Demag Cranes reports successful business performance in its third quarter
Düsseldorf, 09. August 2011
- Group order intake increases 14.1 per cent on previous year’s figure
- Group revenue up 26.9 per cent compared to previous year’s quarter
- Group operating EBIT grows significantly by 86.5 per cent year on year
- Outlook for financial year 2010/2011: Group revenue of some EUR 1.06 billion expected
Demag Cranes Group continues its success story in the third quarter of its financial year 2010/2011, holding its growth trajectory from preceding quarters. Key reporting indicators are well up once again compared with the equivalent figures a year earlier. Demag Cranes AG’s CEO, Aloysius Rauen, emphasises: “We have been able to continue our growth trend. We are pleased with our business performance and are on target with respect to our guidance figures for the full year.”
Group order intake increases 14.1 per cent on previous year’s figure
In the third quarter of financial year 2010/2011, Demag Cranes Group generated order intake of EUR 277.3 million, 14.1 per cent up on the comparative figure for the previous year (Q3 2009/2010: EUR 242.9 million). On a nine-month basis, the Group generated order intake of EUR 839.1 million, growing 30.5 per cent on the comparable period of the previous year. The Industrial Cranes and Port Technology segments contributed particularly strongly to this growth.
The Group order book was 15.7 per cent higher than the previous year’s reporting date and stood at EUR 394.5 million as at 30 June 2011 (30 June 2010: EUR 340.9 million).
In the Industrial Cranes segment, order intake was boosted by 11.1 per cent from EUR 113.3 million in the previous year’s quarter to EUR 125.9 million in the third quarter of financial year 2010/2011. Almost all product segments contributed to this development. Largely driven by strong business performance in the first and second quarters of the financial year, the nine-month order intake, at EUR 392.9 million, was no less than 33.7 per cent higher than the previous year’s period (first nine months of 2009/2010: EUR 293.8 million).
The Industrial Cranes segment order book stood at EUR 234.4 million at the 30 June 2011 reporting date (30 June 2010: EUR 195.5 million), marking a rise of 19.9 per cent.
We also generated substantially higher order intake year on year in the Port Technology segment, both in the third quarter and in the first nine months. Third-quarter order intake came to EUR 64.5 million, a 24.9 per cent improvement on the previous year’s figure (Q3 2009/2010: EUR 51.6 million). In the period October 2010 to June 2011, we achieved 48.6 per cent growth in orders with order intake of EUR 187.8 million compared with EUR 126.4 million in the same period of the previous year. As in preceding quarters, the positive trend reflected higher demand for Mobile Harbour Cranes and services.
The Port Technology segment order book amounted to EUR 88.1 million as at 30 June 2011, up 6.3 per cent on the 30 June 2010 figure (EUR 82.8 million).
Order intake in the Services segment rose by 11.3 per cent from EUR 78.0 million in the previous year’s quarter to EUR 86.9 million in the third quarter of financial year 2010/2011. Compared with the first nine months of financial year 2009/2010, order intake in the nine-month reporting period surged by 15.9 per cent from EUR 223.0 million to EUR 258.5 million. Higher capacity utilisation and the resulting increased utilisation of customers’ crane equipment also boosted demand for our services.
The Services segment order book as at 30 June 2011 came to EUR 72.0 million, up from EUR 62.5 million as at 30 June 2010. The order book thus grew by 15.1 per cent.
Group revenue up 26.9 per cent compared to previous year’s quarter
Group revenue in the third quarter of financial year 2010/2011 was EUR 260.3 million, 26.9 per cent higher than in the previous year’s quarter (Q3 2009/2010: EUR 205.1 million). Compared with the first nine months of financial year 2009/2010, revenue in the nine-month reporting period rose by 16.4 per cent from EUR 641.1 million to EUR 746.1 million.
The Industrial Cranes segment generated revenue of EUR 123.7 million in the third quarter of financial year 2010/2011, 22.1 per cent up on the previous year’s quarter (Q3 2009/2010: EUR 101.3 million). On a nine-month basis, segment revenue grew by 6.1 per cent from EUR 316.0 million to EUR 335.1 million. The positive trend reflected larger volumes of orders for Process and Standard Cranes in preceding quarters, the revenue from which was recognised during the reporting period.
In the Port Technology segment, we were able to generate revenue of EUR 55.2 million, which represents a substantial 86.3 per cent increase on the previous year’s quarter (Q3 2009/2010: EUR 29.6 million); the low figure for the previous year resulted from revenue being postponed to the fourth quarter of financial year 2009/2010. Comparing the first nine months of financial year 2010/2011 with the same period of the previous year, revenue grew by 54.4 per cent from EUR 113.8 million to EUR 175.7 million. This upsurge was driven by revenue from sales of Mobile Harbour Cranes and services.
