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Dürr beats earnings targets

Published on 2007-02-16. Author : SpecialChem

Stuttgart -- Dürr achieved the turnaround in 2006. On the basis of preliminary figures (IFRS) the company generated an operating profit (EBIT before restructuring costs) of € 39 million, an increase of approximately € 35 million versus the previous year, on sales of € 1,361 million (2005: € 1,400.6 million). Group net income came to € 7 million (2005: € 4.3 million).

Ralf W. Dieter, CEO of Dürr AG, commented: "As announced, 2006 was a year of transition. We achieved our clear objective of a substantial increase in operating profit thanks to the dedicated effort of the Dürr team. The improvements through the group program FOCUS have made themselves felt."

Incoming orders developed very encouragingly and were above target, with growth of 20%; they totaled € 1,459 million (2005: € 1,216.9 million). The growth was driven by increases in the systems business (paint and assembly systems), especially in Eastern Europe and Asia, as well as a good order situation in the mechanical engineering business (painting robots, cleaning and balancing equipment). The services business, too, was expanded significantly through the group-wide FOCUS program, and now contributes 26% of group sales.

For the first time in several quarters Dürr achieved a positive net cash flow from operating activities of € 70 million in the fourth quarter of 2006. At € 105 million, net financial debt on December 31, 2006 was about € 20 million higher than at the end of 2005 owing to the cash outflows for FOCUS; however, Dürr had originally expected net financial debt of € 150 million. The equity ratio improved to 23% at the end of 2006, up from 20.9% at the end of 2005.

Outlook

The level of requests for quotation continues to be encouraging. From today's vantage point, it looks as if order intake in 2007 will be at least on a par with the high 2006 level. In view of the good order backlog at the end of 2006 Dürr expects sales growth of between 5% and 10% in 2007. In addition, FOCUS effects will have a positive impact on earnings and cash flow. We aim to distribute an appropriate dividend for 2007.

Following approval by the Supervisory Board, the full financial statements for 2006 will be presented at the Annual Press Conference in Stuttgart on March 29, 2007.

The Dürr Group is one of the world's leading suppliers of products, systems, and services for automobile manufacturing. Its range embraces important stages in the vehicle production process. As a systems supplier, Dürr designs and builds paint shops and final assembly plants. Dürr also supplies cleaning and filtration equipment used in the production of engine and transmission components as well as balancing and diagnostic systems for vehicle components. Business with automobile manufacturers and their suppliers accounts for about 90% of consolidated sales. Other important customer groups are the mechanical engineering sector and the chemical, pharmaceutical, coating, and aviation industries.

Source: The Dürr Group


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