Interim Report third quarter 2005 GILDEMEISTER continues to improve performance
Bielefeld. Global demand for machine tools is running at a high level. Course of business at GILDEMEISTER in the third quarter included the successful EMO and continued the trend of the first half year. As at 30 September sales revenues rose to Euro 792.6 million (+8%). Order intake increased to Euro 873.8 million (+8%). The profit situation further improved - EBITDA reached Euro 52.5 million (previous year: Euro 42.7 million); EBIT amounted to Euro 30.8 million (previous year: Euro 20.4 million). EBT was Euro 7.3 million (previous year: Euro -1.4 million). In the third quarter we have achieved a result swing. As at 30 September the group reported an annual profit of Euro 3.5 million (previous year: Euro -4.9 million).
As expected, fresh stimulus was given at the end of the third quarter by the EMO in Hanover, the most important trade fair for machine tools worldwide. With an order volume of Euro 87.4 million and 451 machines sold it has given an impetus to the group. Post-trade fair business will have a positive impact on the fourth quarter. Furthermore, for the entire year 2005 we expect an order intake of more than Euro 1,150 million and we expect sales revenues to be at approximately Euro 1.1 billion. We expect an EBT of around Euro 25 million and 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.
At Euro 274.8 (+12%) million sales revenues in the third quarter exceeded the comparable figure for the previous year (Euro 244.6 million). In the first nine months the value was Euro 792.6 million, which is 8% above the figure for the corresponding period of the previous year (Euro 735.1 million). International sales revenues rose by 15% to Euro 436.7 million. Domestic sales revenues at Euro 355.9 million were at the level of the previous year. The export proportion amounted to 55% (previous year: 52%).
Order intake showed a positive trend in the third quarter with Euro 299.6 million and exceeded the previous year (Euro 269.4 million) by Euro 30.2 million (+11%). In the first nine months order intake rose to Euro 873.8 million, which is Euro 62.0 million or 8% above the corresponding period for the previous year ( Euro 811.8 million). As in the previous quarters of this year the international market contributed in particular to this growth. International orders increased by Euro 48.0 million or 11% to Euro 478.5 million (previous year: Euro 430.5 million), representing a proportion of international orders of 55% (previous year: 53%). In Germany we completed orders in the amount of Euro 395.3 million, which is Euro 14.0 million or 4% more than in the corresponding period of the previous year (Euro 381.3 million).
On 30 September 2005 the order backlog amounted to Euro 383.1 million.
In the third quarter, EBITDA, EBIT and EBT improved when compared with the corresponding figures of the previous year. EBITDA was Euro 18.5 million (previous year: Euro 10.8 million); EBIT reached Euro 11.4 million (previous year: Euro 3.4 million), and EBT amounted to Euro 3.5 million (previous year: Euro -6.4 million), an improvement of Euro 9.9 million in quarterly comparison. On 30 September EBITDA reached Euro 52.5 million (previous year: Euro 42.7 million); EBIT amounted to Euro 30.8 million (previous year: Euro 20.4 million). EBT amounted to Euro 7.3 million (previous year: Euro -1.4 million). On 30 September 2005 the group reports an annual profit of Euro 3.5 million (previous year: Euro -4.9 million).
The GILDEMEISTER share increased in value in the third quarter and followed the general trend of the capital market. At the beginning of the quarter it was quoted at about Euro 5.46; at the end of the quarter it was Euro 6.12. It reached its highest level on 22 August at Euro 6.39. The price of the share is currently Euro 5.98 (4 November 2005).
As at 30 September, there were 5,266 employees, of whom 184 are trainees (30 June 2005: 5,249). This increase in the number of employees by 17 in comparison to the figure at the half-year is due in particular to taking on trainees at the beginning of the new trainee year. Personnel costs amounted to Euro 217.6 million due to the higher number of employees and the increased expenses from standard wage increases and overtime (previous year: Euro 207.7 million). The personnel costs quota decreased to 26.4% (previous year: 27.6%).
Forecast:
GILDEMEISTER expects continued positive development for the fourth quarter due to the demand recently triggered by the EMO. Over the entire year of 2005 we are expecting an order intake of more than Euro 1,150 million. For the financial year 2006 we are planning to increase our order intake by around 5% to over Euro 1.2 billion.
We expect sales revenues for the fourth quarter to exceed the corresponding figure for the previous year (Euro 316.4 million). Based on good international demand and the EMO impact we expect sales revenues over the entire year to be at approximately Euro 1.1 billion. For the financial year 2006 we are planning – comparable to order intake – an increase in sales revenues of around 5%.
GILDEMEISTER continues to pursue the goal of increasing the group’s profitability. Based on the planned increase for sales revenues for the fourth quarter we will continue to improve the result over the entire year. We expect EBT to be around Euro 25 million and 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. Our aim for the financial year 2006 is to continue the positive development.
GILDEMEISTER Aktiengesellschaft
The Executive Board
The Interim 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.