Press Release Financial Reports
27.11.2007|Order intake, sales revenues, results rise again in third quarter

Interim Report 3rd Quarter 2007 GILDEMEISTER continues solid growth trend ​​​​​​​

Bielefeld. The worldwide demand for machine tools continues to run at a high level. Also the success achieved at the EMO in Hanover is contributing to the good business development of GILDEMEISTER. In the third quarter we achieved further growth in order intake, sales revenues and results. As at 30 September 2007 order intake rose to Euro 1,403.7 million (+33%); sales revenues increased to Euro 1,074.9 million (+16%). Profitability continued to develop positively: EBITDA reached Euro 93.9 million (previous year: Euro 70.9 million), EBIT amounted to Euro 71.1 million (previous year: Euro 47.5 million). EBT rose to Euro 48.5 million (previous year: Euro 21.2 million). The group reports annual profit of Euro 27.2 million as at 30 September 2007 (previous year: Euro 11.1 million).

As expected new impetus came from the most important trade fair worldwide for machine tools, the EMO. The post-trade fair business will also have a positive influence on the fourth quarter and provides important impetus for the financial year 2008. Due to its good business development GILDEMEISTER can once again raise its targets for 2007. For the whole year we are now expecting order intake of more than Euro 1.8 billion and sales revenues of over Euro 1.5 billion. On the basis of the planned increase in sales revenues, we are now expecting a rise in EBT and in the annual profit of more than 60%. We plan an increase in the dividend for the current financial year.

In the third quarter sales revenues of Euro 365.7 million (+11%) exceeded those of the previous year (Euro 332.8 million). In the first nine months sales revenues amounted to Euro 1,074.9 million and were thus 16% higher than the same period in the previous year (Euro 924.2 million). Domestic sales revenues rose by 17% to Euro 493.5 million. International sales revenues increased by 16% to Euro 581.4 million. The export share amounted to 54% (previous year: 54%). 

In the third quarter order intake rose by 55% to Euro 545.9 million (previous year: Euro 351.6 million). Overall in the first nine months, order intake rose to Euro 1,403.7 million and thus was 33% or Euro 344.9 million higher than the previous year (Euro 1,058.8 million). Domestic orders increased by 30% to Euro 628.1 million (previous year: Euro 484.2 million). International orders rose 35% to Euro 775.6 million (previous year: Euro 574.6 million). The export quota accounted for 55% of orders (previous year: 54%). On the one hand, the considerable increase in order intake in the third quarter resulted from the successful EMO. GILDEMEISTER achieved the highest order intake from a trade fair so far in the company’s history with 526 machines sold at a value of Euro 162.6 million. The 14 world premieres and the new machine design were all well received by the international trade visitors. Equally important for the post-trade fair business and for the financial year 2008 are the 9,108 quotations that were newly generated. On the other hand, a significant contribution was made by the increase in order intake at the “SunCarrier” division of a+f GmbH, which is successfully establishing itself in the trend-setting market of renewable energy with complete solar installations. In the third quarter a+f received its first major orders for a value of Euro 63.0 million for tracker systems, which for the most part will contribute to sales revenues and a positive result in the financial year 2008. The rise in order intake of the group in the first nine months results from the increase in demand in Germany, as well as in the European and Asian markets. 

On 30 September 2007 the order backlog within the group amounted to Euro 775,5 million.

The results of operations at the GILDEMEISTER group continues to develop positively and improved according to plan compared to the previous year’s comparative figures. In the third quarter EBITDA reached Euro 33.5 million (previous year: Euro 24.6 million); EBIT amounted to Euro 25.4 million (previous year: Euro 16.5 million). EBT rose to Euro 18.1 million (previous year: Euro 8.7 million). The group reports annual profit of Euro 10.5 million (previous year: Euro 4.8 million).

As at 30 September 2007 EBITDA reached Euro 93.9 million (previous year: Euro 70.9 million), EBIT amounted to Euro 71.1 million (previous year: Euro 47.5 million). EBT rose to Euro 48.5 million (previous year: Euro 21.2 million). The group reports annual profit of Euro 27.2 million as at 30 September 2007 (previous year: Euro 11.1 million). 

The GILDEMEISTER share continued its positive development in the third quarter. Following a price of Euro 14.60 at the start of the third quarter (2 July 2007), the share closed the reporting period at Euro 19.48 (28 September 2007). This corresponds to an increase in value of 33%; since the start of the year the share has achieved a rise in value of 98%. In comparison, the SDAX has only achieved a rise of 1% over the course of the year. The share is currently quoted at Euro 21.65 (6 November 2007). Earnings per share increased to Euro 0.63 (previous year: Euro 0.26).

As at 30 September 2007, GILDEMEISTER had 5,888 employees, of whom 222 were trainees (30 June 2007: 5,719). Compared to the first six months, the number of employees increased by 169; at the start of the new training year 65 trainees were recruited. Compared with the 31 December 2006, the total number of employees has risen by 330. The additional personnel requirement arose in both the “Machine Tools” and “Services” segments. At the end of the third quarter, 3,519 employees (60%) worked for the national companies and 2,369 employees (40%) for our international companies. Personnel costs amounted to Euro 267.2 million (previous year’s period: Euro 233.7 million). The personnel expenditure quota decreased to 23.9% (previous year’s period: 24.9%).

Forecast

GILDEMEISTER expects the good business development to continue in the fourth quarter of the year. Our planning is based on stable demand for machine tools in nearly all the major sales markets, in particular in Germany and in the European markets, as well as in Asia (China and India). Moreover GILDEMEISTER will consistently expand its business activities in the field of renewable energy sources and will extend its sales presence to other markets. 
Due to its good business development GILDEMEISTER can once again raise its targets for 2007 and achieve the best financial year so far in 137 years. Taking into account the post-trade fair business, we are now expecting order intake for the whole year of more than Euro 1.8 billion. For the financial year 2008 we are planning once again to increase order intake to about Euro 1.9 billion. We intend our growth to be organic and to be strongly driven by our own innovative strength.

For the fourth quarter we are planning sales revenues to develop above the previous year’s level (Euro 404.8 million). Due to the good order backlog we are now expecting to increase sales revenues for the whole year to more than Euro 1.5 billion. For the financial year 2008, in line with order intake, we are planning to increase sales revenues to more than Euro 1.6 billion.

Earnings development: As expected new impetus came from the EMO. The post-trade fair business will also have a positive influence on the fourth quarter and provides important impetus for the financial year 2008. On the basis of the planned increase in sales revenues, we expect a rise of more than 60% in EBT and in the annual profit. We plan an increase in the dividend for the current year. Our goal for the financial year 2008 is to continue this positive development. 

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 has not been audited.

Please note:
We will be glad to send you the complete interim report of the 3rd quarter 2007 on 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.

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