Demag reports revenue and profit increase19 December 2007
- Dividend set to increase by 10% to Euros 1.10
- Group order intake up 14.3%
- Group revenues grow by 9.5% and break the billion Euro barrier
- Adjusted group EBIT up 11.9% on a year-on-year comparison
- Significant decrease in debt
- Outlook: Adjusted EBIT expected to reach Euros 110m
"In a year-on-year comparison, the industrial cranes and services segment achieved excellent results and exceeded expectations." Nonetheless, this development could not compensate a decrease in earnings in the port technology segment.
Higher manufacturing costs and transport bottlenecks caused the segment to close considerably worse than expected, which led to an adjustment of the annual earnings forecast in the summer. In the meantime, a package of measures has been adopted producing a positive EBIT effect of Euros 15million, which will first have full impact in the 2008/2009 financial year.
Harald Joos, CEO of Demag Cranes AG, said: "Despite the unexpected challenges in the port technology segment, the 2006/2007 financial year closed successfully for the group as a whole with further growth in revenue and earnings. Accordingly, we intend to share this success with our investors and will propose increasing the dividend to the general meeting."