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News Release from: Muller Weingarten
Edited by the Manufacturingtalk Editorial
Team on 04 August 2006
Power press builder burdened by negative
market
Faced with a difficult market and competitive environment, the Muller Weingarten Group posted an order intake of EUR 379 million, compared to the record figure of EUR 412.3 million previously.
The Muller Weingarten Group's consolidated financial statements for fiscal year 2005 are based on the applicable International Financial Reporting Standards (IFRS) for the first time Faced with a difficult market and competitive environment, the Muller Weingarten Group posted an order intake of EUR 379 million, compared to the record figure of EUR 412.3 million recorded in the previous year
This article was originally published on Manufacturingtalk on 29 Dec 2004 at 8.00am (UK)
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Order intake therefore fell below expectations, reflecting the increasingly challenging market situation.
Due to the high order intake achieved in the previous year, sales rose by EUR 7.6 million to EUR 403.3 million.
Total output fell by 4.5% to EUR 393.9 million, compared to EUR 412.3 million in the previous year.
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As of 31.12.2005, the order backlog stood at EUR 295.4 million (previous year: EUR 319.7 million).
Based on the International Financial Reporting Standards (IFRS), the Muller Weingarten Group posted a pre-income-tax result of EUR -1.5 million.
The main reason for the negative result is the continually worsening price and earnings situation.
Further burdens resulted from necessary provisions for the order backlog, from the losses absorbed by Muller Weingarten Werkzeuge (the group's tool and die manufacturing company) and from start-up losses at the French sales and service company.
The fall in profits was also due to the switch to different, IFRS-based accounting methods for valuation and profit realisation.
Tax expenses, including the effects of deferred taxes, burdened the result by EUR 3.8 million (previous year: EUR 1.6 million); consequently, the net loss for the year totalled EUR 5.3 million (compared to a net profit of EUR 9.6 million in the previous year).
However, liquid funds rose once more to stand at EUR 37.3 million as of the year end.
On balance, therefore, the group has no bank debts.
The supervisory board and board of management have decided against paying a dividend.
Instead, available funds will be used for strategic and operative growth and for precisely targeted investment in high-growth markets and segments.
This includes establishing a production facility in Dalian/China and the recently agreed purchase of subscription rights relating to US American service company BCN (Bliss, Clearing, Niagara).
BCN specialises in lifecycle support, maintenance and repair for presses made by the former manufacturers Bliss, Clearing and Niagara.
In 2006, the company - based in Hastings/Michigan, USA - will post sales of close to US$ 20 million.
It employs a workforce of around 60 and is a profitable business.
The aim of the acquisition is to develop the successful service activities in North America and Europe, which generated an order intake approaching EUR 100 million for the first time in fiscal year 2005.
As well as substantially increasing the number of machines serviced by the company, Muller Weingarten also expects the new acquisition to have a positive impact on the company's new-machine business, since it will provide a gateway to new customers.
Further stimulus for growth - especially in the Automatic Blanking and Forming Presses Division, Forming Division and Diecasting Technology Division - predominantly came from the booming Asian markets, while sales of large mechanical and hydraulic presses in the traditional markets in particular suffered as a result of widespread investment restraint.
* Outlook for 2006 - the board of management of Muller Weingarten is expecting the difficult market situation to continue and therefore forecasts a substantial pre-tax consolidated loss for fiscal year 2006 also.
Continued investment restraint in the large press sector and, above all, the performance of Muller Weingarten Werkzeuge will have a negative impact on the final result.
Appropriate restructuring measures in the Tool and Die Fabrication segment and measures aimed at boosting profitability have been implemented.
* Change on the board of management - at its meeting this week, the supervisory board appointed Rolf Zimmermann (59) - formerly chairman of the board at Ford Werke in Cologne - as the company's new chairman of the board of management, effective August 2, 2006.
The incumbent interim chairman of the board of management, Prof Dr Guenther Langenbucher (63), is leaving the company as planned, with effect from the same date.
Chairman of the supervisory board Dr Gerhard Wacker said: "In Rolf Zimmermann, we have brought on board a high-profile expert from the automotive industry as chairman of the board of management for Muller Weingarten.
His proven expertise, his vast experience and his many years spent at management level are precisely what we are looking for in order to further develop and efficiently implement our proposed restructuring programmes, so that the company can quickly return to achieving the success to which it has become accustomed.
The supervisory board would like to thank Prof Langenbucher for the undying commitment he displayed during his 10 months as interim chairman of the board of management - a period in which he initiated and implemented major restructuring measures with great aplomb." * Career and company details - a mechanical engineering graduate, Zimmermann has been involved in the automotive industry throughout his entire career.
Having previously held top management positions at Opel and Skoda, he was chairman of the board at Ford Werke in Cologne from 1997 to 2002.
He is also a managing partner at the investment company Atlantic European Partners, a member of various supervisory bodies both in Germany and abroad, and he is currently in discussions about taking a shareholding in Muller Weingarten.
Formerly a chartered accountant, Langenbucher was a board member at Ernst and Young before taking retirement on March 31, 2005.
He agreed to take over as chairman of the board of management at Muller Weingarten following the departure of Dr Michael Heinrich in September 2005, at least until such time as a high-profile manager with a profound knowledge of the industry was found.
Langenbucher is a member of various supervisory boards and similar bodies.
He is also an Honorary Professor at the University of Hohenheim.
* About Muller Weingarten - Muller Weingarten is the only plant and machinery manufacturer in the world to combine the three key areas of expertise at the heart of metalforming - metalworking, forging and diecasting technology - under one roof, the main beneficiary being the automotive industry.
With its vast portfolio, the company is a hub of production technology for vehicle powertrain, chassis and body components.
In addition to its German sites in Weingarten, Esslingen, Erfurt and Remscheid, the Muller Weingarten Group has subsidiaries in China, the US, Mexico, Switzerland, the UK, France, Spain and the Czech Republic as well as service outlets all over the world.
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