Press Release

Dürr fully on track after the first half of 2013

Bietigheim-Bissingen, August 1, 2013 - Dürr recorded a further increase in earnings in the first half of 2013 and is well on the way to achieving its full-year targets. Whereas the sales revenues of € 1,131.7 million matched the previous year’s level (€ 1,163.3 million), the EBIT margin widened to 7.3% (previous year 6.2%). At € 1,293.5 million, order intake fell slightly short of the previous year’s very high figure (€ 1,404.3 million) as planned. With demand from the automotive industry remaining strong, orders from the general mechanical engineering industry leveled off to some extent in line with expectations. Ralf W. Dieter, CEO of Dürr AG: “Dürr is fully on track and has maintained its upward earnings trajectory. The basis for this was provided by high capacity utilization, productivity gains and the quality of our order execution. We expect sales to gain substantial momentum in the second half of the year.” Valued at € 2,457.5 million, Dürr’s order backlog ensures capacity utilization until well into 2014.

  • Order backlog (€ 2.46 billion) ensures capacity utilization until well into 2014
  • Operating profit up 14%
  • High capital spending on capacity extensions and technology centers

58.4% of new orders came from the emerging markets, where the strong demand for production technology continued in the automotive industry. China alone, in which automobile sales rose by 21% in the first half of 2013, accounted for 37% or € 477 million of the order intake. Demand in North America picked up in the second quarter, while the automotive industry in Western Europe scaled back capital spending substantially.

Service revenues rose by 6.3% in the first half of the year, accounting for 21% of consolidated sales, up from 19% in the previous year.

Dürr raised its capital expenditure by 36% to € 21.8 million in order to continue bringing capacity into line with heightened market volume. Following investments in facilities in China, Mexico and the company’s headquarters in Bietigheim-Bissingen (new assembly hall, additions to testing center), the facilities in Ochtrup and Püttlingen (both Germany) as well as in Radom (Poland) are now to be enlarged. In addition, Dürr will be building its first testing center for painting technology in Japan so as to address this market more effectively. Research and development expense also rose by a substantial 18.3% to € 19.4 million. Selling and administrative expenses climbed only moderately by 5.7%. The financial result, which had included non-recurring costs in the previous year, improved by € 2.6 million to € -10.2 million. On this basis, earnings after tax rose by a disproportionately strong 19% to € 52.4 million.

Cash flow from operating activities came to € 12.1 million after the first six months of 2013. The net financial status improved by € 91.3 million over the middle of 2012, coming to € 43.0 million. Despite the dividend payout of € 38.9 million, equity rose again to € 438.0 million, resulting in an equity ratio of 23.8%. Ralph Heuwing, CFO: “Our main financial metrics are likely to continue improving through to the end of the year. Consequently, we are well positioned for the future.”

Dürr had 7,899 employees as of June 30, 2013. 585 new jobs (up 8%) have been created since the same date of the previous year, including 247 in the current year. In Germany, staff numbers have risen by 124 to 3,536 since the beginning of 2013.

Outlook
With business performance in line with expectations in the first half of the year, Dürr confirms its full-year guidance for 2013 subject to the proviso that there is no major slump in the economy. Accordingly, sales should come to € 2.4 - 2.6 billion, order intake to € 2.3 - 2.5 billion and the EBIT margin to 7.0 - 7.5%. Dürr has raised its capital spending forecast from € 35 - 40 million to € 45 - 50 million. The headcount is expected to rise to around 8,000 by the end of 2013.

KEY FIGURES1Dürr Group (IFRS)
in € million H1/2013 H1/2012 Q2/2013 Q2/2012
Incoming orders 1,293.5 1,404.3 613.10 725.20
Orders on hand (June 30) 2,457.5 2,386.5 2,457.5 2,386.5
Sales revenues 1,131.7 1,163.3 589.20 600.90
Gross profit 219.90 198.10 117.80 105.80
Research and development costs 19.40 16.40 9.60 7.80
EBITDA (earnings before financial re- sult, taxes, depreciation + amortization) 95.90 85.20 53.70 49.70
EBIT (earnings before financial result and taxes) 82.40 72.30 46.40 42.70
Earnings after tax 52.40 44.00 29.70 26.80
Earnings per share (€) 1.51 1.23 0.85 0.75
Cash flow from operating activities 12.10 -64.60 41.80 -45.90
Free cash flow -10.30 -81.70 27.80 -57.20
Capital spending (net of acquisitions) 21.80 16.10 13.90 11.30
Total assets (June 30) 1,840.6 1,752.4 1,840.6 1,752.4
Equity (incl. non-controlling interests) (June 30) 438.00 386.60 438.00 386.60
Equity ratio (June 30) (%) 23.80 22.10 23.80 22.10
Net working capital (June 30) 153.20 151.20 153.20 151.20
Net financial status (June 30) 43.00 -48.30 43.00 -48.30
Employees (June 30) 7,899 7,314 7,899 7,314
Paint and Assembly Systems2
in € million H1/2013 H1/2012 Q2/2013 Q2/2012
Incoming orders 625.80 703.40 301.70 378.70
Sales revenues 559.20 531.20 290.70 278.40
EBIT 43.50 30.20 24.50 16.80
Employees (June 30) 2,983 2,750 2,983 2,750
Application Technology2
in € million H1/2013 H1/2012 Q2/2013 Q2/2012
Incoming orders 325.90 303.20 143.50 137.00
Sales revenues 256.40 264.50 135.60 141.00
EBIT 27.30 25.60 14.40 14.00
Employees (June 30) 1,469 1,281 1,469 1,281
Measuring and Process Systems2
in € million H1/2013 H1/2012 Q2/2013 Q2/2012
Incoming orders 284.40 334.50 138.40 174.80
Sales revenues 273.70 323.80 139.30 157.20
EBIT 16.30 22.80 10.50 13.20
Employees (June 30) 3,039 2,952 3,039 2,952
Clean Technology Systems2
in € million H1/2013 H1/2012 Q2/2013 Q2/2012
Incoming orders 57.40 63.20 29.50 34.80
Sales revenues 42.40 43.80 23.60 24.30
EBIT 1.30 0.70 0.80 1.50
Employees (June 30) 288 223 288 223
1 Minor variances may occur in the computation of sums and percentages due to rounding.
2 As of 2013, the earnings of Dürr GmbH & Co. Campus KG are no longer reported within the Corporate Center but are allocated to the divisions.

Dürr is a mechanical and plant engineering group that holds leading positions in the world market in its areas of operation. It generates a good 80% of its sales in business with the automotive industry. It also supplies the aircraft, machinery, chemical, and pharmaceutical industries with innovative production and environmental technology. The Dürr Group operates in the market with four divisions: Paint and Assembly Systems plans and builds paintshops and final assembly systems for the automobile and aircraft industries. Application Technology provides automated paint application, sealing, and glueing with its robot technologies. Machinery and systems from the Measuring and Process Systems division are used for balancing and cleaning in engine and transmission manufacturing as well as in final vehicle assembly, among other areas. The fourth division, Clean Technology Systems, specializes in processes to improve energy efficiency and exhaust air purification. Dürr has 52 business locations in 23 countries worldwide and approximately 7,900 employees. The Group achieved sales revenues of € 2.4 billion in 2012.

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