Demag Cranes announces preliminary figures for fiscal year 2005/2006 - sales and earnings targets fully reached
Düsseldorf, 27. November 2006
- Rise in sales of 11.9 percent to € 986.9 million
- Adjusted EBITDA increased by 24.4 percent to € 105.6 million
- Marked improvement in profitability
- Significant reduction in net financial liabilities to € 133.3 million
- Outlook for fiscal year 2006/2007: Substantial order book and ongoing positive market environment
According to preliminary figures for fiscal year 2005/2006 Demag Cranes AG fully reached all the goals it had set itself. Consolidated sales rose by 11.9 percent to € 986.9 million compared with the same period of the previous year and were thus at the upper end of the projected target corridor of 9 to 12 percent. In addition to a favorable economic environment, and the dynamic globalization in world trade, this is attributable primarily to the success launch of new products. In particular the BRIC countries (Brazil, Russia, India, and China), as well as Eastern Europe, posted above-average growth.
At € 105.6 million, adjusted EBITDA was 24.4 percent up on the period in comparison, and was thus slightly above the targeted 18 to 24 percent rise in earnings. The EBITDA margin improved by 1.1 percentage points to 10.7 percent. Reasons for this include the impact of measures taken to push results, such as process optimization and standardization of products, modularization of components and optimization of sourcing and production. Although net income rose over-proportionately to € 22.1 million compared with last year´s figure of € 0.5 million, it is still burdened by special effects associated with, among other things, the IPO. Earnings per share translate to € 1.04.
Debts clearly reduced
Net financial liabilities have been significantly reduced from € 178.3 million to € 133.3 million over the last fiscal year. This was primarily the result of active cash management, as well as optimization of the financing structure. As such the gearing improved from 111.0 percent to 70.6 percent.
Outlook: Continuation of positive business trend expectedFor the current fiscal year the Management Board of Demag Cranes AG expects a stable economic environment and a trend to strong growth in some markets. From today’s point of view the overall positive development in demand in the three business segments Industrial Cranes, Services and Port Technology is set to continue. Given the company’s leading edge in technology, on-going cost-cutting and efficiency-boosting programs, as well as continuing growth in targeted geographic region such as Europe, Asia and the BRIC countries, the Management Board expects extremely positive trends in the years to come as well. Strong demand for capital goods in the handling field is reflected in a clear increase in the order backlog and orders being placed than in the prior year. As Harald J. Joos, the Chief Executive Officer of Demag Cranes AG underscores: ”2006 was an extremely successful year for us. The strategic focus on sustained and profitable growth is impacting, the new products are being more than well received by the market, and the order books are full. I am quite optimistic for the next few years.“
About Demag Cranes AG
The Demag Cranes Group is one of the world’s leading providers of industrial cranes and crane components, harbor cranes and port automation technology. Services, in particular maintenance and refurbishment services, are another core element of its business activities. The Group, which is divided into the Industrial Cranes, Port Technology and Services segments, has strong brands – ‘Demag’ and ‘Gottwald’. Demag Cranes believes that it is a global market leader, by virtue of its innovation and technology leadership, its excellent product and service quality and its close and long-term customer relationships. 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.