Overall, the order book for the period was up by 26.8% at Euros 402.6m. However, in some cases, bottlenecks in global supply markets, “reflecting high demand in the mechanical and plant engineering sector, have resulted in delays in production and order deliveries,” Demag admitted. As a consequence, sales growth was dampened, climbing only by 3.4% to Euros 255.0m compared to the prior-year period. A set of measures has been introduced to “increase supplier integration and flexibility” Demag added.

Order intake showed only a moderate sales growth, resulting largely from supply bottlenecks in some materials. Significant sales growth over prior-year periods is expected for the upcoming quarters. Thanks to further cost reduction measures and an improved mix of products sold, adjusted EBIT (earnings before interest and tax) saw a remarkable increase of 86.2% compared to the prior-year period, totalling Euros 5.4m. The EBIT margin of 4.6% was 2.1 percentage points above the second quarter of financial year 2005/2006.

Chairman of the Demag Cranes AG management board, Harald Joos said: “All in all, we can look back at a successful first half-year. In view of the excellent order book situation, I am sure that we will meet our ambitious targets for the year.”

EBIT margin

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All in all, we can look back at a successful first half-year. In view of the excellent order book situation, I am sure that we will meet our ambitious targets for the year

The group achieved adjusted EBIT as well as depreciation and amortisation (EBITDA) of Euros 28.4m, which corresponds to a year-on-year growth of 14.5%. This increase was driven, in particular said Demag, by significant growth in the highly profitable services segment. The EBITDA margin was up by 1.0 percentage point at 11.1%. Adjusted EBIT rose by 16.7% to Euros 23.1m. The EBIT margin improved as a result by 1.1 percentage points to 9.1%. In a year-on-year comparison, net income after tax increased significantly by 58.9% to Euros 11.6m. Earnings per share amount to Euros 0.54.

Industrial cranes

Compared to the prior-year period, the order intake of the industrial cranes segment surged by 36.5% to Euros 171.8m. In addition to what Demag described as “the keen demand for standard and process cranes as well as drives,” this extraordinarily high order intake was partially due to a large order of over Euros 29.1m received outside the segment’s core business. This order was awarded under an agency agreement still existing with a former sister company and is expected to generate a neutral to low gross profit. Not including this order, the segment’s order intake still grew by a “very satisfactory” 13.3%. Sales were up slightly by 1.2% at Euros 117.1m.


All in all, we can look back at a successful first half-year. In view of the excellent order book situation, I am sure that we will meet our ambitious targets for the year – Significant increase in order intake, driven by strong demand
– Bottlenecks in global supply markets dampen sales growth
– Industrial cranes segment: notably improved profitability
– Port technology segment: EBIT affected by supply bottlenecks
In summary Chairman of the Demag Cranes AG management board Harald Joos Chairman of the Demag Cranes AG management board Harald Joos