15.12.2008

Demag up 13%

Demag, the industrial and port crane manufacturer has seen revenues and order intake climb steeply in its fiscal year to the end of September, buoyed by a strong performance in its industrial crane and services division.

Overall the company’s revenues rose 13.5 percent to €1.2 billion, while Earnings Before Interest and Tax jumped 45 percent to €137 million.

The industrial crane division led the way with an 18 percent increase in revenues to €571 million, while order intake climbed 17 percent to €672 million leaving it with an order book of €350 million. EBIT for the division leapt 91 percent to €48 million.

Port cranes did not perform quite as well, with revenues rising 8.7 percent to €326 million while order intake slipped back two percent compared to last year.
The division posted a healthy improvement in profitability thought with EBIT up 112 percent to €22 million.

The balance of the company’s business comes from its service division, revenues increased by 11 percent to €329 million and order intake was up nine percent to €334 million.

Outlook

The Group says that it expects overall sustained steady demand in all three business segments – Industrial Cranes, Port Technology and Services – throughout the next 12 months.

The company says that in spite of this, it cannot say for sure how the financial crisis will affect the real economy and thus the Group’s customers and suppliers. As a result, it is adopting a conservative approach and has chosen not to make a specific Group revenue and EBIT forecast for the New Year at this time. The Management Board is confident, however, that the Demag Cranes Group will continue to develop profitably over the next two years.

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Harald Joos

Harald J. Joos, Demag Cranes' chief executive said: " The financial year 2007/2008 was a record year for us. We have managed to boost profitability three times in a row. This is why we intend to propose a more than 25 percent higher dividend at the Annual Shareholders' Meeting despite the difficult business environment."