GILDEMEISTER continues growth trend in the 2nd quarter
Bielefeld . The worldwide demand for machine tools is experiencing dynamic growth. GILDEMEISTER continued its growth trend also in the second quarter: It was possible to increase order intake, sales revenues and income according to plan. Overall, at the end of the first half year, order intake reached € 971.6 million (+49%) (previous year: € 651.5 million). Sales revenues of € 774.6 million (+46%) surpassed those of the comparable previous year. Profitability likewise improved significantly: EBITDA amounted to € 47.6 million (previous year: € 4.7 million), EBIT rose to € 32.5 million (previous year: € –9.3 million). EBT amounted to € 2.1 million (previous year: € –26.4 million). As of 30 June 2011, the group reports earnings after tax of € 1.5 million (previous year: € –19.0 million).
GILDEMEISTER is assuming that this positive growth will continue in the second half of the year. We are expecting particular stimuli to come from the EMO 2011 (19–24 September) in Hanover, the most important trade fair worldwide for machine tools. Through the intense cooperation with Mori Seiki, we have improved our presence in Asia and in the USA sustainably. With the proceeds from the capital increases, we have reduced our financial obligations significantly, which will have a positive effect on business development in the future.
Financial year 2011 is a transitional year. We plan – following the economic crisis – to return to a profitable growth path. From now on, due to the good progress in the first six months, we want to achieve order intake of over € 1.8 billion for the whole year. Based on our high order backlog and the expected “EMO effect“, we are planning to increase sales revenues to more than € 1.6 billion. For the whole year we are planning clear growth in EBIT, EBT and in the annual profit. We are planning to pay a dividend for financial year 2011.
Sales revenues in the second quarter reached € 397.2 million (+40% on the previous year’s quarter: € 284.5 million). As of the end of the first half year, sales revenues rose overall to € 774.6 million and were thus 46% above the previous year’s level (€ 528.9 million). International sales revenues rose by 56% to € 502.7 million; national sales revenues increased by 32% to € 271.9 million. The export share amounted to 65% (previous year: 61%).
In the second quarter, order intake rose by 51% to € 525.7 million (previous year’s quarter: € 349.2 million). In our “Machine Tools” core business we were able to increase order intake markedly by 60% to € 338.2 million (previous year’s quarter: € 211.5 million). In the first half year order intake amounted to € 971.6 million (+49%); it was thus € 320.1 million above the previous year’s period (€ 651.5 million). Domestic orders rose by 52% to € 376.8 million (previous year: € 247.4 million). International orders grew by 47% to € 594.8 million (previous year: € 404.1 million). International orders accounted for 61% of orders (previous year: 62%).
On 30 June 2011 the order backlog within the group amounted to € 769.1 million (+8% on the previous year’s date).
The GILDEMEISTER group’s profitability developed as planned. In the second quarter EBITDA reached € 29.7 million (previous year: € 9.0 million), EBIT was positive at € 22.1 million (previous year: € 1.8 million). EBT amounted to € 1.6 million (previous year: € -6.6 million). Earnings after tax amounted to € 1.2 million (previous year: € -4.3 million).
As of the end of the first half year EBITDA thus amounted to € 47.6 million (previous year: € 4.7 million); EBIT amounted to € 32.5 million (previous year: € -9.3 million). EBT amounted to € 2.1 million (previous year: € -26.4 million). As of 30 June 2011, the group reportedearnings after tax of € 1.5 million (previous year: € -19.0 million). In the third and fourth quarters we expect clear, positive development in our profitability.
As of 30 June 2011, GILDEMEISTER had 5,710 employees , of whom 182 were trainees (31 Dec. 2010: 5,445). In comparison with year-end 2010, the number of employees has risen by 265. Some 3,362 employees (59%) worked for the domestic companies and 2,348 employees (41%) for our international companies. Employee expenses amounted to € 188.0 million (previous year’s period: € 162.3 million); the employee ratio fell to 23.2% (previous year’s period: 30.0%).
The GILDEMEISTER share was able to tie into the level of the previous months. Against the background of a capital market without any significant boosts, the course of the share showed an underperformance compared to the mdax in June. Starting from a price of € 16.28 (1 Apr. 2011), the share closed at the end of the second quarter at € 14.50 (30 Jun. 2011). The share is currently being quoted at € 12.80 (01 August 2011).
The worldwide market for machine tools will develop positively in 2011. In its latest forecast (as of April 2011); the German Machine Tool Builders‘ Association (VDW) is expecting growth in worldwide consumption of 19.6% to € 53.8 billion. In Asia demand is expected to grow by 18.1%, in America by 26.0% and in Europe growth should reach 20.8%. Strong boosts to consumption are coming as before from the BRIC countries: China, Brazil, India and Russia. In Germany growth of 30.5% is anticipated.
Future Business Development
We evaluate financial year 2011 more positively than we did at the start of the year; general economic conditions have further improved. Our current planning assumes that the positive cyclical development will endure despite the worldwide debt crisis. The current financial year is a transitional year for GILDEMEISTER. We plan – following the economic crisis – to return to a profitable growth path. In addition to rearranging our financing structure with the aim of clearly reducing our high interest rate burdens, we have regained our earnings power, in the “Machine Tools” core segment in particular.
The second half of the year is characterised for GILDEMEISTER by the EMO in Hanover . This most important trade fair worldwide for machine tools is important in setting the trends for the whole industry. GILDEMEISTER and Mori Seiki will present about 100 hightech exhibits jointly for the first time over a total of 7,300 m 2 exhibition space in Hall 2.
GILDEMEISTER evaluates financial year 2011 with confidence. From now on, due to the good progress in the first six months, we want to achieve order intake of over € 1.8 billion for the whole year. The good demand will involve all segments. In “Energy Solutions” we will once again take on major projects in the third quarter. Based on our high order backlog and the expected “EMO effect”, we are planning to increase sales revenues to more than € 1.6 billion.
With the proceeds from the capital increases, we have reduced our financial obligations significantly, which will have a positive effect on future business development. For the whole year we are planning clear growth in EBIT, EBT and in the annual profit. We are planning todistribute a dividend for financial year 2011.
We are also expecting an overall positive development in financial year 2012 . In its most recent forecast (as of April 2011), as before the German Machine Tool Builders Association (VDW) is expecting further growth in global machine tool consumption.
The Executive Board
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.