GILDEMEISTER plans to be in the black for 2009
Machine tools still in crisis
Bielefeld. The entire economic situation continues to be affected by the recession. The global machine tool market is suffering its historically worst crisis. In Germany, consumption in the first nine months of the year slumped by 66%. GILDEMEISTER, too, clearly felt the effects of a strong reluctance to purchase. Order intake, sales revenues and earnings continued to decline in the third quarter. Order intake as at 30 September amounted to Euro 818.2 million (previous year: Euro 1,592.8 million). Sales revenues fell to Euro 847.7 million (previous year: Euro 1,363.2 million). In the third quarter EBT at Euro -8.1 million was negative for the first time since the first quarter 2005. Overall profitability remained positive: in the first nine months EBITDA reached Euro 45.5 million (previous year: Euro 137.2 million), EBIT amounted to Euro 23.8 million (previous year: Euro 114.8 million). EBT was positive at Euro 7.0 million (previous year: Euro 91.6 million). As at 30 September 2009, the group reported earnings after tax of Euro 4.5 million (previous year: Euro 57.6 million).
A radical improvement cannot be expected during the remaining course of the financial year 2009. We expect order intake for the fourth quarter 2009 to develop above the previous quarters. First positive impetus at the beginning of the fourth quarter came from the industry highlight, the EMO 2009 in Milan: with order intake of Euro 52.6 million and 254 machines sold our expectations were met.
The machine tool business is actually suffering greatly from the lack of investment by our customers. The Services business is also in decline, however, it is comparatively satisfactory. We have successfully established the new business area of solar technology.
Our business model and our clear corporate strategy have proven their worth. The timely cost reduction measures will cushion the effects of the economic development. With our innovative range of products for a broad mix of customers and industries, as well as our global presence, we will overcome the crisis. The cooperation with Mori Seiki is generating important advantages for our international customers and is increasing the efficiency of GILDEMEISTER.
As announced, for the financial year 2009 we are expecting a clear downwards trend in order intake, sales revenues and earnings. Despite the continuing recession and the poor demand for machine tools worldwide, we continue to expect order intake of about Euro 1.2 billion. Sales revenues will be approximately Euro 1.2 billion. As a result of the measures we have initiated, we are assuming positive earnings (EBIT) overall.
Sales revenues in the third quarter reached Euro 235.0 million and were thus clearly below the previous years figure (Euro 511.7 million). This trend was a result of the strong decline in order intake. In the first nine months, sales revenues amounted in total to Euro 847.7 million and were thus 38% below the previous years level (Euro 1,363.2 million). In the "Machine Tools" segment, sales revenues fell by Euro 256.0 million (-31%) to Euro 569.6 million. The "Services" segment contributed Euro 277.9 million or 33% to sales revenues. The "Solar Technology" division accounted for Euro 24.1 million (previous year: Euro 140.9 million). Domestic sales revenues fell by 36% to Euro 383.7 million; international sales revenues decreased by 39% to Euro 464.0 million. The export share amounted to 55% (corresponding period in the previous year: 56%).
Order intake in the third quarter reached Euro 237.5 million (-48% compared to the previous years quarter: Euro 459.4 million). In the first nine months, order intake amounted to Euro 818.2 million and thus was 49% or Euro 774.6 million below that of the previous years period (Euro 1,592.8 million). The machine tool business showed a decline at Euro 393.2 million (-61%); the service business amounted to Euro 424.8 million (-29%). The solar business continued to develop positively (+41%). Order intake suffered a severe setback both domestically and internationally: domestic orders shrank by 66% to Euro 244.8 million (previous year: Euro 718.4 million). International orders decreased by 34% to Euro 573.4 million (previous year: Euro 874.4 million). International orders accounted for 70% of orders (previous year: 55%). In the third quarter, the Solar Technology division achieved order intake of Euro 40.5 million (previous year: Euro 2.6 million). Overall a+f GmbH increased order intake in the first nine months to Euro 213.9 million (+18%).
As a result of the global recession, order intake showed a strong decline compared to the same period in the previous year. The trade fairs and exibitions in the first nine months of the year attracted a lot of interest from our customers, order activity, however, continued to be very restrained.
On 30 September 2009 the order backlog within the group amounted to Euro 622.9 million (-36%). The Solar Technology division accounted for Euro 216.5 million or 35% of this.