The Services segment also recorded further growth in revenue. Revenue in the third quarter of financial year 2010/2011 came to EUR 81.5 million, 9.8 per cent up on the previous year’s quarter (Q3 2009/2010: EUR 74.2 million). Spare parts business was once again a major contributor to this growth. Compared with the first nine months of financial year 2009/2010, revenue improved in the nine-month reporting period by 11.3 per cent from EUR 211.3 million to EUR 235.3 million.
Group operating EBIT grows significantly by 86.5 per cent year on year
At Group level, we generated operating EBIT of EUR 18.7 million in the third quarter of financial year 2010/2011. This represents a marked 86.5 per cent rise on the figure for the previous year’s quarter (EUR 10.0 million). On a nine-month basis, operating EBIT improved by 54.0 per cent from EUR 29.7 million to EUR 45.8 million.
In line with our higher revenue, we generated operating EBIT of EUR 3.1 million in the Industrial Cranes segment in the third quarter of financial year 2010/2011, up from minus EUR 1.6 million in the previous year’s quarter. In the first nine months of the financial year, operating EBIT grew to EUR 2.4 million, largely due to the positive trend in the third quarter (first nine months of 2009/2010: EUR 1.3 million).
In the Port Technology segment, operating EBIT climbed from minus EUR 0.8 million in the third quarter of financial year 2009/2010 to EUR 1.0 million in the reporting period. Compared with the first nine months of financial year 2009/2010, we boosted operating EBIT from minus EUR 3.8 million to EUR 6.0 million in the same period of 2010/2011. The main factors here were significantly higher revenue combined with improved margins and better production capacity utilisation at our Düsseldorf-Benrath factory.
Operating EBIT in the Services segment climbed slightly compared with the third quarter of financial year 2009/2010 from EUR 15.3 million to EUR 15.8 million. On a nine-month basis, operating EBIT rose from EUR 39.9 million to EUR 44.2 million.
Outlook for financial year 2010/2011: Group revenue of some EUR 1.06 billion expected
Expectations about the future course of the global economy still carry some geopolitical uncertainty. At present, however, we anticipate global economic growth to continue, primarily driven by the emerging markets and among these notably the BIC countries (Brazil, India and China). The overall economic uncertainties, notably due to the debt crisis in Europe and the impending US insolvency, make it increasingly difficult to give reliable long-term projections for ongoing economic trends and associated demand for our products.
From today’s perspective, we plan Group revenue of approximately EUR 1.06 billion in the current financial year (previous guidance: EUR 1.02 billion to EUR 1.05 billion). For financial year 2010/2011 we anticipate an operating EBIT margin of some 6.4 per cent (previous guidance: 6.1 per cent to 6.5 per cent; financial year 2009/2010: 5.8 per cent).
No later than financial year 2012/2013, Group revenue is forecast to grow to EUR 1.3 billion and therefore to exceed the record level reached in financial year 2007/2008 (EUR 1,225.8 million). There are plans for new emerging market product families and other factors to deliver another sharp jump in revenue in financial year 2014/2015 to approximately EUR 1.7 billion. Subject to meeting our revenue target, we expect the Group operating EBIT margin to be above ten per cent by as early as financial year 2012/2013. The operating EBIT margin is set to climb again sharply with significant projected revenue growth in financial year 2014/2015.
About Demag Cranes
The Demag Cranes Group is one of the world’s leading suppliers of industrial cranes and crane components, harbour cranes and port automation technology. Services, in particular maintenance and refurbishment, are another key element of the Group’s business activities. The Group is divided into the business segments Industrial Cranes, Port Technology and Services and has strong and well-established Demag and Gottwald brands. Demag Cranes sees its core competence in the development and construction of technically sophisticated cranes and hoists as well as automated transport and logistics systems in ports and terminals, the provision of services for these products and the manufacture of high-quality components.
As a global supplier, Demag Cranes manufactures in 16 countries on five continents and operates a worldwide sales and service network that is present in over 60 countries through its subsidiaries such as Demag Cranes & Components GmbH and Gottwald Port Technology GmbH, agencies and a joint venture. In financial year 2009/2010, the Group, with its 5,711 employees, generated revenue of EUR 931.3 million. Since the end of June 2006, the Demag Cranes share (WKN: DCAG01) has been listed in the Prime Standard of the Frankfurt Stock Exchange and is traded on various indices including the MDAX®.
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Conditions for forward-looking statements
This press release contains forward-looking statements relating to the business, financial performance and earnings of Demag Cranes AG and its subsidiaries and associates. Forward-looking statements are based on current plans, estimates, projections and expectations and are therefore subject to risks and uncertainties, most of which are difficult to estimate and which in general are beyond the control of Demag Cranes AG. Consequently, actual developments as well as actual earnings and performance may differ materially from those which are explicitly or implicitly assumed in the forward-looking statements. Demag Cranes AG does not intend or accept any obligation to publish updates of these forward-looking statements.