Demag Cranes AG Surpasses Guidance Figures for Financial Year 2006/2007 and Presents Packages of Measures for its Port Technology Segment
Düsseldorf, 24. October 2007
- Adjusted Group EBIT at EUR 94.6 million (Guidance: EUR 93 million)
- Port Technology segment: Packages of measures for mobile harbour cranes amounting to approximately EUR 15 million defined
- Port Technology Segment: Record Order Intake in the Fourth Quarter of Financial Year 2006/2007
According to preliminary figures, Demag Cranes AG has outperformed its adjusted annual forecast for financial year 2006/2007. The Group revised its guidance figures in July of this year. Preliminary figures indicate that Group EBIT at EUR 94.6 million was better than the forecast of EUR 93 million. At segment level, the figures for adjusted EBIT were also higher than forecast. The Industrial Cranes segment achieved EUR 23.6 million (Guidance: EUR 23 million), the Port Technology segment EUR 9.6 million (Guidance: EUR 9 million) and the Services segment EUR 61.4 million (Guidance: EUR 61 million). Harald J. Joos, CEO of Demag Cranes, emphasises: "In response to the unexpected challenges in the Port Technology segment, we've done our homework and have more than met our targets. We are now back on course."
Port Technology Segment: Packages of Measures for Significant Cost Cuts Presented
On 13 July 2007, the Management Board of Demag Cranes AG announced higher than expected manufacturing costs for the new Generation 5 mobile harbour cranes that led to, amongst other things, a downward adjustment of the Group earnings forecast for financial year 2006/2007. To reduce manufacturing costs long-term, the Management Board has defined five packages of measures with a positive EBIT effect of EUR 15 million in total. These measures will have been implemented by the end of the third quarter of financial year 2007/2008 and their full effect on earnings will be seen in financial year 2008/2009.
Port Technology Segment: Record Order Intake in the Fourth Quarter of Financial Year 2006/2007
In the fourth quarter of the financial year ended as at 30 September 2007, Demag Cranes AG recorded an all-time-high for order intake in its Port Technology segment. In total, order intake amounted to some EUR 117 million. This figure is approximately 50 percent above the prior-year period. Generation 5 crane models were mainly sold. Demag Crane's CEO, Joos, underscores: "The high order intake further demonstrates that the new Generation 5 cranes have been well received by our customers. In connection with the cost-reducing effects from the packages of measures introduced, we will double profitability in the Port Technology segment by the end of financial year 2007/2008."
Outlook: Further Growth in Sales and Earnings Anticipated
The Management Board of Demag Cranes AG anticipates profitable growth at Group level in financial year 2007/2008. In view of the excellent order situation, Group sales are expected to grow to between EUR 1.13 billion and EUR 1.16 billion. For adjusted EBIT, the Management Board predicts approximately EUR 110 million. As a result of the packages of measures being implemented, the Management Board anticipates profitability in the Port Technology segment to increase substantially as compared to the financial year just ended. The adjusted segment EBIT expected to range between EUR 18 million and EUR 20 million for the current financial year ending as at 30 September 2008.
About Demag Cranes
Demag Cranes AG is one of the world’s leading providers of industrial cranes, crane components, mobile harbour cranes and port automation technology. Services, in particular maintenance and refurbishment services, are another key element of the Group’s business activities. The Group is divided up into the three segments Industrial Cranes, Port Technology and Services and has the strong and established “Demag” and “Gottwald” brands. Demag Cranes sees its core expertise in the development and design of technologically advanced cranes and hoists, as well as automated transport and logistics systems in ports, 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 joint ventures. In financial year 2005/2006, 5,680 employees generated sales of some EUR 987 million. Since the end of June 2006, the Demag Cranes share (WKN: DCAG01) has been listed in the Prime Standard of the German Stock Exchange and is included in the SDAX share index.
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