares outstanding (weighted average)	in k	15,728.0	15,728.0
Earnings per share (basic and diluted)	in €	-0.13	-0.28
of which continuing operations	in €	-0.13	-0.29
of which discontinued operations	in €	0.00	0.01

5. Liabilities from restructuring measures

Liabilities from restructuring measures have decreased in comparison with December 31, 2006 by € 4,022 thousand to € 15,354 thousand. The decrease is mainly due to utilization of liabilities formed in prior periods.

Expenses from restructuring measures amount to € 106 thousand as of March 31, 2007 (March 31, 2006: € 601 thousand).

6. Segment reporting

The primary reporting is based on the divisions of the Group. The Dürr Group is comprised of a management holding and two divisions differentiated by product and performance spectrum that each have global responsibility for their products and results.

The Corporate Center mainly consists of Dürr AG.

January 1 to March 31, 2007		Paint and Assembly Systems	Measu ring and Process Systems	Corporate Center	Consoli dation	Con tinuing operations	Discon tinued operations	Total divisions
External sales revenues	in € k	244,569	59,496	-	-	304,065	-	304,065
Sales revenues with other divisions	in € k	97	578	-	-675	-	-	-
Total sales revenues	in € k	244,666	60,074	-	-675	304,065	-	304,065
Earnings before investment income, interest, and taxes	in € k	3,477	-229	-297	18	2.969	81	3,050
Employees (as of March 31)		3,810	1,818	42	-	5,670	-	5,670

January 1 to March 31, 2006		Paint and Assembly Systems	Measu ring and Process Systems	Corporate Center	Consoli dation	Con tinuing operations	Discon tinued operations	Total divisions
External sales revenues	in € k	244,160	65,125	-	-	309,285	143	309,428
Sales revenues with other divisions	in € k	90	309	-	-399	-	-	-
Total sales revenues	in € k	244,250	65,434	-	-399	309,285	143	309,428
Earnings before investment income, interest, and taxes	in € k	3,277	-2,711	-1,977	-84	-1,495	-227	-1,722
Employees (as of March 31)		3,870	1,884	38	-	5,792	-	5,792

7. Contingent liabilities and other financial obligations

There has been no material change in contingent liabilities and in other financial obligations since December 31, 2006.

Financial calendar

May 18, 2007 Annual shareholders´ meeting, Stuttgart August 9, 2007 Interim report on the first half 2007 November 15, 2007 Interim report on the first nine months of 2007

Contact

Please contact us for Dürr AG further information: Günter Dielmann

Corporate Communications & Investor Relations Otto-Dürr-Strasse 8 70435 Stuttgart Phone: +49 711 136-1785 Fax: +49 711 136-1034 corpcom@durr.com investor.relations@durr.com

www.durr.com

This interim report is the English translation of the German original.

This interim report includes forward-looking statements about future developments. As is the case for any business activity conducted in a global environment, such forward-looking statements are always subject to uncertainty. Our information is based on the conviction and assumptions of the Board of Management of Dürr AG, as developed from the information currently available. However, the following factors may affect the success of our strategic and operating measures: geopolitical risks, changes in general economic conditions (especially a prolonged recession in Europe or North America), exchange rate fluctuations and changes in interest rates, new products launched by competitors, and a lack of customer acceptance for new Dürr products or services, including growing competitive pressure. Should any of these factors or other imponderable circumstances arise, or should the assumptions underlying the forward-looking statements prove incorrect, actual results may differ from those projected. Dürr AG undertakes no obligation to provide continuous updates of forward-looking statements and information. Such statements and information are based upon the circumstances as of the date of their publication.