German mechanical and plant engineering group Dürr AG on Tuesday reported a surge in fourth-quarter profit with higher sales revenues. Incoming orders also increased from last year. The company boosted its dividend significantly, and said it projects slight growth in sales and earnings for the year 2013.
In its recently concluded fourth quarter, earnings after tax rose 35 percent to 40.1 million euros from 29.7 million euros a year ago. Earnings before financial result and taxes or EBIT increased 34.9 percent to 58 million euros.
For the quarter, sales revenues grew 4.5 percent to 642.5 million euros from 618.4 million euros last year. Incoming orders were 642.5 million euros, a growth of 4 percent from last year’s 618.4 million euros.
For the year 2102, earnings after tax surged 73.3 percent to 111.4 million euros or 6.20 euros per share, while EBIT rose 66 percent to 176.9 million euros. EBIT margin was 7.4 percent, higher than 5.5 percent in the previous year.
Dürr noted earnings were boosted by the sharp rise in sales revenues coupled with corresponding economies of scale and moderate costs.
Annual sales revenues increased 24.9 percent to 2.40 billion euros. Incoming orders, meanwhile, dropped 3.3 percent to 2.60 billion euros. Orders on hand as of December 31 grew 8.1 percent to 2.32 billion euros.
According to the company, the high volume of orders resulted from capacity expansions of the automobile industry in the emerging markets, particularly China, where Dürr generated 33 percent of its business. In 2012, 55 percent of order intake was accounted for by the emerging markets. Despite the recession, order receipts were up more than 20 percent in Europe.
Further, the company said its board will propose an increase in the dividend per share to 2.25 euros from 1.20 euros.
Dürr CEO Ralf Dieter said, “2012 was a consistently successful year. Driven by strong demand in the automobile industry, we operated at full capacity. Looking forward to 2013 and beyond, we want to maintain the earnings level achieved.”
For the year 2013, Dürr forecasts slight growth in sales and earnings, assuming stable economic conditions. EBIT margin would come in at between 7 percent and 7.5 percent, order intake would be 2.3 billion euros to 2.5 billion euros.
Dürr said it entered 2013 with a large order backlog and has also been performing consistently well over the last few weeks. The company noted that project inquiries from the automobile industry remain strong.
In North America and Western Europe, the automobile industry is increasingly planning modernization projects to boost the efficiency of older plants.
On Frankfurt’s Xetra, Dürr shares closed Monday’s trading at 79.61 euros, down 0.31 euros or 0.39 percent.
by RTT Staff Writer
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