Demag Cranes Significantly Increases Revenue and Profits in the First Quarter of Financial Year 2007/2008
Düsseldorf, 30. January 2008
- Group order intake up by 7.5 percent
- Group revenue 20.0 percent higher
- Adjusted Group EBIT boosted by 43.1 percent
- Guidance for financial year based on conservative estimate confirmed
Demag Cranes AG has started well in the new financial year 2007/2008. In a year-on-year comparison, revenue and earnings figures for the first quarter (1 October to 31 December 2007) improved substantially thanks to a sound order situation. Harald J. Joos, CEO of Demag Cranes AG emphasises: “We are very pleased with the performance in the first quarter. Demand for our products remains at a high level. This is an excellent basis for profitable growth in the next quarters.”
Order Situation Continues To Be Positive
Order intake and order book in the Group continue to develop well in the first quarter of financial year 2007/2008. Compared to the first quarter of the prior year, order intake went up solely thanks to organic growth by 7.5 percent from EUR 274.4 million to EUR 295.0 million. In a year-on-year comparison, the order book improved by 27.4 percent to EUR 430.1 million in the first quarter. In the Industrial Cranes segment, order intake was up 12.0 percent to EUR 146.2 million – this increase was mainly attributable to the demand for Process Cranes. Compared to the prior-year balance sheet date (31 December 2006), the order book soared by EUR 72.9 million to EUR 254.7 million, which equals an order volume of more than six average months of revenue. In the Port Technology segment, order intake dropped slightly as anticipated in the period under report by 3.9 percent to EUR 66.1 million as compared to the first quarter of 2006/2007. At EUR 127.7 million, the order book was up by 12.5 percent over the previous year. The Services segment continued to see a positive trend with order intake growing by 10.3 percent to EUR 82.7 million. Spare parts business and refurbishment services contributed to this satisfactory development. At EUR 47.6 million, the order book was 12.7 percent higher than the prior-year's figure.
Group Revenue Grows by 20.0 Percent
Group revenue rose by 20.0 percent to EUR 291.1 million in the first quarter of financial year 2007/2008.
The Industrial Cranes segment contributed substantially to this figure with an increase in revenue of 27.2 percent to EUR 141.8 million with all product lines recording significant growth. Revenue in the Port Technology segment at EUR 67.0 million was 9.9 percent higher in a quarterly year-on-year comparison. This positive development is mainly due to high demand for Mobile Harbour Cranes. In the Services segment, revenue grew by 17.4 percent compared to the prior-year quarter to EUR 82.3 million, the main drivers being the spare parts business and refurbishment services.
Adjusted Group EBIT Soars by 43.1 Percent
Adjusted Group earnings before interest and income tax (EBIT) shot up by 43.1 percent to EUR 29.9 million. This was mainly due to the increase in earnings in the Industrial Cranes segment. In a quarterly year-on-year comparison, adjusted EBIT at EUR 9.5 million was 90.3 percent higher. This growth was especially driven by the positive results in the crane component and Standard Crane product lines. At EUR 2.9 million, adjusted EBIT of the Port Technology segment improved slightly by 3.7 percent. The EBIT margin rose from 3.5 percent in financial year 2006/2007 to 4.3 percent in the first quarter of 2007/2008. This was largely due to the scheduled implementation of the packages of measures designed to cut manufacturing costs. For the full financial year 2007/2008, the EBIT margin is expected to improve to about six percent; this is double the figure reported at the end of the previous financial year. In the Services segment, adjusted EBIT was boosted significantly by 42.4 percent to EUR 19.0 million. This increase was mainly attributable to spare parts business and refurbishment services.
Guidance for Financial Year Based on Conservative Estimate Confirmed
In view of the very volatile conditions on the capital market, the Management Board of Demag Cranes AG has adopted a conservative stance with regard to the overall outlook for financial year 2007/2008. Accordingly, the Management Board has confirmed its forecast for Group revenue in 2007/2008 to be in the range of EUR 1.13 billion to EUR 1.16 billion and for adjusted EBIT to be around EUR 110.0 million. As Demag Cranes CEO, Joos underscores: “Based on the excellent development in the first quarter and the stable growth trends, we believe we are on the very safe side with our full-year guidance."
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 port automation technology. Services, especially for the ongoing maintenance and refurbishment of products, are core elements of our service portfolio. 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, representative offices and a joint venture. In financial year 2006/2007, the Company with its 5,813 employees generated revenue of around EUR 1.080 million. The Demag Cranes share (WKN:DCAG01) has been listed since the end of June 2006 in the Prime Standard of the Frankfurt Stock Exchange and is a member of the SDAX index.
Demag Cranes. We Can Handle It.