Demag Cranes Statement on Recent Media Reports
Düsseldorf, 08. October 2010
- Receipt of highly preliminary and conditional indications of interest confirmed
- Management Board pursuing its standalone strategy and believes Group is well-positioned for the future
In response to the most recent reports in the media about alleged takeover plans by competitors, the Management Board of Demag Cranes AG comments as follows:
Demag Cranes has recently received highly preliminary and conditional indications of interest from foreign companies. The Management Board of Demag Cranes AG has examined these unsolicited indications of interest and has reached a unanimous decision with the Supervisory Board that further discussions with the relevant parties are not in the interest of the Company or its stakeholders. Regardless of that, discussions on future developments in our industry have taken place in a general context in the past.
The Management Board of Demag Cranes AG wishes to underscore once again the excellent position of the Company as an autonomous entity to meet the challenges of the future: Demag Cranes is the world market leader in the field of mobile harbour cranes and one of the leading manufacturers of industrial cranes worldwide. In addition, Demag Cranes is the leading and most profitable service supplier in the industry with its installed based of more than 660,000 electrical cranes and hoists. With its strong Demag and Gottwald brands, a sound capital structure as well as technological and innovative leadership, Demag Cranes, as an autonomous Company, is very well-positioned to reap above-average benefits from expected dynamic developments in its industry.
Demag Cranes is pursuing its own clear standalone strategy, which is based on expanding its business in emerging markets by introducing new product lines and by benefiting from significant growth in the highly profitable service business. The Demag Cranes Group’s sound financial position may create opportunities to turn competitors’ possible financial problems to its advantage and participate more actively in the process of industry consolidation than in previous years. The emerging markets are expected to be the focus of these potential activities.
About Demag Cranes AG
The Demag Cranes Group is one of the world’s leading suppliers of industrial cranes and crane components, harbour cranes and terminal automation technology. Services, in particular maintenance and refurbishment, are another key element of the Group’s business activities. The Group is divided into the business segments Industrial Cranes, Port Technology and Services and has strong and well-established Demag and Gottwald brands. Demag Cranes sees its core competence in the development and construction of technically sophisticated cranes and hoists as well as automated transport and logistics systems in ports and terminals, the provision of services for these products and the manufacture of high-quality components.
As a global supplier, Demag Cranes manufactures in 16 countries on five continents and operates a worldwide sales and service network that is present in over 60 countries through its subsidiaries, agencies and a joint venture. In financial year 2008/2009, the Group, with its 5,934 employees, generated revenue of EUR 1,047.6 million. Since the end of June 2006, the Demag Cranes share (WKN: DCAG01) has been listed in the Prime Standard of the Frankfurt Stock Exchange and is traded on various indices including the MDAX®.
Demag Cranes. We Can Handle It.
Conditions for forward-looking statements
This press release contains forward-looking statements relating to the business, financial performance and earnings of Terex Material Handling & Port Solutions AG and its subsidiaries and associates. Forward-looking statements are based on current plans, estimates, projections and expectations and are therefore subject to risks and uncertainties, most of which are difficult to estimate and which in general are beyond the control of Terex Material Handling & Port Solutions AG. Consequently, actual developments as well as actual earnings and performance may differ materially from those which are explicitly or implicitly assumed in the forward-looking statements. Terex Material Handling & Port Solutions AG does not intend or accept any obligation to publish updates of these forward-looking statements.