Declining incoming orders from automotive industry

Operating profit in 2005 expected to weaken

15 aprile 2005

Reduced capital spending by the automotive industry has led to a significant drop in the order situation over the past few weeks. There has been a further erosion of margins. These developments directly impact the Automotive Technology and Robot Technology Divisions. Current year operating profits expected from these two divisions will come in lower than last year's numbers. The first quarter of 2005 just ended shows that the projections for "a trend to higher operating profit quality" in 2005 envisioned at the beginning of the year no longer apply.

IWKA Aktiengesellschaft has launched a comprehensive program of measures to actively counter the drop in operating profit. Profits from the completed sale of former Process Technology Division companies during the first quarter of 2005 have exceeded our expectations.

 

Karlsruhe, April 15, 2005
The Executive Board

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