GILDEMEISTER still on course in 3rd quarter

• Order intake rose by 13% to € 1,706.4 million as at 30 September (previous year: € 1,512.3 million)
• Sales revenues increased by 20% to € 1,432.9 million (previous year: € 1.194,3 million)
• EBIT rose by 25%: € 83.3 million (previous year: € 66,5 million)
• Earnings after taxes improved: € 49.8 million (previous year: € 18.1 million)
• Forecast 2012: EBT of € 110 million and annual profit of € 70 million planned

Bielefeld. Overall, the world economy is developing at a steady pace. The individual world markets, however, are showing very different trends. The debt crisis in the eurozone remains unresolved. The trade associations, VDW (The German Machine Tool Builders‘ Association) and Oxford Economics, are basing their forecast (as at October 2012) for the year 2012 on lower growth in worldwide machine tool consumption (5.2%; € 65.2 billion).

GILDEMEISTER has achieved its order intake targets of more than € 500 million in the third quarter (€ 518.0 million) despite the traditionally weaker sales in the summer months. As at 30 September, order intake was € 1,706.4 million (+ 13%). Sales revenues rose to € 1,432.9 million (+ 20%). The earnings situation developed according to plan: EBITDA reached € 113.0 million (previous year: € 89.6 million), EBIT rose to € 83.3 million (previous year: € 66.5 million). EBT was € 72.7 million (previous year: € 26.6 million). As at 30 September 2012, the group reports earnings after taxes of € 49.8 million (previous year: € 18.1 million).

Overall, the worldwide markets for machine tools reveal a still surprisingly steady demand. The Asian markets are proving to be dynamic. Demand in Russia, Eastern Europe and North America is increasing; the German market continues at a constantly high level. We are therefore expecting further steady business development overall. The autumn trade fairs, the IMTS in Chicago and the AMB in Stuttgart, went well and confirm this trend. Thus the further decline in demand from Southern Europe can be compensated.

GILDEMEISTER confirms its forecasts for 2012: In the current financial year, we are expecting order intake of more than € 2 billion. We are planning sales revenues of more than € 1.9 billion and for the whole year we intend to achieve EBT of more than € 110 million and net income for the year of more than € 70 million. This planning is based on current market forecasts and does not take account of the euro debt crisis spreading any further. Due to the positive outlook for business and earnings, we plan to distribute a higher dividend per share for financial year 2012 than for the previous year.

Sales revenues in the third quarter were € 516.1 million (+ 23% on the previous year’s quarter: € 419.7 million). In the first nine months sales revenues of € 1,432.9 million exceeded the previous year’s figure by 20% (previous year: € 1,194.3 million). Domestic sales revenues increased by 26% to € 537.4 million; the group’s international sales revenues rose by 17% to € 895.5 million. The export share amounted to 62% (previous year: 64%).

Order intake in the third quarter was € 518.0 million (previous year: € 540.7 million); we have therefore achieved our target. The autumn trade fairs, the IMTS in Chicago and the AMB in Stuttgart, were successful. In the first nine months, order intake was € 1,706.4 million (+ 13%); it was thus € 194.1 million above the previous year’s period. Domestic orders amounted to € 582.1 million (previous year: € 600.6 million). International orders grew by 23% to € 1,124.3 million (previous year: € 911.7 million).

On 30 September 2012 the order backlog within the group was € 1,053.1 million (+ 18% year-on-year).

GILDEMEISTER was able to improve its earnings situation further in the third quarter as planned: EBITDA rose to € 48.3 million (previous year: € 42.0 million), EBIT amounted to € 37.9 million (previous year: € 34.0 million) and EBT reached € 34.5 million (previous year: € 24.5 million.) As of 30 September EBITDA amounted to € 113.0 million (+ 26%; previous year: € 89.6 million), EBIT rose to € 83.3 million (+ 25%; previous year: € 66.5 million). EBTamounted to € 72.7 million (previous year: € 26.6 million). The group reports earnings after taxes for the first nine months of € 49.8 million (previous year: € 18.1 million).

Investments in property, plant and equipment, and in intangible assets in the first nine months amounted to € 39.5 million (previous year’s figure: € 47.2 million). At our Bielefeld site we set up a new progressive assembly system. The opening of the “GILDEMEISTER energy solutions Park” in Bielefeld took place on 26 September. In future the site will be supplied with up to 15% of its power from its own energy supply produced emission-free. On 16 October 2012 the opening of the Technical Innovation Center with expansion of the assembly area took place in Seebach. With an investment volume of about € 18 million and a construction time of one year, the group is underlining the importance of the site in Thuringia. On 23 October the laying of the foundation stone for our new production site in Russia took place: In Ulyanovsk, an industrial region at the Volga, we will build a state-of-the-art production and assembly plant with education center and showroom.

As of 30 September 2012, GILDEMEISTER had 6,466 employees, of whom 230 were trainees (31 Dec. 2011: 6,032). Compared to year-end 2011, the number of employees rose by 434. Our domestic companies had 3,718 employees (57%) and our foreign companies had 2,748 employees (43%). The employee expenses amounted to € 328.2 million (previous year’s period: € 282.3 million). The personnel expenses ratio at 22.2% was slightly below the level of the previous year’s period (22.4%).

The GILDEMEISTER share recorded a sideways movement in the third quarter due to uncertainty on the international capital markets as a consequence of the euro debt crisis. Starting at € 12.79 (2 Jul. 2012), the share closed the third quarter at € 13.81 (28 Sept. 2012); this corresponds to an increase of about 8%. At the current time the share is being quoted at € 14.73 (22 Oct. 2012).

Forecast:

The worldwide market for machine tools will develop at a steady pace in 2012 according to the latest forecasts. The VDW (German Machine Tool Builders’ Association) and the British economic research institute, Oxford Economics, are now basing their forecast (as at October 2012) on a reduced growth in world consumption of € 65.2 billion (+5.2%). In Asia demand is expected to grow by 6.5% and in America by 7.8%. Europe is expected to follow a steady trend (-0.4%). In Germany growth of 3.1% is anticipated. GILDEMEISTER assumes a punctual attenuation of demand for machine tools. Due to the uncertainty in the euro region clients are increasingly postponing planned investments. For 2013, the associations are also anticipating growth in the worldwide machine tool market. World consumption is expected to rise by 8.0% to € 70.4 billion.

We are also assuming a further overall steady business development for GILDEMEISTER also in the fourth quarter. GILDEMEISTER confirms its forecasts for the year 2012: In the current financial year we are expecting order intake of more than € 2 billion. We are planning sales revenues of more than € 1.9 billion. The allocation to the “Machine Tools” and “Industrial Services” segments will follow the trend up to 30 September. For the whole year we intend to achieve EBT of more than € 110 million and net income for the year of more than € 70 million. This planning is based on current market forecasts and does not take account of the euro debt crisis spreading any further. Due to the positive outlook for business and earnings, we plan to distribute a higher dividend per share for financial year 2012 than for the previous year.

GILDEMEISTER Aktiengesellschaft
The Executive Board