Germany: Demag Cranes Announces Successful Financial Year

Demag Cranes Announces Successful Financial Year

The Demag Cranes Group brought financial year 2010/2011 to a successful close. Not least thanks to factors including the economic recovery, demand for products and services noticeably improved overall. Group order intake increased by 23.1 % compared with financial year 2009/2010 to EUR 1,121.2 million. At EUR 1,062.3 million, Group revenue was 14.1 % up on the prior-year level and slightly above the guidance of EUR 1,060 million. The Group’s operating EBIT amounted to EUR 75.7 million, up 39.7 % on the prior year.

The operating EBIT margin stood at 7.1 %,exceeding the guidance of approximately 6.4 %. Demag Cranes thus substantially improved on keyperformance indicators compared with the prior year and satisfied its forecast – last updated in its third quarter – in every respect, for Group revenue and even surpassing it in terms of operating EBIT. Based on the positive performance of the business in the past financial year, the Management Board and Supervisory Board have jointly decided to propose a dividend of EUR 0.78 per share for financial year 2010/2011 at the Annual General Meeting. This represents a 30% increase on the previous year.

Aloysius Rauen, CEO of Demag Cranes AG emphasises: “We rigorously implemented our growth strategyin financial year 2010/2011 and comfortably achieved our guidance. Demag Cranes is in an excellent position as a result to attain our ambitious revenue and earnings targets in the financial years ahead.”

 Group order intake up 23.1 % on previous year

The Demag Cranes Group generated order intake of EUR 1,121.2 million in financial year 2010/2011. This represents an increase of 23.1 % over financial year 2009/2010 (EUR 910.6 million). All segments contributed to the healthy trend in orders. The Group order book stood at EUR 361.7 million as at 30 September 2011, an improvement of 18.0 % from the figure on the previous year’s reporting date (EUR 306.6 million).

In the Industrial Cranes segment, order intake was up sharply by 24.9 % to EUR 514.8 million in financial year 2010/2011. The prior-year figure was EUR 412.2 million. Both crane and components business rallied strongly as a result of the general economic recovery. The Industrial Cranes segment order book came to EUR 201.5 million as at 30 September 2011, compared with EUR 180.0 million at 30 September 2010.

The Port Technology segment can also look back on very positive order development: compared with financial year 2009/2010, the value of orders received rose by 35.7 % from EUR 197.0 million to EUR 267.3 million. Mobile Harbour Cranes, which can be used for various applications, accounted for the major part of order intake, but demand for port technology services also increased sharply again in the past financial year. For the first time since the financial and economic crisis, Demag Cranes received another order for 22 Automated Guided Vehicles (AGVs) from long-standing customer Europe Container Terminals (ECT) in Rotterdam. The Port Technology segment order book came to EUR 105.6 million as at 30 September 2011 (30 September 2010: EUR 76.9 million).

Greater capacity utilisation and the associated increased use of crane systems by customers also led to an improvement in the order situation in the Services segment. Compared with financial year 2009/2010, order intake was up 12.4 % from EUR 301.5 million to EUR 339.1 million. Alongside standard services such as fault elimination, maintenance and repairs, spare parts were in greater demand than in the prior year. The Services segment order book stood at EUR 54.6 million as at 30 September 2011, compared with EUR 49.6 million at 30 September 2010.

 Group revenue grows 14.1 % year on year

Group revenue was up 14.1% in the past financial year to EUR 1,062.3 million (financial year 2009/2010: EUR 931.3 million). All segments contributed to this increase, especially the Port Technology segment.

The Industrial Cranes segment generated revenue of EUR 489.8 million, 11.1 % more than in financial year 2009/2010 (EUR 440.8 million). In particular, this figure reflected the healthy intake of orders for Process Cranes and Standard Cranes in the previous quarters, which are recognised as revenue after an average production time of six to twelve months. Component sales also contributed to this positive development.

The Port Technology segment saw revenue grow by 25.8 % to EUR 239.0 million. The main revenue drivers were Mobile Harbour Cranes and services.

In financial year 2010/2011, the Services segment generated revenue of EUR 333.5 million, an increase of 10.9% over the prior-year figure (financial year 2009/2010: EUR 300.6 million). Spare parts business and general field service were principally responsible for this revenue growth.

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Dredging Today Staff, November 30, 2011; Image: demagcranes-ag