GILDEMEISTER shows a profit for the first quarter of 2009
Bielefeld. The overall economic situation is marked by the economic crisis. Worldwide demand for machine tools has been strongly curtailed as a result of the global recession. GILDEMEISTER, too, felt its effects at the start of the year: order intake, sales revenues and earnings declined in the first quarter of 2009. Order intake of Euro 236.8 million was clearly below the record level of the previous year’s quarter (Euro 591.9 million). Sales revenues fell to Euro 327.7 million (previous year: Euro 392.0 million). This development had an effect on profitability: in the first quarter, EBITDA reached Euro 22.7 million (previous year: Euro 33.4 million), EBIT amounted to Euro 15.5 million (previous year: Euro 25.9 million). EBT was positive at Euro 10.2 million (previous year: Euro 18.1 million). The group reported annual profit of Euro 6.5 million as of 31 March 2009 (previous year: Euro 11.2 million).
Over the course of the financial year 2009, even GILDEMEISTER will have to accept losses. We have responded in good time with costsaving measures. During the crisis, however, opportunities are taken advantage of: one opportunity is the cooperation with the Japanese machine tool producer, Mori Seiki. Together we will realise synergies and, in the interests of our customers, concentrate resources in order to achieve efficiency advantages. We will benefit from our proven business model and a clear corporate strategy. Our diverse mix of customers and industries, as well as our increasingly international presence, make us resistant. Furthermore, with our solar technology, we have an addition to our core areas of expertise. For the financial year 2009 we are expecting order intake to be markedly below that of the previous year; as a result, there will also be a clear decline in the development of sales revenues and profit. More detailed statements are not yet possible at present due to the complete change in the world economic environment.
In the first quarter, sales revenues reached Euro 327.7 million and were thus 16% below the previous year’s figure (Euro 392.0 million). The “Solar Technology“ division contributed Euro 21.8 million of this. Domestic sales revenues fell by 21% to Euro 151.8 million, international sales revenues shrank by 12% to Euro 175.9 million. The export share amounted to 54% (previous year: 51%).
Order intake of Euro 236.8 million (-60%) in the first quarter was clearly below the record level of the previous year’s quarter (Euro 591.9 million). The “Solar Technology” division achieved order intake of Euro 28.0 million (previous year: Euro 112.8 million). Order intake suffered a severe setback both domestically and internationally: domestic orders shrank by 62% to Euro 90.3 million (previous year: Euro 236.7 million). International orders decreased by 59% to Euro 146.5 million (previous year’s quarter: Euro 355.2 million). International orders accounted for 62% of orders (previous year: 60%). As a result of the international economic crisis, order intake showed a strong decline compared to the same period in the previous year. A lot of reserve was also apparent at the international spring trade fairs. We are hoping that, despite the difficult market environment, our intensified marketing activities will provide a boost in the coming months.
On 31 March 2009 the order backlog within the group amounted to Euro 636.5 million (-33%).
The GILDEMEISTER group’s profitability developed in the first quarter as follows: EBITDA reached Euro 22.7 million (previous year: Euro 33.4 million), EBIT amounted to Euro 15.5 million (previous year: Euro 25.9 million). EBT was positive at Euro 10.2 million (previous year: Euro 18.1 million). The group reported annual profit of Euro 6.5 million as of 31 March 2009 (previous year: Euro 11.2 million).
The effects of the financial and economic crisis continue to put pressure on the international capital markets. Within this environment, the GILDEMEISTER share recorded mixed development in the first two months of the year. The cooperation with the Japanese machine tool producer, Mori Seiki, had a positive impact on the share price in March. Starting from a share price at the beginning of the year of Euro 7.49 (2 Jan. 2009), the share closed the first quarter at Euro 5.84 (31 Mar. 2009). The drop in share price of 22% from the start of the year corresponded to the general trend of the MDAX, which suffered a loss of 23% in the same period. The share is currently quoted at Euro 8,08 (4 May 2009).
In the first quarter the number of employees fell in comparison with yearend 2008 by 139. As at 31 March 2009, GILDEMEISTER had 6,312 employees, of whom 238 were trainees (31 Dec. 2008: 6,451). In addition, by end of the first quarter we reduced the number of agency workers by 343 within the group. Apart from these measures and the cutback of overtime as well as the introduction of short-time work, we will have to reduce the number of employees during the first half year by a further 170 employees due to the economic development. This will be done primarily by the cutback of agency employment agreements. At the end of the first quarter, 3,814 employees (60%) worked for the domestic companies and 2,498 employees (40%) for our international companies. The personnel quota was 27.5% (previous year’s quarter: 21.3%), personnel expenditure amounted to Euro 93.0 million (previous year’s quarter: Euro 96.7 million).
Forecast:
„Grasping chances. Showing strengths“ – our motto in the year of the economic crisis - indicates how we want to develop further in the future. As before, we continue to see future sales markets as being in Asia and Eastern Europe. In the medium-term we will tap into them with more intense direct sales and co-operations and further strengthen our leading competitive position. We will concentrate our strengths and focus on stable market sectors, such as aerospace, medical technology and renewable energy sources.
GILDEMEISTER plans to gain further market shares in the worldwide declining machine tool market. With our newly-designed products, which have been consistently tailored to suit the needs of the customers, we will overcome the challenges that lie before us. Over the course of the financial year 2009, even GILDEMEISTER will have to accept losses. We have responded in good time with cost-saving measures. During the crisis, however, opportunities are taken advantage of: one opportunity is the cooperation with the Japanese machine tool producer, Mori Seiki. Together we will realise synergies and, in the interests of our customers, concentrate resources in order to achieve efficiency advantages. We will benefit from our proven business model and a clear corporate strategy. Our diverse mix of customers and industries, as well as our increasingly international presence, make us more resistant. Furthermore, with our solar technology, we have a successfully-developing addition to our core areas of expertise.
We enjoyed success at the most important machine tool trade fair at the beginning of April in Asia, the CIMT in Beijing, with 138 machines sold and orders worth Euro 22.5 million. Overall the Chinese market showed positive trends. An important industry is the EMO in Milan (5 to 10 October 2009), where GILDEMEISTER will present 40 exhibits, five of which are world innovations.
For the financial year 2009 we are expecting order intake to be markedly below that of the previous year; as a result, there will also be a clear decline in the development of sales revenues and profit. More detailed statements are not yet possible at present due to the complete change in the world economic environment. The extent of the worldwide economic crisis, its duration and effects on GILDEMEISTER cannot be planned for at the moment for the financial year 2009 with sufficient certainty.
The machine tool business will decline in 2009. The service business will develop weaker than anticipated at the beginning of the year. In the solar business, we expect positive development given the precondition of secured project financing. A high degree of flexibility allows GILDEMEISTER to respond appropriately to changing market conditions. GILDEMEISTER remains well-positioned in the important markets and, with consistently initiated measures, we are convinced that we will master the crisis.
GILDEMEISTER Aktiengesellschaft
The Executive Board
Key figures on business developement
The Interim Consolidated Financial Statements of GILDEMEISTER Aktiengesellschaft were prepared in accordance with the International Financial Reporting Standards (IFRS), as applicable within the European Union. The Interim Financial Statements have not been audited.
Note: We will be pleased to provide you with the complete Interim Report for the 1st quarter 2009 upon request.
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.