Press Release Financial Reports
03.08.2009|Profitable despite strong decline in sales revenues​​​​​​​

GILDEMEISTER with positive results in second quarter ​​​​​​​

Bielefeld. The global recession is continuing to affect the entire economic situation. Worldwide demand for machine tools is declining sharply. In the first months of the year, worldwide consumption fell by 66% and in Germany by 73%. Even GILDEMEISTER felt this effect noticeably: order intake, sales revenues and earnings declined in the first six months of 2009. Order intake amounted to Euro 580.7 million (previous year: Euro 1,133.4 million). Sales revenues fell to Euro 612.7 million (previous year: Euro 851.5 million). Profitability was still positive even in the second quarter. In the first six months EBITDA reached Euro 41.4 million (previous year: Euro 84.6 million), EBIT amounted to Euro 26.9 million (previous year: Euro 70.0 million). EBT was positive at Euro 15.1 million (previous year: Euro 54.3 million). As of 30 June 2009 the group reports annual profit of Euro 9.7 million (previous year: Euro 33.8 million). 

Over the course of the financial year 2009, further decline is inevitable. The cost reduction measures that were introduced timely in all areas should sustain the productivity and earning capacity of GILDEMEISTER. Our business model, which has been successfully complemented by the solar technology, and our clear corporate strategy make us more resistant. With our broad mix of customers and industries, as well as our distinctive globality, we will overcome the challenges that lie before us. Through our cooperation with Mori Seiki, in the future we will achieve essential and important efficiency advantages. 

For the financial year 2009, overall we expect a marked decline in order intake. As a result, there will also be a clear decline in sales revenues. According to our current planning status we are expecting a positive result (EBIT). Due to the difficulty in predicting economic development worldwide, it is still not possible to make valid statements at present.

Sales revenues in the second quarter reached Euro 285.0 million. In the first six months, sales revenues amounted in total to Euro 612.7 million and were thus 28% below the previous year’s level (Euro 851.5 million). The "Solar Technology" division had sales revenues of Euro 22.8 million (previous year: Euro 40.1 million). Domestic sales revenues fell by 29% to Euro 284.6 million, international sales revenues shrank by 27% to Euro 328.1 million. The export share amounted to 54% (same period in previous year: 53%).

Order intake in the second quarter reached Euro 343.9 million (-36%; previous year’s quarter: Euro 541.5 million). In the first six months, order intake amounted to Euro 580.7 million and was thus 49% or Euro 552.7 million below the previous year’s period (Euro 1,133.4 million). At Euro 438.4 million the machine tool business declined (-63%). Due to the continued bad demand the service business fell by 38%. The solar business, however, developed positively at +15%. In the second quarter, the “Solar Technology” division achieved order intake of Euro 135.2 million (previous year: Euro 29.2 million). Overall, a+f GmbH increased order intake by Euro 163.2 million in the first six months. Order intake suffered a severe setback both domestically and internationally: Domestic orders shrank by 65% to Euro 167.9 million (previous year: Euro 478.7 million). International orders decreased by 37% to Euro 412.8 million (previous year: Euro 654.7 million). International orders accounted for 71% of orders (previous year: 58%). 

The industry highlight of solar technology was the Intersolar in Munich in May. The machine tool trade fairs in the first six months of the year attracted a lot of interest from our customers, however, order activity continued to be very restrained. One success was the most important Chinese machine tool trade fair at the start of April in Asia, the CIMT in Beijing. GILDEMEISTER also took positive stock of the Moscow trade fair Metalloobrabotka 2009, which took place at the end of May. We are hoping that, despite the difficult market environment, our intensified sales and marketing activities will generate a boost in the coming months.

As at 30 June 2009 the order backlog within the group amounted to Euro 660.1 million (-36%).

Profitability of the GILDEMEISTER group was still positive even in the second quarter: EBITDA amounted to Euro 18.7 million (previous year: Euro 51.2 million). EBIT amounted to Euro 11.4 million (previous year: Euro 44.1 million). As of the end of the first six months EBITDA reached Euro 41.4 million (previous year: Euro 84.6 million); EBIT amounted to Euro 26.9 million (previous year: Euro 70.0 million). EBT was positive at Euro 15.1 million (previous year: Euro 54.3 million). As of 30 June 2009 the group reports annual profit of Euro 9.7 million (previous year: Euro 33.8 million).

As at 30 June 2009, GILDEMEISTER had 6,106 employees, of whom 235 were trainees (31 Dec. 2008: 6,451). In the first six months the number of employees fell in comparison with year-end 2008 by 345. In addition, we have terminated all employment agreements within the scope of the temporary provision of labour to the end of the second quarter (552 agency workers). We are thus achieving savings about Euro 15 million in the entire year in other expenses. Analogous to business development and the current staffing measures, we are planning employee numbers as at the end of the financial year of approximately 5,500 including trainees. Furthermore, structural and organisational changes have been realised in order to improve efficiency in the assembly and procedure organisation. At the end of the first six months, 3,757 employees (61%) worked for our domestic companies and 2,349 employees (39%) for our international companies. Personnel expenditure decreased by Euro 17.4 million to Euro 178.8 million (previous year’s period: Euro 196.2 million); the personnel quota was 29.1% (previous year’s period: 20.1%).

The GILDEMEISTER share was able to record a pleasant trend in the second quarter and was nearly able to compensate for the share price loss of the first three months. Positive stimulus came from the cooperation with the japanese machine tool producer Mori Seiki concluded in March and from the development of order intake in the “Solar Technology” division. Following a share price of Euro 6.15 on 1 April, the share closed the second quarter at Euro 6.88 (30 Jun. 2009). Currently the share price is Euro 7.70 (03 August 2009).

Forecast:

Over the course of the financial year 2009, further decline is inevitable. The cost reduction measures that were introduced timely in all areas should sustain the productivity and earning capacity of GILDEMEISTER. Our business model, which has been successfully complemented by the solar technology, and our clear corporate strategy make us more resistant. With our broad mix of customers and industries, as well as our distinctive globality, we will overcome the challenges that lie before us. Through our cooperation with Mori Seiki, in the future we will achieve essential and important efficiency advantages. 

For the financial year 2009, overall we expect a marked decline in order intake. As a result, there will also be a clear decline in sales revenues. According to our current planning status we are expecting a positive result (EBIT). Due to the difficulty of predicting economic development worldwide, it is still not possible to make valid statements at present.

The machine tool business will decline sharply in 2009. The service business will likewise develop weakly as our customers are also making heavy cutbacks on spare parts and services. For the solar business we are continuing to expect a positive development trend given the pre-condition of secured project financing. A revival could take place in the fourth quarter through the EMO in Milan – an industry highlight, at which GILDEMEISTER will present 40 exhibits from 5 to 10 October, of which seven are world innovations.

Given this stimulus and according to our current planning status, we expect order intake of approximately Euro 1.2 billion for the financial year 2009.

The economic crisis will continue to have a marked effect on sales revenue development throughout the further course of the year. As a result of the clear decline in order intake, sales revenues will also decline markedly. According to our current planning status, we are expecting sales revenues of approximately Euro 1.3 billion (+/-5%) for the financial year 2009. Due to the measures initiated, we are therefore – according to our current planning status – expecting a positive result (EBIT) for the whole year.

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 on our way to overcome the crisis.

GILDEMEISTER Aktiengesellschaft
The Executive Board

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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 second quarter 2009 upon request.


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.