Press Release Financial Reports
05.05.2011|Significant increase in order intake, sales revenues and results​​​​​​​

GILDEMEISTER on a growth curve in the 1st quarter​​​​​​​

Bielefeld . Despite the effects of the natural catastrophe in Japan , the global economy continues to follow a growth trend. Consumption of machine tools is rising by 19.6% according to the latest forecast of the German Machine Tool Builders‘ Association (VDW) and Oxford Economics. GILDEMEISTER has made a good start to financial year 2011 as planned and in the first quarter was able to increase order intake, sales revenues and earnings markedly. In line with our motto “Cooperation sustains innovation“, in the first quarter we set the course for a more intense cooperation with Mori Seiki. Order intake of € 445.9 million (+48%) exceeded the previous year’s quarter (€ 302.3 million). Sales revenues reached € 377.4 million (+54%; previous year: € 244.4 million). Profitability likewise improved significantly: EBITDA was positive at € 17.9 million (previous year:€ -4.3 million); EBIT amounted to € 10.4 million (previous year: € -11.1 million). EBT amounted to € 0.5 million (previous year: € -19.8 million). As of 31 March 2011 the group reported earnings after tax of € 0.3 million (previous year: € -14.7 million).

We assume that the positive development will continue. Our innovations were very well received at the first trade fairs and in-house exhibitions of the year. In addition, we are well-positioned in the USA and in Asia through the cooperation with Mori Seiki. The cooperation with our Japanese partner has been reinforced through Mori Seiki’s participation in the capital increases. The goal of gaining an industrial anchor investor has been achieved. The two capital measures resulted in net issue proceeds totalling € 213.3 million.

In financial year 2011, we now want to realise order intake of more than € 1.7 billion. We intend to increase sales revenues to more than € 1.6 billion. Our planning depends on the positive cyclical development lasting. GILDEMEISTER is strategically well-positioned to master the future and to grow profitably. We are expecting clear growth in EBT and in annual net income for the whole year. Based on the positive outlook for business and earnings, we are planning to pay a dividend for financial year 2011.

In the first quarter, sales revenues reached € 377.4 million and were thus € 133.0 million (+54%) above the comparable previous year’s level (€ 244.4 million). In the “Machine Tools“ segment, sales revenues rose by € 79.6 million (+62%) to € 208.4 million. “Services” increased by € 31.4 million (+41%) to € 108.2 million; “Energy Solutions” grew by 57% to € 60.7 million (previous year: € 38.7 million). International sales revenues rose by 64% to € 253.3 million; national sales revenues increased by 38% to € 124.1 million. The export share amounted to 67% (previous year: 63%).

In the first quarter, order intake rose by 48% to € 445.9 million (previous year’s quarter: € 302.3 million). In our core “Machine Tools” business we were able to increase order intake markedly by 57% to € 295.4 million (previous year: € 188.7 million). “Services“ rose by 53% to € 135.8 million (previous year: € 88.9 million) and in “Energy Solutions“ we booked order intake of € 14.6 million (previous year: € 24.6 million). Domestic orders rose overall by 61% to € 187.2 million (previous year: € 116.1 million). International orders grew by 39% to € 258.7 million (previous year: € 186.2 million). The inter-national share of orders amounted to 58% (previous year: 62%). In the first quarter order intake progressed positively in line with expectations. With 391 machines sold at a value of € 107.7 million, the traditional in-house exhibition in Pfronten was the most successful in-house exhibition of all time. At 13 national and international spring trade fairs and exhibitions we were able to achieve strong product interest and good order intake.

On 31 March 2011 the order backlog within the group amounted to € 682.8 million (+6% to the previous year’s date).

The GILDEMEISTER group’s profitability developed in the first quarter as follows: EBITDAwas positive at € 17.9 million (previous year: € -4.3 million); EBIT amounted to € 10.4 million (previous year: € -11.1 million). EBT amounted to € 0.5 million (previous year: € -19.8 million). As of 31 March 2011, the group  reported earnings after tax of € 0.3 million (previous year: € -14.7 million).

