Provisional figures for the financial year 2006 GILDEMEISTER doubles annual profit
Bielefeld. GILDEMEISTER has achieved its goals for the financial year 2006. Sales revenues amounted to Euro 1,329.0 million; an increase of 18% (previous year: Euro 1,125.9 million). Order intake of Euro 1,442.9 million (+23%) once again surpassed that of the previous year (Euro 1,170.7 million). The earning power further increased: EBITDA reached Euro 114.9 million (previous year: Euro 90.2 million). EBIT rose to Euro 82.4 million (previous year: Euro 58.8 million) and EBT to Euro 47.4 million (previous year Euro 25.4 million). Group annual profit doubled to Euro 27.1 million (previous year: Euro 13.5 million). Earnings per share rose to Euro 0.63 (previous year: Euro 0.32). All figures are provisional and are subject to an audit of the financial statements. We will propose a dividend distribution in the amount of Euro 0.20 (previous year: Euro 0.10) for the financial year 2006 to the annual general meeting of shareholders on 25 May 2007.
The increased demand for machine tools has had a positive impact on sales revenues development. Sales revenues reached Euro 1,329.0 million (previous year: Euro 1,125.9 million); this corresponds to an increase of 18% or Euro 203.1 million, respectively. In the fourth quarter sales revenues amounted to Euro 404.8 million and thus were 21% higher than in the same period for the previous year (Euro 333.3 million). Domestic sales revenues rose by 22% to Euro 612.8 million. International sales revenues increased by 15% to Euro 716.2 million. The export share amounted to 54% (previous year: 55%). Machine tools accounted for 69% of sales revenues (previous year: 70%); the Service business increased to 31% (previous year: 30%).
Order intake of Euro 1,442.9 million (+23%) again exceeded the previous year (Euro 1,170.7 million). In the fourth quarter order intake reached Euro 384.1 million (previous year: Euro 296.9 million). Both domestic orders of Euro 648.7 million (+25%) and international orders of Euro 794.2 million (+22%) accounted for the increase in order intake. International orders represented a share of 55% (previous year: 56%). In Germany we have clearly made gains in order intake. In Europe buoyant business further strengthened our competitive position. In America orders have developed in line with expectations. In Asia we had higher-than-average success.
As at 31 December 2006 the order backlog for the group was Euro 446.7 million.
The earning power further increased. EBITDA reached Euro 114.9 million (previous year: Euro 90.2 million). EBIT rose to Euro 82.4 million (previous year: Euro 58.8 million) and EBT to Euro 47.4 million (previous year: Euro 25.4 million). Group annual profit doubled to Euro 27.1 million (previous year: Euro 13.5 million). The earnings per share rose to Euro 0.63 (previous year: Euro 0.32). All figures are subject to an audit of the financial statements. We will propose a dividend in the amount of Euro 0.20 to the annual general meeting.
The GILDEMEISTER share gained 63% and performed better than the SDAX (+31%). Market capitalisation rose by Euro 160.2 million to Euro 414.0 million. The shares started the stock market year 2006 at a share price of Euro 5.96 (2 January 2006). From the middle of the year the share price rose continuously. The closing price was Euro 9.56 (29 December 2006). This upwards trend also continued at the start of 2007. Currently the share is quoted at Euro 10.90 (12 February 2007).
As at 31 December 2006 GILDEMEISTER had 5,558 employees (previous year: 5,272), 191 of whom were trainees. The need for additional personnel of 296 employees arose both in the “Services“ and in the “Machine Tools” segment. In order to meet the growing service requirements of our customers, we have further expanded our businesses particularly in Asia and Europe. Due to the increased capacity utilisation, additional employees were hired at the production sites in Pfronten and in Shanghai. At the end of the year 3,302 employees (59%) were working at the domestic and 2,256 employees (41%) at the international companies. Personnel expenditure was Euro 320.2 million (previous year: Euro 295.9 million); the personnel expenditure quota decreased to 24.1% (previous year: 25.8%).
Current forecasts 2007 for mechanical engineering are assuming further growth. The German Engineering Federation (VDMA) expects an increase in production of 4% in 2007. For machine tools the German Machine Tool Builders’ Association (VDW) is estimating a worldwide growth in consumption of 5%. In Germany the VDW is expecting growth of 8%.
GILDEMEISTER has made a successful start to the new financial year. In 2007 we plan to achieve again the same high order intake of the previous year, if not exceed it. Taking into account the order backlog, we are aiming for sales revenues of over Euro 1,370 million. For the financial year 2007 we are expecting a double-digit percentage increase in EBT and in the annual profit. We are planning a further increase in dividend for the current financial year.
We are expecting particular stimulus to come from the international industry trade fairs: the most important machine tool trade fair in Asia is the CIMT in Peking, where GILDEMEISTER will be presenting 19 exhibits from 9 to 15 April. From 17 to 22 September the most important trade fair worldwide for machine tools – the EMO – will be taking place in Hanover. The EMO plays a trend-setting role for the industry and its customers. GILDEMEISTER will present more than 60 exhibits in Hanover, of which 12 are world premieres. Our technical know-how combined with our many years’ experience provide the basis for further growth. GILDEMEISTER shall permanently be the leader in the market and in innovations of all globally active suppliers of cutting machine tools. In the financial year 2007 we will take another step in this direction.
The Executive Board
The figures are subject to an audit of the financial statements. The financial statements were prepared in accordance with International Financial Reporting Standards (IFRS).
On 29 March 2007, at the occasion of the press conference on financial statements, GILDEMEISTER will be publishing detailed information on the financial year 2006 and the forecast for 2007.
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.