Interim Report 1st Quarter 2007
Bielefeld. The worldwide demand for machine tools continues unabated at a high level. GILDEMEISTER made a successful start to the financial year 2007. Once again we were able to increase order intake, sales revenues and the results in the first quarter. Order intake rose to Euro 416.1 million (+23%); sales revenues increased to Euro 320.3 million (+17%). The financial results increased as planned: EBITDA reached Euro 24.1 million (previous year: Euro 18.1 million), EBIT amounted to Euro 16.4 million (previous year: Euro 10.4 million). EBT rose to Euro 8.7 million (previous year: Euro 2.2 million). The group reports an annual profit of Euro 4.8 million as at 31 March 2007 (previous year: Euro 1.1 million).
GILDEMEISTER will continue its growth trend in the financial year 2007. We are expecting particular stimuli to come from the EMO 2007 in Hanover (17 – 22 September), the most important trade fair worldwide for machine tools. We henceforth want to achieve an order intake of over Euro 1.5 billion for the whole year. Taking the order backlog into account, we anticipate being able to achieve sales revenues of more than Euro 1,370 million. For the entire year we anticipate 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.
In the first quarter, sales revenues reached Euro 320.3 million and were thus 17% above the previous year’s level (Euro 274.1 million). Domestic sales revenues rose by 18% to Euro 141.8 million. International sales revenues increased by 16% to Euro 178.5 million. The export share amounted to 56% (previous year’s quarter: 56%).
In the first quarter order intake rose by 23% to Euro 416.1 million (previous year: Euro 339.2 million). Domestic orders increased by 17% to Euro 182.5 million (previous year’s quarter: Euro 156.1 million). International orders rose by 28% to Euro 233.6 million (previous year’s quarter: Euro 183.1 million). International orders thus accounted for 56% of orders (previous year’s quarter: 54%).
Order intake in the first quarter was above our expectations; it resulted from the increased demand in the German market as well as in the other European and Asian markets. In addition to the successful in-house exhibitions in Pfronten and Seebach, excellent international development played an important part in increased order intake. At 15 international spring trade fairs and in-house exhibitions, including the IMTEX in Bangalore, the TECMA in Mexico City and the Intermold in Seoul, we were able to achieve order intake that surpassed our planned targets.
As at 31 March 2007 the order backlog within the group amounted to Euro 542.6 million (+36%).
The results showed positive development in the first quarter and once again were higher than the corresponding results in the previous year. EBITDA reached Euro 24.1 million (previous year: Euro 18.1 million), EBIT amounted to Euro 16.4 million (previous year: Euro 10.4 million) and EBT rose to Euro 8.7 million (previous year: Euro 2.2 million). GILDEMEISTER reports an annual profit after taxes of Euro 4.8 million (previous year: Euro 1.1 million).
Once again the GILDEMEISTER share developed better than the entire market. Starting from a price of Euro 9.84 on the first day of trading in 2007, the share closed at Euro 12.82 at the end of the first quarter. This represents a share price increase of 30%. In the same period the SDAX rose by 8%. The share price is currently being quoted at Euro 15.61 (4 May 2007).
As at 31 March 2007, GILDEMEISTER had 5,647 employees, of whom 163 were trainees (31 Dec. 2006: 5,558). In comparison with year-end 2006, the number of employees has thus risen by 89. At the end of the first quarter, 3,355 employees (59%) worked for the national companies and 2,292 employees (41%) for our international companies. Personnel expenditure amounted to Euro 87.1 million (previous year’s quarter: Euro 76.3 million). The personnel expenditure quota was 25,1% (previous year’s quarter: 25.8%).
Forecast
GILDEMEISTER will continue its growth trend in the financial year 2007. We intend to expand our global presence by developing future sales markets, in particular those in the growing eastern European national economies such as Russia, Hungary, Bulgaria, Romania an Slovenia. The international trade fairs are expected to provide stimuli. We will present our innovative products to our customers worldwide at 59 trade fairs and in-house exhibitions. The year 2007, however, is marked for GILDEMEISTER by the EMO, which takes place from 17 to 22 September in Hanover. The EMO is important for the industry and its customers for setting the trends. GILDEMEISTER will present more than 60 product exhibits in Hanover, of which 11 are world innovations.
We now want to achieve order intake of more than Euro 1.5 billion for the financial year 2007, based on the good results in the first quarter and our continuing strategy. Taking the order backlog into account, we anticipate being able to achieve sales revenues of more than Euro 1,370 million. For the entire year we anticipate 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.
The annual report 2006 and the first quarter report 2007 provide detailed information on the development of the GILDEMEISTER group in the current financial year.
GILDEMEISTER Aktiengesellschaft
The Executive Board
GILDEMEISTER Aktiengesellschaft were prepared in accordance with the International Financial Reporting Standards (IFRS). The interim financial statements have not been audited.
Notice: We will be pleased to provide you with the complete interim report for the first quarter 2007 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.