The GILDEMEISTER group results of operations developed negatively in the third quarter for the first time since the first quarter 2005 as a result of the economic crisis. EBITDA amounted to Euro 4.1 million (previous year: Euro 52.6 million). EBIT amounted to Euro -3.1 million (previous year: Euro 44.8 million). EBT reached Euro -8.1 million (previous year: Euro 37.3 million). Earnings after taxes amounted to Euro -5.2 million (previous year: Euro 23.8 million).
As at 30 September, overall profitability remained positive: EBITDA reached Euro 45.5 million (previous year: Euro 137.2 million), EBIT amounted to Euro 23.8 million (previous year: Euro 114.8 million). EBT was positive at Euro 7.0 million (previous year: Euro 91.6 million). As at 30 September 2009, the group reports earnings after taxes of Euro 4.5 million (previous year: Euro 57.6 million).
As at 30 September 2009, GILDEMEISTER had 5,848 employees, of whom 261 were trainees (31 Dec. 2008: 6,451). As of the end of the third quarter, the number of employees has fallen by 603. Parallel to the reduction in staff we have adjusted our capacities by cutting back on overtime and by using short time working. We already terminated all employment agreements with agency workers by the end of the first six months. By these staffing measures we saved Euro 41.9 million in personnel expenditure in the reporting period and Euro 15.0 million in other expenses in the entire year. At the end of the third quarter, 3,638 employees (62%) worked at our domestic companies and 2,210 employees (38%) at our international companies. Personnel expenditure fell by Euro 41.9 million to Euro 255.5 million (corresponding period in the previous year: Euro 297.4 million); the personnel ratio was 29.9% (previous year: 20.0%).
The GILDEMEISTER share showed a positive upwards trend in the third quarter and at +39% performed better than the MDAX (+25%). This trend was driven by the stock markets with expectations of a lasting economic recovery as well as by the positive order intake trend in the Solar Technology division and by the cooperation with Mori Seiki. Following a share price of Euro 6.88 as of 1 July, the share closed the third quarter at Euro 9.53 (30 Sep. 2009). The share is currently listed at Euro 9.95 (4 Nov. 2009).
Forecast:
GILDEMEISTER is not expecting a radical improvement in the financial year 2009. We expect order intake in the fourth quarter 2009 to develop above the previous quarters. First positive impetus at the beginning of the fourth quarter came from the industry highlight, the EMO 2009 in Milan. On the most important machine tool trade fair for Europe, GILDEMEISTER presented 41 exhibits on about 1,500 square metres including 7 world premieres. With order intake of Euro 52.6 million and 254 machines sold our expectations were met.
The machine tool business is actually suffering greatly from the lack of investment by our customers. The "Services" business is also in decline, however, is still comparatively satisfactory. We have successfully established the new business area of solar technology.
Our business model and our clear corporate strategy have proven their worth. The timely cost reduction measures will cushion the effects of the economic development. With our innovative range of products for a broad mix of customers and industries, as well as our global presence, we will overcome the crisis. The cooperation with Mori Seiki is generating important advantages for our international customers and is increasing the efficiency of GILDEMEISTER.
As announced, for the financial year 2009 we are expecting a clear downwards trend in order intake, sales revenues and earnings. Despite the continuing recession and the poor demand for machine tools worldwide, we continue to expect order intake of about Euro 1.2 billion. Sales revenues will be approximately Euro 1.2 billion. As a result of the measures we have initiated, we are assuming positive earnings (EBIT) overall.
We cannot yet issue any valid forecasts for the financial year 2010. At the moment we are expecting order intake in the machine tools business to grow by 10-15% in the next year. Sales revenues will be lower in this segment. The profitable "Services" business will perform better overall than in the year 2009. We are expecting a further positive development in the solar business.
GILDEMEISTER Aktiengesellschaft
The Executive Board
The Interim Consolidated Financial Statements of GILDEMEISTER Aktiengesellschaft were prepared in accordance with the International Financial Reporting Standards (IFRS), as applicable within the European Union. The Interim Financial Statements have not been audited.
Note: We will be pleased to provide you with the complete Interim Report for the 3rd quarter 2009 upon request.
Up-to-date images can be found at www.gildemeister.com/presspictures.
Disclaimer | Forward-looking statements
Contact persons: Tanja Figge, Ulrike Schmitt
Phone: + 49 (0) 52 05 74-30 01
Fax: + 49 (0) 52 05 74-30 81
E-Mail: tanja.figge@gildemeister.com
