Results on the rise at Demag Cranes
By Euan Youdale24 August 2011
Demag Cranes Group saw continued growth in the third quarter of its 2010/2011 financial year.
Order intake was €277.3 million, 14.1% up on the same period in the previous financial year. On a nine-month basis, the group generated €839.1 million in orders, growing 30.5 %. The Industrial Cranes and Port Technology segments contributed particularly strongly to this growth, said the company.
The results will please Terex Corporation executives, following its takeover of Demag Cranes last week. "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," said Aloysius Rauen Demag Cranes AG CEO.
Group revenue stood at €260.3 million, 26.9 % higher than the third quarter in 2009/2010. Compared to the first nine months of that year, revenue rose by 16.4% from €641.1 million to €746.1 million.
Focusing on individual segments, Industrial Cranes generated revenue of €123.7 million in the third quarter, 22.1% up on the previous year's quarter.
In the nine months, segment revenue grew by 6.1% to €335.1 million. "The positive trend reflected larger volumes of orders for process and standard cranes in preceding quarters, the revenue from which was recognised during the reporting period," said a company spokesman.
In the Port Technology segment, the company generated revenue of €55.2 million, representing a substantial 86.3% increase on the previous year's quarter. "The low figure for the previous year resulted from revenue being postponed to the fourth quarter of financial year 2009/2010," said the spokesman.
Comparing the first nine months of 2010/2011 with the same period the previous year, revenue grew 54.4% to €175.7 million. This upsurge was driven by sales of mobile harbour cranes and services, said the company.
The Services segment also recorded continued revenue growth. For the third quarter it came to €81.5 million, 9.8% up on the previous year's quarter. The spare parts business was, once again, a major contributor to the growth, added the company. In the nine month period, revenue grew by 11.3% to €235.3 million.
Group operating earnings before interest and tax (EBIT) stood at €18.7 million for the third quarter, an 86.5% rise over the previous year. On a nine-month basis, operating EBIT improved by 54% to €45.8 million.
"Expectations about the future course of the global economy still carry some geopolitical uncertainty. At present, however, we anticipate global economic growth to continue, primarily driven by the emerging markets and among these notably the BIC countries, Brazil, India and China," said the spokesman.
For the full 12 months group revenue is forecast to reach €1.06 billion and grow to €1.3 billion by the end of 2012/2013 financial year, exceeding the record €1,225.8 million accumulated in 2007/2008, said the company.
"There are plans for new emerging market product families and other factors to deliver another sharp jump in revenue in the financial year 2014/2015 to approximately €1.7 billion," concluded the company.