As of 31 March 2011, GILDEMEISTER had 5,625 employees, of whom 180 were trainees (31 Dec. 2010: 5,445). In comparison with year-end 2010, the number of employees has risen by 180. Some 3,343 employees (59%) worked for the domestic companies and 2,282 employees (41%) for our international companies. Employee expenses amounted to € 92.9 million (previous year’s period: € 78.1 million). With a clear rise in capacity utilisation, the personnel ratio fell to 22.5% (previous year’s period: 32.0%).

The GILDEMEISTER share price recorded a sideways movement in the first three months and followed the MDAX performance. Starting from a price of € 16.90 on the first day of trading (3 Jan. 2011), the share closed the first quarter at € 15.95 (31 Mar. 2011). The share is currently being quoted at € 17.32 (5 April 2011). The capital increases carried out in March and April 2011 even had a positive impact on the GILDEMEISTER share’s performance.

The first, 10% capital increase (4,558,200 new shares) was subscribed by our cooperation partner, Mori Seiki, at an issue price of € 18.22 per new share; this corresponded to a premium of about 27% measured against the volume weighted average price for the GILDEMEISTER share on the closing date or 20% measured by the volume-weighted average price of the last ten trading days before the resolution.
In the second, 20% subscription rights capital increase the 10,028,040 new shares were offered to all shareholders at a ratio of 5:1. The subscription price amounted to € 13.66. The shareholders made extensive use of their subscription rights, the placement was at 99.7%. Since 15 April 2011 Mori Seiki Co., Ltd., Nagoya ( Japan ) has a share of voting rights of 20.1% (12,093,817 voting rights) of GILDEMEISTER Aktiengesellschaft.
GILDEMEISTER intends to predominately use the net issue proceeds from both capital increases of € 213.3 million to repay financial liabilities and thus to strengthen its equity base.


The worldwide market for machine tools will develop positively in 2011. The German Machine Tool Builders‘ Association (VDW) and the British economic research institute, Oxford Economics, are expecting growth in worldwide consumption of 19.6% to € 53.8 billion in their latest forecasts (as of April 2011). In Asia demand is expected to grow by 18.1%, in America it should even grow 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 . Growth of 30.5% is expected in Germany.

GILDEMEISTER will further expand its global presence in the major markets. Our motto for the current year is: Cooperation sustains innovation. Our cooperation with Mori Seiki is progressing successfully and we have it to thank for numerous ideas, suggestions and impetus.

Future business development

GILDEMEISTER is planning financial year 2011 more optimistically than at the start of the year due to growing demand. Conditions have further improved. One additional success was the most important machine tool trade at the start of April in China , the CIMT in Beijing , with orders to a value of € 45.2 million and 234 machines sold. During the CIMT the groundwork was laid for cooperation between GILDEMEISTER, the Japanese machine tool builder, Mori Seiki Co. Ltd., and the Chinese machine tool builder, Shen Yang Machine Tool (Group) Co., Ltd. (SYMG) (see press release of 20 April 2011). The Intersolar in Munich (8 June to 10 June 2011) will also be trend-setting as the world’s major solar trade fair. We expect particular impetus to come from the most important industry highlight worldwide, the EMO in Hanover (19 Sep. to 24 Sep. 2011), where we will present 60 exhibits, of which 10 will be world premieres.

GILDEMEISTER evaluates financial year 2011 optimistically. In the current financial year, we now want to achieve order intake of more than € 1.7 billion. For the whole year we are anticipating growing demand for our machine tools, services and energy solutions.

We now plan to increase sales revenues to more than € 1.6 billion.

In earnings we are working on returning GILDEMEISTER sustainably to the profitable growth path of the record years before the economic crisis. We are strategically well-positioned to master the future and to grow profitably. With the issue proceeds of the capital increases we will redeem the borrowers’ notes and thus reduce the financial liabilities significantly. We are expecting clear growth in EBT and in annual net income for the whole year. Given the positive outlook for business and earnings, we are planning to pay a dividend for financial year 2011.

We are expecting positive, dynamic development in financial year 2012. In its most recent forecasts (as of April 2011), the VDW is expecting further growth in global machine tool consumption of 19.2%. We are anticipating another rise in order intake, sales revenues and earnings.

GILDEMEISTER Aktiengesellschaft
The Executive Board

Disclaimer, Forward-looking statement

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.