Press Release

Dürr with a consistently successful year 2012 / dividend of € 2.25 per share proposed

Preliminary figures for 2012

Bietigheim-Bissingen, February 19, 2013 - The Dürr Group achieved its goals for 2012. Sales revenues rose by 24.9% to € 2,399.8 million accompanied by a 66.1% increase in earnings before interest and taxes (EBIT) to € 176.9 million, resulting in an EBIT margin of 7.4%, up from 5.5% in the previous year. At € 2,596.8 million, incoming orders came close to matching the previous year’s record level of € 2,684.9 million. The high volume of orders resulted from capacity expansions of the automobile industry in the emerging markets, particularly China. As well as this, Dürr was awarded numerous modernization contracts in the established markets. Dürr’s machine engineering business was also very successful. The Board of Management will be proposing an increase in the dividend per share from € 1.20 in the previous year to € 2.25. Tariff employees in Germany will be receiving a record bonus of € 2,500 (2011: € 1,500). Ralf W. Dieter, CEO of Dürr AG: “2012 was a consistently successful year. Driven by strong demand in the automobile industry, we operated at full capacity. Looking forward to 2013 and beyond, we want to maintain the earnings level achieved”.

In 2012, 55% of order intake was accounted for by the emerging markets. Whereas demand in some emerging markets declined, it remained strong in China, where Dürr generated 33% of its business, particularly in the second half of the year. Despite the recession, order receipts were up more than 20% in Europe.

Earnings were boosted by the sharp rise in sales revenues coupled with corresponding economies of scale and moderate costs. In spite of the large volume of business, all contracts were executed reliably thanks to Dürr employees’ strong commitment. The previous years´ comprehensive process improvements and IT spending also left positive traces.

Dürr stepped up its innovation course, increasing R&D spending by 26.1% to € 37.2 million. Capital spending rose to € 32.5 million (2011: € 23.4 million) and was chiefly targeted at capacity extensions at the Group’s facilities in Germany, China, Mexico and Brazil.

Energy efficiency business was expanded, with Dürr acquiring shares in three small technology companies in 2012 among other things. All three companies – Thermea, HeatMatrix and LaTherm – develop solutions related to the use of thermal energy.

Net finance expense widened by € 8.5 million to € 29.2 million chiefly due to non-recurring effects. With the tax rate standing at 24.6%, net profit for the year came to € 111.4 million, up from € 64.3 million in the previous year.

At € 117.6 million, cash flow from operating activities was encouraging. Net financial status came to € +96.7 million (December 31, 2011: € +51.8 million), marking the sixth consecutive improvement. Spurred by the higher earnings, equity rose by 18.6% to € 432.1 million while the equity ratio widened from 21.9% to 23.9%. Ralph Heuwing, Dürr AG´s CFO: “Thanks to our balanced business model and our disciplined capital management, we require only moderate funding for our growth. As a result, we achieved an excellent return of 43.9% on capital employed in 2012”.

In 2012, the Group workforce widened by 12.2% to 7,652 people. 284 additional employees (up 9.1%) were recruited in Germany and 215 (up 21.4%) in China. 33% of the Group’s employees are based in the emerging markets and 45% in Germany.

Outlook

Dürr entered 2013 with a large order backlog of € 2,316.8 million and has also been performing consistently well over the last few weeks. Project inquiries from the automobile industry remain strong. In North America and Western Europe, the automobile industry is increasingly planning modernization projects to boost the efficiency of older plants. Assuming that economic conditions remain stable, Dürr forecasts slight sales and earnings growth in 2013, with the EBIT margin expected to come in at between 7.0 and 7.5%. Dürr is targeting an order intake of € 2.3 to 2.5 billion.

All the above figures are preliminary and unaudited. They have not yet been approved by the Supervisory Board. The annual report for 2012 setting out the final figures will be published on March 13, 2013.

KEY FIGURES (IFRS)
DÜRR GROUP
in € million 2012 2011 Change (%)
Incoming orders 2,596.8 2,684.9 -3.3
Orders on hand (December 31) 2,316.8 2,142.7 8.1
Sales revenues 2,399.8 1,922.0 24.9
Gross profit 437.8 331.4 32.1
Research and development costs -37.2 -29.5 26.1
EBIT (earnings before financial result and taxes) 176.9 106.5 66.1
Earnings after tax 111.4 64.3 73.3
Cash flow from operating activities 117.6 127.9 -8.1
Free cash flow 65.9 91.8 -28.2
Capital spending (net of acquisitions) 32.5 23.4 38.9
Total assets (December 31) 1,807.7 1,661.0 8.8
Equity (incl. non-controlling interests) (December 31) 432.1 364.3 18.6
Net cash and cash equivalents (December 31) 96.7 51.8 86.7
Net working capital (December 31) 98.6 32.6 202.5
ROCE (return on capital employed) (December 31) 43.9 28.4 15.5 pp
Employees (December 31) 7,652 6,823 12.2
Earnings per share (€) 6.20 3.58 73.2
Dividend per share (€) 2.251 1.20 87.5
DÜRR GROUP
in € million Q4/2012 Q4/2011 Change (%)
Incoming orders 642.5 618.4 3.9
Sales revenues 642.3 614.7 4.5
EBIT (earnings before financial result and taxes) 58.0 43.0 34.9
Earnings after tax 40.1 29.7 35.0
Cash flow from operating activities 136.0 99.7 36.4
Free cash flow 125.1 96.5 29.6
PAINT AND ASSEMBLY SYSTEMS
in € million 2012 2011 Change (%)
Incoming orders 1,326.1 1,340.4 -1.1
Sales revenues 1,125.2 878.7 28.1
EBIT (earnings before financial result and taxes) 73.9 40.5 82.5
Employees (December 31) 2,856 2,524 13.2
APPLICATION TECHNOLOGY
in € million 2012 2011 Change (%)
Incoming orders 556.6 580.8 -4.2
Sales revenues 531.2 406.8 30.6
EBIT (earnings before financial result and taxes) 52.4 31.1 68.5
Employees (December 31) 1,379 1,203 14.6
MEASURING AND PROCESS SYSTEMS
in € million 2012 2011 Change (%)
Incoming orders 600.6 662.7 -9.4
Sales revenues 647.9 550.4 17.7
EBIT (earnings before financial result and taxes) 57.6 31.4 83.4
Employees (December 31) 3,017 2,790 8.1
CLEAN TECHNOLOGY SYSTEMS
in € million 2012 2011 Change (%)
Incoming orders 113.5 101.0 12.4
Sales revenues 95.5 86.1 10.9
EBIT (earnings before financial result and taxes) 3.8 4.9 -22.4
Employees (December 31) 278 205 35.6
Minor variances may occur in the computation of sums and percentages due to rounding.
1Proposed dividend

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 paint shops and final assembly systems for the automobile industry. Application Technology provides automated paint application with its robot technologies. Machinery and systems from the Measuring and Process Systems division are used 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 51 business locations in 23 countries worldwide and approximately 7,700 employees. The Group achieved sales revenues of € 2.4 billion in 2012.

 

 

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