Interim Report 1st six months 2005 GILDEMEISTER increases order intake, sales and results
Bielefeld. Global demand for machine tools developed as expected. Course of business at GILDEMEISTER progressed on schedule over the first six months of 2005. Sales revenues rose to Euro 517.8 million (+6%). Order intake increased to Euro 574.2 million (+6%), confirming the positive trend. EBITDA reached Euro 34.0 million (previous year: Euro 31.9 million); EBIT amounted to Euro 19.4 million (previous year: Euro 17.0 million). EBT was Euro 3.8 million (previous year: Euro 5.0 million). For the six months ended 30 June, the group reported an annual profit of Euro 1.7 million (previous year: Euro 0.7 million).
GILDEMEISTER confirms its forecasts for the financial year 2005. We expect fresh stimulus from the EMO 2005 (14 - 21 September) in Hanover, the most important trade fair for machine tools worldwide. Over the entire year we are planning for an order intake of more than Euro 1,150 million. Based on our good order backlog and the expected "EMO impact", we expect to increase sales revenues to around Euro 1.1 billion. For the financial year 2005 we expect EBT to exceed Euro 25 million and we expect an annual profit of more than Euro 10 million. If business and performance develop as planned, we intend to resume the distribution of a dividend for the current financial year.
In the second quarter, sales revenues amounting to Euro 278.2 million (+16%) exceeded the figures for the first three months (Euro 239.6 million) as planned. In the first six months, sales revenues amounted to Euro 517.6 million, which is 6% above the figure for the previous year (Euro 490.5 million). International sales revenues rose by 18% to Euro 297.5 million. Domestic sales revenues reached Euro 220.3 million (-7%). The exports quota amounted to 57% (corresponding period of the previous year: 52%).In the second quarter, order intake amounting to Euro 293.2 million developed according to plan. In the first six months of the year, order intake totalled Euro 574.2 million, thereby exceeding the figure for the previous year's period (Euro 542.4 million) by Euro 31.8 million or 6%. A good level of international transactions contributed to this development. However, contrary to the current industry trend, we were able to slightly increase our order intake in Germany. International orders increased by 9% to Euro 322.7 million (previous year's six months: Euro 295.0 million). The international share thereby amounted to 56% (previous year: 54%). Domestic orders amounted to Euro 251.5 million, which is 2% more than the figure for the corresponding period of the previous year (Euro 247.4 million).
On 30 June 2005, the group's order backlog amounted to Euro 378.2 million.
In the second quarter, both EBITDA and EBIT improved when compared with the first quarter and with the corresponding figures for the preceding year. EBITDA was Euro 21.1 million (previous year: Euro 20.4 million) and EBIT of Euro 13.6 million exceeded the figure for the previous year (Euro 12.7 million) by Euro 0.9 million. EBT amounted to Euro 5.6 million (previous year: Euro 6.8 million). At the end of the first six months EBITDA reached Euro 34.0 million (previous year: Euro 31.9 million); EBIT amounted to Euro 19.4 million (previous year: Euro 17.0 million). Due to an increase in financial charges, EBT, amounting to Euro 3.8 million, remained below the corresponding figure for the previous year (Euro 5.0 million). On 30 June 2005 the group reported an annual profit of Euro 1.7 million (previous year: Euro 0.7 million).
In the second quarter performance of the GILDEMEISTER share was stable. Its lowest value was quoted at Euro 5.27 (5 May 2005). At the end of the quarter, its price was Euro 5.46 (30 June 2005). Our security is currently quoted at Euro 6.24 (18 August 2005).
On 30 June 2005, GILDEMEISTER had 5,249 employees, 146 of whom were trainees (31 March 2005: 5,234). The number of employees thereby increased slightly by 15 in the second quarter of the current financial year. Focal point of the staff consolidation was the development and expansion of our newly established sales and service companies in Russia and in Turkey and the continued increase in the number of personnel at our Pleszew production facility. In comparison to the end of the financial year 2004, the number of employees increased by 75. This increased personnel requirement arose primarily in the "Services" segment and was due to the increased requirements of our customers throughout the world in line with current demand trends. Due to the greater number of staff and increased expenses arising from increases in standard wages and extra-work, personnel costs amounted to Euro 147.5 million (corresponding period of the previous year: Euro 139.7 million).
GILDEMEISTER confirms its forecasts for the financial year 2005. For the entire year we are planning for an order intake of more than Euro 1,150 million. This will be supported by the EMO in Hanover that will take place in September. This most important of trade fairs worldwide plays a trendsetting role for the machine tool industry and its customers and provides an ideal forum for GILDEMEISTER to present its production programme featuring all its innovative new products. Based on our good order backlog and the expected "EMO impact", we expect to increase sales revenues to around Euro 1.1 billion. Due to the optimisation of our cost and process management, we expect a further strengthening of our profitability. In the third quarter, we are planning for a noticeable earnings swing. For the financial year 2005 we expect EBT to exceed Euro 25 million and we expect an annual profit of more than Euro 10 million. If business and performance develop as planned, we intend to resume the distribution of a dividend for the current financial year.
The Executive Board
Consolidated Financial Statements of GILDEMEISTER Aktiengesellschaft were prepared in accordance with International Financial Reporting Standards (IFRS). The Interim Report has not been audited.
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.