business performance
summary
Over the course of 2008, the economic climate turned very cloudy. In the second half of the year, the international financial market crisis worsened the economic downturn that was already in progress. A drop in orders received, especially driven by the automotive sector, was already apparent by the fourth quarter. Overall, the rapid deterioration in the general economic conditions had a negative impact on the kuka Group’s business performance.
adjusted orders received level same as last year
Despite the worldwide economic slump, the kuka Group was able to report in fiscal 2008 orders received totaling € 1,279.9 million, just 4.8 percent less than the € 1,343.8 million in 2007. However, adjusted for non-operative effects, such as the changes in input material purchasing by us subsidiary ktpo – kuka Toledo Production Operations – (€ 35.0 million), the revised posting related to redemption of the financing for this company (€ 10.1 million) and the changed € / usd exchange rate (€ 19.6 million), orders received at the Group level were the same as last year.
kuka Robotics: general industry business up 24.4 percent.
The Robotics division’s orders received climbed 6.8 percent, from € 434.9 million in 2007 to € 464.4 million as of the end of 2008. The division was particularly successful in expanding its general industry and service businesses, reporting double-digit growth of 24.4 percent and 23.6 percent respectively year-over-year. In total, general industry orders received for 2008 came in at € 194.3 million versus € 156.2 million the year prior, and service went from € 81.4 million in 2007 to € 100.6 million in 2008. On the other hand, automotive sector orders received were down, particularly in the fourth quarter of 2008. Overall, they dropped 14.1 percent to € 169.5 million from € 197.3 million in 2007.
Robot application for gluing and sealing the hatchback of a car.
In 2008, the Systems division’s orders received came in at € 854.9 million, down 8.8 percent from € 937.7 million in 2007. However, adjusted for the ktpo effects and the changed € / usd exchange rate (€ 17.4 million), comparable orders received were down only 2.3 percent from last year.
kuka Systems’ project business was impacted by major regional shifts during the reporting year. While orders from German customers in 2007 totaled € 308.7 million, almost one-third of the total orders received of € 937.7 million, in 2008 domestic orders dropped substantially, to € 150.2 million. Instead, German manufacturers placed more orders for their European plants. As a result, the Systems division’s orders received from the rest of Europe went from € 134.7 million in 2007 to € 276.7 million in 2008. In North America, 2008 orders received from automotive industry customers fell to € 329.5 million, down from last year’s € 395.6 million. The largest order received from the region during the reporting year was an order from Ford for a car body assembly line in Mexico for the B Car, the equivalent of the European Ford Fiesta. In Asia and the remaining regions, orders received of € 98.5 million for 2008 were almost the same as the prior year’s € 98.7 million.
kuka group sales revenues by division
(in € millions)
Of the total orders received by the kuka Group, 63.8 percent were attributable to automotive industry business partners. Automotive suppliers accounted for 9.3 percent and general industry business partners contributed 26.9 percent to orders received.
high order backlog secures business activity
kuka Group order backlog again higher.
The kuka Group’s order backlog was up 2.6 percent, from € 528.8 million on December 31, 2007 to € 542.3 million on December 31, 2008. The company’s current level of activity is thus notionally secured for 5.1 months of the current fiscal year. kuka Robotics’ sales revenues were significantly higher, but as a result, order backlog declined 3.6 percent to € 100.2 million. Activity is thus notionally secured for 2.5 months. In contrast, kuka Systems’ order backlog was up 3.6 percent to € 450.3 million as of December 31, notionally securing business activity for 6.5 months.
Inert gas welding using robots.
adjusted sales revenues higher than last year
kuka Group sales revenues for the financial year just ended came in at € 1,266.1 million, down 1.6 percent from last year’s € 1,286.4 million. However, adjusted for non-operative effects at ktpo and the changed € / usd exchange rate impact on sales revenues (€ 18.8 million), Group-level sales revenues were actually 3.6 percent higher than the year prior.
The Robotics division’s sales revenues rose even faster in 2008, soaring 14.9 percent to € 474.4 million at the end of 2008 from € 412.9 million in 2007. The Systems division’s sales revenues for the 2008 financial year were € 837.5 million, down 6.9 percent from € 900.0 million in 2007. However, adjusted for non-operative effects at ktpo and the changed € / usd exchange rate impact on sales revenues (€ 16.8 million), Group-level sales revenues were close to last year’s level.
sales revenues by region
(share in %)
