GILDEMEISTER successful also in the 2nd quarter

• Order intake increased to € 1,188.4 million as at 30 June
  (+22%; previous year: € 971.6 million)
• Sales revenues reach € 916.8 million (+18%, previous year: € 774.6 million)
• EBT increased significantly: € 38.2 million (previous year: € 2.1 million)
• Earnings after taxes improved clearly: € 26.2 million (previous year: € 1.5 million)
• Higher dividend planned for financial year 2012

Bielefeld. At the present time the world economy is relatively stable, nevertheless, there is growing uncertainty in the eurozone as additional countries have recently needed funds from the European rescue package. For machine tool consumption in 2012, the VDW (German Machine Tool Builders‘ Association) and Oxford Economics are still forecasting (as at April 2012) worldwide growth of 8.8%.

GILDEMEISTER was once again able to further increase order intake, sales revenues and income in the second quarter. Order intake rose at the end of the first six months to € 1,188.4 million (+22%; previous year: € 971.6 million). Sales revenues reached € 916.8 million (+18%; previous year: € 774.6 million); the order backlog surpassed the billion mark. EBITDA amounted to € 64.7 million (previous year: € 47.6 million), EBIT reached € 45.4 million (previous year: € 32.5 million) and EBT rose to € 38.2 million (previous year: € 2.1 million). As at 30 June 2012, the group reports earnings after taxes of € 26.2 million (previous year: € 1.5 million).

Statements on future business performance will be come more volatile. Order intake in the third quarter will be more restrained due to seasonal factors. In the second half of the year we are generally planning to continue our good performance. We expect stimulus to come from the international autumn trade fairs starting in September – the IMTS in Chicago, the AMB in Stuttgart, the BIMU in Milan and the JIMTOF in Tokyo.

The Asian markets, America and the Eastern European markets are persistently developing positively. Willingness to invest is continuing to decline in the Southern European markets as a consequence of the euro debt crisis.

We are continuing to push ahead with our cooperation with Mori Seiki. We are in line with plans and we are making increasing use of synergy potentials. At the INTERSOLAR in Munich, we presented the strategic new focus of GILDEMEISTER energy solutions for the first time.

GILDEMEISTER confirms its forecasts for 2012: In the current financial year we are expecting order intake for the first time 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 € 100 million as well as net income for the year of more than € 65 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 in the previous year.

Sales revenues in the second quarter reached € 465.0 million (previous year: € 397.2 million). Sales revenues in the first half year of € 916.8 million surpassed the previous year’s figure by 18% (previous year: € 774.6 million). Domestic sales revenues increased by 35% to € 368.1 million; the group’s international sales revenues rose by 9% to € 548.7 million. The export share amounted to 60% (previous year: 65%).

Order intake rose in the second quarter by 11% to € 583.3 million (previous year: € 525.7 million). In the first half year order intake amounted to € 1,188.4 million (+ 22%); it was thus € 216.8 million higher than the previous year‘s period.   Domestic orders rose overall by 5% to € 396.5 million (previous year: € 376.8 million). International orders grew by 33% to € 791.9 million (previous year: € 594.8 million). At the international trade fairs our products met with great interest: The SIMTOS in Seoul, the METALLOOBRABOTKA in Moscow and the CIMES in Beijing were successful.

On 30 June 2012 the order backlog within the group amounted to € 1,079.9 million (+ 40% on the previous year’s date).

GILDEMEISTER was also able to improve its results of operations in the second quarter. EBITDA rose to € 36.1 million (previous year: € 29.7 million), EBIT reached € 26.6 million (previous year: € 22.1 million) and EBT rose to € 23.2 million (previous year: € 1.6 million). As of the end of the first half year, EBITDA amounted to € 64.7 million (+ 36%;revious year: € 47.6 million), EBIT reached € 45.4 million (+ 40%; previous year: € 32.5 million) and EBT rose to € 38.2 million (previous year: € 2.1 million). As at 30 June 2012, the group reports earnings after taxes of € 26.2 million (previous year: € 1.5 million).

As at 30 June 2012, GILDEMEISTER had 6,378 employees, of whom 163 were trainees (31 Dec. 2011: 6,032). In comparison with year-end 2011, the number of employees has risen by 346. Our domestic companies had 3,638 employees  (57%) and our foreign companies had 2,740 employees (43%). The personnel costs amounted to € 219.8 million (previous year‘s period: € 188.0 million). In comparison with the previous year, the employee ratio decreased slightly to 22.9% (previous year’s period: 23.2%).

In the second quarter the GILDEMEISTER share was not able to pick up from the positive performance in the first three months. Uncertainty caused by the euro debt crisis is proving increasingly to be a burden on the capital markets. Starting at € 14.99 (2 Apr. 2012), the share closed the second quarter at € 12.41 (29 Jun. 2012). At the present time the share is being quoted at € 11.50 (23 July 2012).

Forecast:

The worldwide market for machine tools should develop at a relatively steady pace in 2012. The forecast of the German Machine Tool Builders‘ Association (VDW) and of the British economic research institute, Oxford Economics, (as at April 2012) still continue to anticipate growth in worldwide consumption of 8.8% or € 67.4 billion. The statistics available from the major national machine tool builders‘ associations, however, indicate a decline in order intake. According to our estimates, worldwide consumption will be lower.

GILDEMEISTER confirms its forecasts for financial year 2012: In the current financial year we are expecting order intake for the first time of more than € 2 billion. Statements on future business performance will become more volatile. Order intake in the third quarter will be more restrained due to seasonal factors. In the second half of the year we are generally planning to continue our good performance.

The Asian markets, America and the Eastern European markets are persistently developing positively. Willingness to invest is continuing to decline in the Southern European countries as a consequence of the euro debt crisis. We are continuing to push ahead with our cooperation with Mori Seiki. We are in line with plans and we are making increasing use of synergy potentials.

We are planning sales revenues of more than € 1.9 billion and for the whole year we intend to achieve EBT of more than € 100 million and net income for the year of more than € 65 million. Free cash flow of more than € 50 million is planned. 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 in the previous year.

General conditions for financial year 2013 are actually difficult to be estimated. The economy in Europe will be significantly affected by how the euro debt crisis develops and the results of the rescue packages.

For 2013, the VDW and Oxford Economics are still forecasting growth (as at April 2012) in the worldwide consumption of machine tools. We are planning a positive development also for the financial year 2013. We have introduced measures to be flexible on costs so as to be prepared for any possible economic changes.

GILDEMEISTER Aktiengesellschaft
The Executive Board