Demag Cranes AG Continues to Show Profitable Growth in Second Quarter
Düsseldorf, 15. May 2007
- Significant increase in order intake, driven by strong demand
- Bottlenecks in global supply markets dampen sales growth
- Industrial Cranes segment: notably improved profitability
- Port Technology segment: EBIT affected by supply bottlenecks
- Services segment: on-going high demand for spare parts and refurbishments
- Outlook: forecast for sales and earnings confirmed
The Demag Cranes Group continues to show profitable growth in the second quarter of financial year 2006/2007. Thanks to the on-going high demand for cranes, crane components and services, order intake increased significantly by 25.3 percent to EUR 321.1 million. The order book for the period under report was up by 26.8 percent at EUR 402.6 million. In some cases, bottlenecks in global supply markets, reflecting the very high demand in the mechanical and plant engineering sector, have resulted in delays in production and order deliveries. As a consequence, sales growth was dampened, climbing only by 3.4 percent to EUR 255.0 million compared to the prior-year period. A set of measures has been introduced to increase supplier integration and flexibility.
EBIT Margin Improved Once Again
In the second quarter of financial year 2006/2007, the Group achieved adjusted earnings before interest, taxes as well as depreciation and amortisation (EBITDA) of EUR 28.4 million, which corresponds to a
Industrial Cranes Segment: Notably Improved Profitability
Compared to the prior-year period, the order intake of the Industrial Cranes segment surged 36.5 percent to EUR 171.8 million. In addition to the keen demand for standard and process as well as drives, this extraordinarily high order intake was partially due to a large order of ov EUR 29.1 million received outside the segment’s core business. This order was awarded un agency agreement still existing with a former sister company and is expected to generate a to low gross profit. Not including this order, the segment’s order intake still grew by a very satisfactory 13.3 percent. Sales were up slightly by 1.2 percent at
Port Technology Segment: Impact on Earnings due to Supply Bottlenecks
In the second quarter of financial year 2006/2007, the new mobile harbour cranes of Generation 5 continue to be the main drivers behind the positive order intake in the Port Technology segment. Benefiting from a favourable project situation, order intake increased by 8.7 percent compared to the same period of financial year 2005/2006, reaching EUR 65.1 million. At EUR 64.4 million, sales were up by EUR 1.4 million (2.2 percent) in comparison with the same period in financial year 2005/2006. This slower-than-expected sales development was mainly due to supply bottlenecks and, in some cases, to delayed deliveries and call-orders from a number of long-term agreements. Adjusted EBIT in the period under report was 43.4 percent or
Services Segment: On-Going Strong Demand for Spare Parts and Refurbishments
As a result of the high level of industrial activity, the highly favourable trend of this segment continued in the second quarter of financial year 2006/2007. Order intake at EUR 84.2 million was up a remarkable
Half-Year Figures for Financial Year 2006/2007: All-in-All a Positive Mid-Term Result
For the first six months of financial year 2006/2007, the Management Board can look back on a positive mid-term result. Thanks to the on-going keen demand, the total Group order intake ncreased in total by
Outlook: Targets for Financial Year 2006/2007 Confirmed
The Management Board of
About Demag Cranes:
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.
Demag Cranes. We Can Handle It.