Interim report first 6 months of 2007 GILDEMEISTER reports strong second quarter
Bielefeld. The worldwide demand for machine tools continues unabated dynamic. GILDEMEISTER continued its growth trend also in the second quarter: order intake, sales revenues and results could be increased according to plan. In the first half year order intake reached Euro 857.8 million (+21%); sales revenues rose to Euro 709.2 million (+20%). Profitability once again improved: EBITDA was Euro 60.4 million (previous year: Euro 46.3 million), EBIT reached Euro 45.7 million (previous year: Euro 31.0 million). EBT rose to Euro 30.4 million (previous year: Euro 12.5 million). As at 30 June 2007 the group reports an annual profit of Euro 16.7 million (previous year: Euro 6.3 million).
GILDEMEISTER expects the good business development to continue in the second half of the year. We are anticipating particular stimuli to come from the EMO 2007 in Hanover (17-22 September), the most important trade fair worldwide for machine tools. We now want to achieve order intake of more than Euro 1.6 billion for the whole year. Based on our solid order backlog and the “EMO effect“, we are planning to increase sales revenues to more than Euro 1.4 billion. For the financial year 2007 we are expecting a clear double-digit percentage increase in EBT and in the annual profit. We plan a further increase in the dividend for the current financial year.
As planned, sales revenues in the second quarter of Euro 388.9 million (+21%) exceeded the first quarter’s level (Euro 320.3 million). In the first six months, sales revenues reached Euro 709.2 million and were thus 20% above the previous year’s level (Euro 591.4 million). Domestic sales revenues rose by 17% to Euro 313.3 million. International sales revenues increased by 22% to Euro 395.9 million. The export share amounted to 56% (same period in the previous year: 55%).
In the second quarter order intake rose by 20% to Euro 441.7 million (previous year: Euro 368.0 million). In total, order intake in the first six months increased to Euro 857.8 million and thus was 21% or Euro 150.6 million higher than the same period in the previous year (Euro 707.2 million). Domestic orders increased by 23% to Euro 386.1 million (previous year: Euro 312.7 million). International orders rose by 20% to Euro 471.7 million (previous year: Euro 394.5 million). Orders from abroad accounted for 55% of orders (previous year: 56%).
Order intake in the first half year exceeded our plans; it resulted from the increased demand in the European markets as well as in Germany and Asia. Our innovative products, worldwide focused marketing activities and successful participation in international industry trade fairs have made a significant contribution to the increased order intake. Additionally we were able to conclude orders at 36 trade fairs and in-house exhibitions.
As at 30 June 2007 the order backlog for the group was Euro 595.3 million (+33%).
Profitability once again improved. EBITDA and EBIT rose again in the second quarter according to plan in comparison with the first quarter and also in a year-on-year comparison with the previous year. EBITDA reached Euro 36.3 million (previous year: Euro 28.2 million). EBIT rose to Euro 29.3 million (previous year: Euro 20.6 million).
As of the end of the first six months, EBITDA amounted to Euro 60.4 million (previous year: Euro 46.3 million), EBIT reached Euro 45.7 million (previous year: Euro 31.0 million). EBT rose to Euro 30.4 million (previous year: Euro 12.5 million). GILDEMEISTER reports an annual profit after taxes of Euro 16.7 million (previous year: Euro 6.3 million).
The GILDEMEISTER share developed better than the SDAX also in the second quarter. Following a price of Euro 13.84 on 2 April 2007, the share reached its “All-time-high” at Euro 16.58 (31 July 2007). It closed the second quarter at Euro 14.49 (29 June 2007). The share’s progress since the start of the year corresponds to an increase of 47%. In the same period the SDAX increased 14%. At present, the share is listed at Euro 16.18 (1 August 2007).
As at 30 June 2007 GILDEMEISTER had 5,719 employees, of whom 163 were trainees (31 March 2007: 5,647). In comparison with the first quarter, the number of employees has risen by 72. An increase in personnel took place in both the “Machine Tools” and the “Services” segments; a large proportion of the employees have been hired in Europe. At the end of the first six months, 3,386 employees (59%) worked for the domestic companies and 2,333 employees (41%) for our international companies. Personnel expenditure amounted to Euro 177.8 million (previous year’s period: Euro 155.1 million). The personnel expenditure quota decreased to 24.2% (previous year’s period: 25.3%).
Forecast
GILDEMEISTER continues its growth trend in the financial year 2007. With the opening up of new sales markets in eastern Europe we will further expand our global presence. We will increase our worldwide service capacity and thereby strengthen customer loyalty. GILDEMEISTER will reinforce its market position in the growing area of automation. With the acquisition of WKZ Werkzeugmaschinen GmbH (1 July 2007), whose name will be changed into DMG Automation GmbH, a specialist for integrated solutions with robots for machine tool automation has now joined the group. From EMO on, we are offering automation solutions to our customers from one source. Furthermore, we are increasingly active in the field of renewable energy sources with our components, part systems and complete solar installations. At the beginning of July we concluded the first major order for 150 SunCarriers at a value of approximately Euro 31.5 million; a further major order worth about approximately Euro 31.5 million followed by end of July.
The second half of 2007 is marked for GILDEMEISTER by the EMO. This most important trade fair worldwide for machine tools is trend-setting for our industry. For GILDEMEISTER the EMO offers an ideal platform to present its product range, together with all its innovations, to a large number of industry experts. We will present 70 exhibits at the EMO, 14 of which are world innovations. In 2007 we will be represented at a total of 56 international trade fairs and in-house exhibitions.
Based on our good results in the first six months and our ongoing planning, we now want to achieve order intake of more than Euro 1.6 billion in the financial year 2007. On the basis of our solid order backlog and the expected “EMO effect”, we are planning to increase sales revenues to more than Euro 1.4 billion. For the financial year 2007 we are expecting a clear 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 Aktiengesellschaft
The Executive Board
Consolidated Financial Statements of GILDEMEISTER Aktiengesellschaft was drawn up in accordance with the International Financial Reporting Standards (IFRS). The Interim Report has not been audited.
Please note: We will be glad to send you the complete interim report of the first six months 2007 on 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.