Preliminary key figures for the 2007 financial year

The KUKA Group succeeded in the 2007 financial year in completing its program of focusing on the Robotics and Systems Divisions, and commenced a strategy of profitable growth earlier than anticipated

07 February 2008

  • Focusing on Robotics and Systems completed
  • Profitable growth commenced
  • EBIT margin of 5.5 percent (operating margin 4.9 percent) significantly up from prior year
  • Equity ratio of around 26 percent reflects sound financial and balance sheet structure (previous year 11.8 percent)
  • EBIT margin target for 2008: at least 5.5 percent

 

Orders received and sales revenues were significantly higher year-on-year, growing by 12.5 percent and 10.5 percent respectively. Earnings from operating activities (EBIT) of EUR 70.4 million more than quadrupled in 2007 (2006: EUR 16.7 million). The EBIT margin rose from 1.4 percent in 2006 to 5.5 percent in 2007. EBIT for 2007 includes income from special gains relating to sales of property equal to approximately EUR 7 million; accordingly, the adjusted operating margin is 4.9 percent. In the first year in the new structure, the KUKA Group has demonstrated its earnings power, achieving results that clearly exceed both the original target margin (4.2 percent) and the meanwhile increased margin (4.6 percent). Higher capacity utilization as well as the positive effect of the restructuring measures in 2006 have contributed to this increase.

Due among others to the sale of the Packaging Division, the Group reduced all of its debt, transforming it into net liquidity of EUR 163.1 million within one year. In doing so, the Group has improved its liquidity position by EUR 246.9 million. Combining this with the current equity ratio of around 26 percent, KUKA has now achieved a stable financial and balance sheet structure.

Both the Robotics and the Systems Division were able to generate sustained improvements in their operating results for 2007. Robotics achieved an EBIT margin of 8.1 percent (prior year 6.0 percent) and Systems improved its EBIT margin to 4.1 percent (prior year 1.2 percent).

Gerhard Wiedemann, CEO of KUKA AG: "The structural alignment of the KUKA Group focusing on Robotics and Systems has set the company on course for profitable growth. With its present solid financial and balance sheet structure, KUKA is set to achieve a lasting increase in shareholder value.“

The final results for the 2007 financial year including the proposal of a dividend will be published at the accounts press conference in Munich on March 19.

Outlook

The increase in the order backlog provides a good basis for the development of business in 2008.
Future business success will be nourished on the one hand by demand for engineering services and robotics in the automotive industry and one the other hand by the growing importance of general industry. Medium-term planning forecasts an average annual growth of the Divisions by 10 percent for Robotics and 5 percent for Systems. Both growth figures were exceeded in the 2007 financial year. The Robotics Division is again planning for 10 percent growth in 2008. Systems anticipates an increase in business volume of approximately 4 percent. Taking the changed disclosure of the materials component at the pay-on-production plant in Toledo/ USA into account, the growth planned by the Systems Division is also in line with the medium-term planning.
Due to the high level of capacity utilization and an improved earnings structure of the orders, the goal of the Executive Board for the KUKA Group in 2008 is to achieve an EBIT margin of at least 5.5 percent (operating EBIT margin for 2007 4.9 percent).

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