GILDEMEISTER increases order intake forecast for 2011​​​​​​​

Bielefeld. Despite the debt crisis, worldwide demand for machine tools remains at a high level. GILDEMEISTER was able to increase order intake, sales revenues and earnings figures in the third quarter in line with plans. As of 30 September 2011, order intake reached € 1,512.3 million (+49%). Sales revenues exceeded the previous year’s figure at € 1,194.3 million (+39%). Profitability grew in line with plans: EBITDA reached € 89.6 million (previous year: € 30.2 million), EBIT rose to € 66.5 million (previous year: € 9.1 million). EBT amounted to € 26.6 million (previous year: € – 18.3 million). As of 30 September 2011, the group reports net income after taxes of € 18.1 million (previous year: € – 13.6 million).

The EMO 2011 (19–24 September) was particularly successful for GILDEMEISTER. The most important trade fair worldwide for machine tools was the most successful EMO of all time with the highest order intake at a trade fair in the company‘s history. As a result, sales of 847 machines to a value of € 207.6 million were booked.

Following the slogan “Cooperation strengthens innovation“, GILDEMEISTER and Mori Seiki presented the latest trends together for the first time in Germany. Our successful cooperation in the Asian and North American cooperation markets will be further extended through combining our sales and service activities in Germany and ultimately in the remaining European markets.

The good EMO has shown that demand for machine tools remains high. In the latest forecast (as at October 2011), the economic associations, VDW (German Machine Tool Builders Association) and Oxford Economics, are expecting growth in worldwide machine tool consumption for 2011 of 16.9% to € 52.6 billion (forecast April 2011: 19.6%).

For the whole year 2011, we are raising our order intake forecast. From now on we are expecting order intake of more than € 1.9 billion. We intend to increase sales revenues to more than € 1.6 billion. We are expecting clear growth in EBIT, EBT and also in annual net income for the whole year. Due to the effects of the worldwide debt crisis, which cannot be foreseen as yet, specific statements are not possible at present. We are planning to distribute a dividend for financial year 2011.

Sales revenues in the third quarter reached € 419.7 million (+27% on the previous year’s quarter: € 329.5 million). In the first nine months of the year sales revenues amounted to € 1,194.3 million and were thus clearly above the previous year’s figure (+39% on the corresponding period in the previous year: € 858.4 million). The group’s international sales revenues rose by 49% to € 766.3 million. Domestic sales revenues increased by 24% to € 428.0 million. The export share amounted to 64% (previous year: 60%).

In the third quarter order intake rose by 49% to € 540.7 million (previous year’s quarter: € 362.3 million). In our core “Machine Tools” business we were able to increase order intake significantly by 76% to € 387.0 million (previous year’s quarter: € 220.4 million). The satisfactory progress made in order intake in the third quarter is due to the successful EMO in Hanover, where we were able to achieve notable success with 847 machines sold to a value of € 207.6 million. In the first nine months order intake amounted to € 1,512.3 million (+49%); it was thus € 498.5 million above the same period in the previous year (€ 1,013.8 million). Domestic orders rose by 49% to € 600.6 million (previous year: € 401.8 million). International orders grew by 49% to € 911.7 million (previous year: € 612.0 million). International orders accounted for 60% of orders (previous year: 60%).

The order backlog in the group as of 30 September 2011 amounted to € 890.1 million.

GILDEMEISTER was able to increase profitability in the third quarter in line with plans. EBITDA reached € 42.0 million (previous year: € 25.5 million), EBIT was positive at € 34.0 million (previous year: € 18.4 million). EBT amounted to € 24.5 million (previous year: € 8.1 million). Earnings after tax amounted to € 16.6 million (previous year: € 5.4 million).

As of 30 September EBITDA had thus reached € 89.6 million (previous year: € 30.2 million), EBIT rose to € 66.5 million (previous year: € 9.1 million). EBT amounted to € 26.6 million (previous year: € –18.3 million). As of 30 September 2011, the group reports earnings after tax of € 18.1 million (previous year: € –13.6 million). In the fourth quarter we are planning further positive growth in our profitability.

As of 30 September 2011 GILDEMEISTER had 5,948 employees, of whom 220 were trainees (31 Dec. 2010: 5,445). In comparison with year-end 2010, the number of employees has risen by 503. Our domestic companies have 3,556 employees (60%) and our foreign companies have 2,392 employees (40%). Employee expenses amounted to € 282.3 million (corresponding period of the previous year: € 243.3 million); at full capacity utilisation, the personnel ratio fell to 22.4% (previous year’s period: 27.4%).

Even the GILDEMEISTER share clearly lost in value as a consequence of the volatility of the international capital markets. The on-going debt crisis in the eurozone and in the USA, as well as concerns about a sustained global economic downturn, negatively impacted stock markets in the third quarter. The share closed on 30 September 2011 at € 9.60. The share is currently quoted at € 10.35 (25 Oct. 2011).

Forecast:

The worldwide market for machine tools is developing positively in 2011. In the latest forecast (as at October 2011), the economic associations, VDW and Oxford Economics, are expecting growth in worldwide machine tool consumption for 2011 of 16.9% to € 52.6 billion (forecast April 2011: 19.6%). The associations are also anticipating growth in the global machine tool market for 2012; consumption is expected to rise by 15.5% to € 60.8 billion compared to 2011.

For the whole year 2011 we are raising our order intake forecast. From now on we are expecting order intake of more than € 1.9 billion. Thus order intake will be distributed to the segments as in the last nine months. We intend to increase sales revenues to more than € 1.6 billion. The distribution over the “Machine Tools” and “Services” segments will closely follow the growth pattern up to 30 September. In “Energy Solutions” we are planning a clear increase in sales revenues in the fourth quarter. We are expecting clear growth in EBIT, EBT and also in net income after taxes for the whole year. Due to the as yet unforeseeable effects of the worldwide debt crisis, specific statements are not possible at present. We are planning to distribute a dividend for financial year 2011. GILDEMEISTER is expecting a stable business development in financial year 2012.

GILDEMEISTER Aktiengesellschaft
The Executive Board