Bielefeld. The financial year 2007 was the most successful in GILDEMEISTER’s 137-year company history. Sales revenues rose by 18% to Euro 1,562.1 million (previous year: Euro 1,329.0 million). Order intake achieved an increase of 29% to Euro 1,864.8 million (previous year: Euro 1,442.9 million). Profitability continued to develop positively. EBITDA reached Euro 158.4 million (previous year: Euro 115.1 million); EBIT amounted to Euro 125.9 million (previous year: Euro 82.5 million). EBT rose by 76% to Euro 83.4 million (previous year: Euro 47.4 million). The group annual profit rose by 85% to Euro 50.1 million (previous year: Euro 27.1 million). Earnings per share increased to Euro 1.16 (previous year: Euro 0.63). All figures are provisional and are subject to audit. We will propose to the annual shareholders meeting on May 16, 2008 that a 75% higher dividend of Euro 0.35 be distributed for the financial year 2007 (previous year: Euro 0.20).
The worldwide rise in demand for machine tools is having a positive impact on sales revenues development. Sales revenues of Euro 1,562.1 million again exceeded expectations (previous year: 1,329.0 million); this corresponds to an increase of 18% or Euro 233.1 million. In the fourth quarter sales revenues amounted to Euro 487.2 million and were thus 20% above the previous year’s level (Euro 404.8 million). Over the whole year domestic sales revenues rose by 19% to Euro 730.4 million; foreign sales revenues increased by 16% to Euro 831.7 million. The export share amounted to 53% (previous year: 54%). The machine tools contributed 69% to sales revenues (previous year: 69%); the service business accounted for 31% (previous year: 31%).
Order intake of Euro 1,864.8 million (+29%) was higher than the previous year (Euro 1,442.9 million). In the fourth quarter order intake rose to Euro 461.1 million (previous year’s quarter: Euro 384.1 million). Both domestic orders of Euro 847.5 million (+31%) and international orders of Euro 1,017.3 million (+28%) contributed to the increase in order intake. International orders accounted for 55% of orders (previous year: 55%). a+f SunCarrier contributed considerably to order intake for the first time with Euro 81.5 million in the field of renewable energy sources. For the most part major orders will contribute to sales revenues and result in the financial year 2008.
In Germany we have noticeably increased our order intake. In Europe brisk business ensured further strengthening of our market position. In America orders have remained at the same level of development. In Asia our growth has been higher than average (+17%).
On December 31, 2007 the order backlog amounted to Euro 749.4 million and thus was 68% above the previous year’s value (Euro 446.7 million).
Profitability continued to develop positively. EBITDA reached Euro 158.4 million (previous year: Euro 115.1 million); EBIT amounted to Euro 125.9 million (previous year: Euro 82.5 million). EBT rose by 76% to Euro 83.4 million (previous year: Euro 47.4 million). The group annual profit rose by 85% to Euro 50.1 million (previous year: Euro 27.1 million). Earnings per share increased to Euro 1.16 (previous year: Euro 0.63). All figures are provisional and are subject to audit. At the annual general meeting we will propose a 75% higher dividend of Euro 0.35.
The GILDEMEISTER share gained noticeably in value in 2007. The share price gain of 93% developed better than the MDAX (+5%) and the SDAX (-7%). Market capitalisation rose by Euro 385.4 million to Euro 801.1 million. The share started the stock market year 2007 at a price of Euro 9.83 (2 Jan 2007); the lowest value of the year was Euro 9.20 (18 Jan 2007). Over the course of the year the share developed positively and reached its highest value of the year at Euro 22.80 on October 26, 2007. At the close of the year the share price was quoted at Euro 18.50 (28 Dec. 2007). Since December 12, 2007 GILDEMEISTER is quoted in the MDAX. At the beginning of the year the share followed the general development of the capital market. Currently it is quoted at Euro 14.18 (8 Feb. 2008). At present the stock market value inadequately reflects the group’s performance.
As at December 31, 2007 GILDEMEISTER had 5,998 employees (previous year: 5,558), of whom 226 were trainees. Compared to December 31, 2006, the number of employees has increased by 440. In order to meet the increased service requirements of our customers even better, we have further expanded our service capacity in Europe, Asia and also in Germany. On account of the significantly higher sales revenue performance, additional employees were hired at the production locations in Pfronten, Pleszew and Shanghai. Further staff increases occurred by the integration of DMG Automation. At year-end, 3,586 employees (60%) worked for our national companies and 2,412 employees (40%) for our international companies. Personnel expenditure amounted to Euro 366.4 million (previous year: Euro 320.2 million); the personnel expenditure quota decreased 22.9% (previous year: 24.1%).
Current forecasts for the machine tool construction industry for 2008 expect further growth. The German Engineering Federation (VDMA) expects an increase in production of 5% in 2008. For machine tools the German Machine Tool Builder’s Association (VDW) estimates a worldwide growth in consumption of 7%. For Germany a growth of 10% is predicted.
GILDEMEISTER made a good start to the new business year as planned. Our “Strategy 2011“ is consistently directed towards profitable growth. On the basis of forecasts for the markets relevant for us, in 2008 we are planning to achieve order intake of more than Euro 1.9 billion. Taking the high order backlog into account, we aim to increase sales revenues once again to more than Euro 1.8 billion. It is also intended to continue to develop the company’s profitability positively: On the basis of the planned increase in sales revenues we once again expect a double-digit percentage increase in EBT and in the annual profit. We plan a further increase in the dividend for the current financial year.
GILDEMEISTER is strategically well positioned to further grow profitably in the financial year 2008. We intend our growth to be organic and to be driven by our own innovative strength.
We will present our innovative machines, services and the solar technology at the relevant international trade fairs worldwide. We expect a special boost at the start of the year from our in-house exhibitions, both nationally and internationally, as well as from the leading trade fairs METAV in Germany and DIE & MOULD. We intend to lead our customers with innovative technologies into a successful future.
The Executive Board
Provisional figures on business development 2007