Press Release Financial Reports
06.11.2006|Order intake, sales revenues and results further increased 

Interim Report 3rd quarter 2006 GILDEMEISTER again enhances annual forecast ​​​​​​​

Bielefeld. The strengthened worldwide demand for machine tools continues to grow unabated; this trend is also noticeable in the German market. In the third quarter we achieved further growth in order intake, sales revenues and results. As at 30 September 2006 sales revenues rose by 17% to Euro 924.2 million. Order intake increased by 21% to Euro 1,058.8 million. The results of operations continue to develop positively: EBITDA reached Euro 67.7 million (previous year: Euro 52.5 million), EBIT amounted to Euro 44.3 million (previous year: Euro 30.8 million). EBT rose to Euro 21.2 million (previous year: Euro 7.3 million). As at 30 September 2006 the group reports an annual profit of Euro 11.1 million (previous year: Euro 3.5 million).

The international autumn trade fairs have confirmed the continued high demand for the group’s innovative high-tech products. GILDEMEISTER expects the positive business development to continue in the fourth quarter and can therefore again raise its targets for the current financial year. We now want to achieve an order intake of more than Euro 1,350 million for the whole of 2006; we plan to increase sales revenues to more than Euro 1,250 million. For the financial year we expect an increase in EBT and in the annual profit of more than 50%. We plan to distribute a higher dividend for the current year than for the previous year.

In the third quarter sales revenues of Euro 332.8 million (+21%) exceeded the corresponding previous year’s figure (Euro 274.8 million). In the first nine months of the year sales revenues reached Euro 
924.2 million and were thus 17% higher than the corresponding period in the previous year (Euro 792.6 million). Domestic sales revenues rose by 18% to Euro 421.2 million. International sales revenues increased by 15% to Euro 503.0 million. The export quota amounted to 54% (previous year: 55%).

In the third quarter order intake rose by 17% to Euro 351.6 million (previous year: Euro 299.6 million). Overall order intake increased in the first nine months of the year to Euro 1,058.8 million and was thus 21% or Euro 185.0 million higher than the corresponding period in the previous year (Euro 873.8 million). Domestic orders rose by 22% to Euro 484.2 million (previous year: Euro 395.3 million). International orders remained at a high level and increased by 20% to 
Euro 574.6 million (previous year: Euro 478.5 million). International orders accounted for 54% of orders (previous year: 55%). The increase in orders can be attributed to our innovative products and internationally directed marketing activities in combination with our successful participation in the industry’s most important trade fairs. Our expectations were fully met at the autumn trade fairs: at the AMB in Stuttgart, the IMTS in Chicago and the BIMU in Milan we were able to sell 331 machines with a total value of Euro 84.3 million.

As at 30 September 2006 the order backlog within the group amounted to Euro 467.3 million.

EBITDA, EBIT and EBT improved in the third quarter according to plan compared to the previous year’s corresponding figures. EBITDA amounted to Euro 24.2 million (previous year: Euro 18.5 million); EBIT at Euro 16.1 million was Euro 4.7 million above the previous year’s figure (Euro 11.4 million). EBT amounted to Euro 8.7 million (previous year: Euro 3.5 million). The group reports an annual profit of  Euro 4.8 million in the third quarter (previous year: Euro 1.8 million).

As at 30 September EBITDA reached Euro 67.7 million (previous year: Euro 52.5 million); EBIT amounted to Euro 44.3 million (previous year: Euro 30.8 million). EBT showed further positive development and rose to Euro 21.2 million (previous year: Euro 7.3 million). The group reports an annual profit of Euro 11.1 million as at 30 September 2006 (previous year: Euro 3.5 million). 

The GILDEMEISTER share continued to increase in value throughout the third quarter and followed the general development trend of the capital market. At the start of the quarter the share price was Euro 7.68 and rose to a value of Euro 8.06 at the end of the quarter. The share thus followed the rising trend of the last few months. At present the share is listed at Euro 8.15 (6 November 2006). Current studies may be found on the internet or requested from our Investor Relations team.

As at 30 September 2006, GILDEMEISTER had 5,421 employees, 181 of whom were trainees (30 June 2006: 5,287). Compared to the first six months, the number of employees increased by 134, of whom 55 were trainees who were taken on at the start of the new trainee year. At the end of the third quarter, 3,228 employees (60%) worked for the national companies and 2,193 employees (40%) for our international companies. Personnel expenditure was Euro 233.7 million (corresponding period of the previous year: Euro 217.6 million). The personnel expenditure quota declined further to 24.9% (corresponding period of the previous year: 26.4%).

Forecast:
GILDEMEISTER expects the positive development to continue in the fourth quarter. Our planning is based on the steady consumption of machine tools in all our major sales markets. Taking into consideration the demand triggered following the trade fairs, we now want to achieve an order intake for the whole of 2006 of more than Euro 1,350 million. For the financial year 2007, we are planning to increase our order intake to more than Euro 1.4 billion.

Based on the further increase in our order backlog, we are now planning to increase sales revenues to more than Euro 1,250 million. For the financial year 2007 we are planning to increase sales revenues to more than Euro 1.3 billion in line with order intake.

Earnings development: GILDEMEISTER expects the good business development to continue in the fourth quarter and therefore again can raise its targets for the current financial year. For the financial year 2006 we now expect an increase in EBT and in the annual profit of more than 50%. We plan to distribute a higher dividend for the current year than for the previous year. 

GILDEMEISTER Aktiengesellschaft
The Executive Board


The Interim Consolidated Financial Statements of GILDEMEISTER Aktiengesellschaft were prepared in accordance with the International Financial Reporting Standards (IFRS). The interim financial statements have not been audited.
Please note: We will be pleased to provide you with the compelete interim financial statements for the third quarter 2006 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.