GILDEMEISTER achieves goals in 2008
Bielefeld. The financial year 2008 was the best year for GILDEMEISTER in the company’s 138-year history. We achieved our goals. Sales revenues rose by 22% to Euro 1,904.0 million (previous year: Euro 1,562.1 million). Order intake of Euro 1,882.0 million was above the previous year’s level (Euro 1,864.8 million). Profitability developed positively as planned: EBITDA reached Euro 188.9 million (previous year: Euro 158.2 million), EBIT amounted to Euro 158.1 million (previous year: Euro 125.9 million). EBT increased 52% to Euro 126.7 million (previous year: Euro 83.4 million). The group annual profit rose by 62% to Euro 81.1 million (previous year: Euro 50.1 million). Earnings per share increased to Euro 1.87 (previous year: Euro 1.16). We will propose to the annual shareholders meeting on 15 May 2009 that a higher dividend of Euro 0.40 per share will be distributed for the financial year 2008 (previous year: Euro 0.35). All figures are provisional and are subject to audit and approval of the annual accounts by the Supervisory Board.
Sales revenues of Euro 1,904.0 million (+22%) surpassed the previous year's record figure (Euro 1,562.1 million). This corresponds to an increase of Euro 341.9 million. In the fourth quarter sales revenues amounted to Euro 540.8 million and were thus 11% above the previous year’s figure (Euro 487.2 million). In the reporting year the “Machine Tools” segment achieved an increase of Euro 109.6 million (+10%). The “Services“ segment contributed Euro 232.4 million (+49%) to the increase in sales revenues; the “Solar Technology” division had a share in this of Euro 199.5 million. Domestic sales revenues rose by 14% to Euro 829.9 million; foreign sales revenues increased by 29% to Euro 1,074.1 million. The export share amounted to 56% (previous year: 53%).
Order intake reached Euro 1,882.0 million and was Euro 17.2 million or 1% higher than the previous year (Euro 1,864.8 million). Despite the increasingly difficult market environment, order intake in the first three quarters continued to develop satisfactorily. In the fourth quarter, we, too, had to accept losses caused by the international economic crisis: Order intake amounted to Euro 289.2 million (previous year’s quarter: Euro 461.1 million). For the entire year the “Machine Tools” business amounted to Euro 1,160.8 million (previous year: Euro 1,292.3 million). “Services” rose to Euro 721.0 million (previous year: Euro 572.2 million); the doubling of business in the “Solar Technology” division contributed to this with Euro 162.1 million (previous year: Euro 81.5 million). International orders increased by 2% to Euro 1,038.6 million (previous year: Euro 1,017.3 million). Domestic orders amounted to Euro 843.4 million (previous year: Euro 847.5 million). International orders accounted for 55% of orders (previous year: 55%).
On 31 December 2008 the order backlog amounted to Euro 727.4 million (31 Dec. 2007: Euro 749.4 million).
Profitability developed positively in the financial year 2008 as planned: EBITDA reached Euro 188.9 million (previous year: Euro 158.2 million), EBIT amounted to Euro 158.1 million (previous year: Euro 125.9 million). EBT increased 52% to Euro 126.7 million (previous year: Euro 83.4 million). The group annual profit rose by 62% to Euro 81.1 million (previous year: Euro 50.1 million). Earnings per share increased to Euro 1.87 (previous year: Euro 1.16). We will propose to the annual shareholders meeting that a higher dividend of Euro 0.40 per share will be distributed for the financial year 2008 (previous year: Euro 0.35). All figures are provisional and are subject to audit and approval of the annual accounts by the Supervisory Board.
The GILDEMEISTER share fluctuated throughout 2008: The share started the stock market year at a price of Euro 18.61 (2 Jan. 2008) and reached its highest value of the year of Euro 23.38 on 22 May 2008. The international financial crisis and the ensuing economic crisis had an influence in the second half of the year on the financial markets and also on the GILDMEISTER share price. The lowest value of the year was Euro 4.79 (21 Nov. 2008). The share closed on 30 December 2008 at Euro 7.85. The share is currently quoted at Euro 6.11 (10 Feb. 2008).
As at 31 December 2008, GILDEMEISTER had 6,451 employees, including 260 trainees (previous year: 5,998). Over the course of the financial year, the number of employees rose by 453. In the “Services“ segment, an increase in personnel occurred at DMG Spare Parts and a+f, as well as in Asia and Europe – in particular in eastern Europe. This enables us to meet the increase in customer requirements even better. In the “Machine Tools“ segment, additional employees were taken on due to the increased sales performance, in particular at the production locations in Shanghai, Bielefeld and Pleszew. At year-end, 3,841 employees (60%) worked for our national companies and 2,610 employees (40%) for our international companies. Personnel costs amounted to Euro 405.1 million (previous year: Euro 366.4 million). The personnel expenditure quota decreased to 20.7% (previous year: 22.9%).
The German Engineering Federation (VDMA) is forecasting a noticeable reduction in the market and the German Machine Tool Builders Association (VDW) is also expecting a worldwide decline in the machine tool business.
Even GILDEMEISTER could not avoid the downturn in the economic environment and the fall in demand for machine tools at the start of 2009. With respect to order intake, we have made a restrained start to the new financial year. Sales revenues will develop satisfactorily in the first quarter. The result will be positive. The extent and duration of the worldwide economic crisis and its effects on GILDEMEISTER cannot be planned for the entire year 2009 with sufficient certainty at the present time.
We have prepared our company for the expected development in the financial year 2009. With our global presence and innovative products, we are well-equipped for the forthcoming changes in the machine tool business. GILDEMEISTER has a good financial basis, a solid foundation and a clear strategy. The machine tools business will decline in 2009, the service business will be stable and we expect a positive development in the solar business. A high degree of flexibility allows GILDEMEISTER to react appropriately to the changing market conditions.
The Executive Board
All figures are subject to audit. The Consolidated Financial Statements were prepared in accor-dance with the International Financial Reporting Standards (IFRS), as applicable within the European Union.
On the occasion of the balance sheet press conference on 12 March 2009, GILDEMEISTER will publish detailed information on the financial year 2008 and the forecast for 2009.
Disclaimer, Forward-looking statement
Statements relating to the future:
This press release contains forward-looking statements, which are based on current estimates of the management of future developments. Such statements are based on the management's current expectations and specific assumptions. They are subject to risks, uncertainties and other factors, which could lead to the actual future circumstances, including the assets, liabilities, financial position and profit or loss of GILDEMEISTER, differing materially from or being more negative than those expressly or implicitly assumed or described in these statements. The business activities of GILDEMEISTER are subject to a series of risks and uncertainties, which may result in forward-looking statements, estimates or forecasts becoming inaccurate. Should one of these factors of uncertainty or other unforeseeable event occur, or should the assumptions on which these statements are based prove incorrect, the actual results may differ materially from the results stated, expected, anticipated, intended, planned, aimed at, estimated or projected in these statements. Forward-looking statements must not be understood as a guarantee or assurance of the future developments or events contained therein.