08.08.2011

Demag order intake up 30%

Demag Cranes, the German based port and industrial crane manufacturer - shortly to become part of Terex - has reported a solid pick up in order intake in its third quarter results.

Order intake for the first nine months of its fiscal year was €839 million 30.5 percent higher than last year. Industrial/overhead cranes were up 33.7 percent while order intake for port cranes climbed 48.7 percent, albeit from a very low level last year. The company joins Terex with an order book of €394.5 million almost 16 percent higher than at the same point last year.

Revenues for the nine months were €746.1 million 16.4 percent higher than at the same point last year, while pre-tax profits fell from €19.3 million last year to €12.05 million. This due entirely to the third quarter where the company made a loss of €8.6 million compared to a profit of €6.17 million last year. It says that is quarterly results included some one off charges including over €22 million in fees for advice on fighting the Terex take over.

As far as revenue breakdown Industrial cranes contributed €335.1 million 6.6 percent higher than a year ago, Port cranes €175.7 million a rise of 54.4 percent, this due to delayed invoicing distorting last year’s numbers. While service revenue increased 11.3 percent to €235.3 million.

Third quarter group revenues were €260.3 million 26.9 percent higher than in the same quarter last year. Net debt increased from €8.8 million to $22.2 million.

Demag chief executive Aloysius Rauen, said: "We have been able to continue our growth trend. We are pleased with our business performance and are on target with respect to our guidance figures for the full year."

Demag is due to become part of Terex at the start of next week.