Interim results for the first half of 2011

• Group: orders received up 52.9 percent to EUR 837.4 million in first half of fiscal 2011 (H1/11)
• Robotics posts another record high of EUR 183.2 million in Q2/11
• Systems peaks at EUR 262.8 million in Q2/11
• Sales revenues up sharply in the first half of 2011: +38.2 percent to EUR 663.4 million
• EBIT margin climbs to 4.7 percent in H1/11; EBIT margin almost doubles year-over-year to 4.9 percent in Q2/11
• Guidance for 2011 firmed up: forecast for sales of at least 1.2 billion with EBIT margin of at least 5 percent: sales revenues now expected to reach about EUR 1.3 billion
• KUKA lightweight robot receives prestigious euRobotics Technology Award

KUKA Group first half year 2011 business performance

KUKA continues to post robust business results. The second quarter's profitable growth seamlessly extended the excellent first quarter of this fiscal year. Strong capital spending by our customers drove the orders received by KUKA's operations to a high that was more than 50 percent above that of the year prior at the Group level. The Robotics division set another record. The orders received drove sales revenues sharply higher, which led to excellent capacity utilization for the first half year. Supported by the leaner cost structures, KUKA's EBIT came in at EUR 31.1 million for the first half of 2011, which compares to EUR 5.0 million during the prior year's same period. EBIT margin has already reached 4.7 percent after six months.

In the first half of 2011, KUKA Group's orders received peaked at EUR 837.4 million, which is 52.9 percent higher than the EUR 547.7 million reported at the end of the first half of 2010. Robotics and Systems contributed equally to this increase. 

In the first half of 2011, the Robotics division had orders received of EUR 366.3 million, 48.7 percent more than the EUR 246.4 million posted at the end of the first half in 2010. By market segment, general industry's orders received were up the most, rising 63.3 percent from the first half of 2010 to the first half of 2011. But automotive and service also made noteworthy contributions with increases of 43.7 and 31.0 percent respectively.

To further support this growth and the company's geographic diversification, KUKA reorganized its robotics business in China and established a separate company for sales, service and assembly of its robots. This initiative will enable KUKA to even better take advantage of the growth opportunities in the world's fastest expanding robotics market.
The Systems division received orders totaling EUR 478.6 million, up 45.5 percent from the EUR 329.0 million it generated in H1/10. In addition to the automotive sector, the growth was driven especially by orders from general industry and orders to build automated assembly lines.

KUKA Group set a record for consolidated orders received in the second quarter of 2011. The final total for the period was EUR 440.3 million. This is 10.9 percent higher than the prior quarter and up 55.1 percent from the EUR 283.9 million posted in the second quarter of 2010. The Robotics division contributed EUR 183.2 million to this total, which is 39.1 percent higher than the EUR 131.7 million recorded in Q2 of 2010. The Systems division's orders received also peaked at EUR 262.8 million, 57.0 percent higher than during the prior year's equivalent period.

KUKA Group's consolidated sales revenues in the first half of 2011 came in at EUR 663.4 million, up 38.2 percent from EUR 480.1 million in the first half of 2010. Sales revenue growth reported by the Systems division slightly lagged orders received growth because of the relatively long project lead times. In the first half of 2011, Systems generated sales revenues of EUR 399.0 million, up 31.3 percent from EUR 303.9 million in H1/10. Robot shipments and service generated an income of EUR 285.6 million for the Robotics division in the first half of 2011. This is up 43.5 percent from the H1/10 number of EUR 199.0 million.

Between April and June 2011, the Group generated sales of EUR 336.9 million, 24.3 percent more than the EUR 271.0 million reported for the same period last year. The Robotics division's sales revenues of EUR 149.6 million were 32.6 percent higher than the EUR 112.8 million reported in Q2/10 and the Systems division's sales revenues of EUR 194.3 million were up 15.7 percent from the EUR 167.9 million posted in the second quarter of 2010.

KUKA Group's book to bill ratio rose to 1.26 in the first half of 2011 from 1.14 in the first half of 2010. KUKA Group's order backlog rose accordingly, to EUR 787.3 million as of June 30, 2011. This is up EUR 87.1 million or 12.4 percent from the EUR 700.2 million posted at the end of Q1/11. The year-over-year increase from the EUR 630.9 million posted on the record date for the first half of 2010 was 24.8 percent.  Robotics and Systems are both currently working at close to their capacity limit. The Robotics division's order backlog as of June 30, 2011 was up 15.1 percent from the prior quarter to EUR 226.9 million and Systems' was up 11.0 percent to EUR 565.2 million.

In the first half of 2011, KUKA Group's earnings before interest and taxes (EBIT) came in at EUR 31.1 million versus EUR 5.0 million at the end of the first half of 2010. EBIT margin, the ratio of EBIT to sales revenues, improved accordingly, going from 1.0 percent in the first half of 2010 to 4.7 percent in the first half of 2011.

In the first half of 2011, Robotics' EBIT was EUR 21.9 million, compared to EUR 6.2 million in H1/10. During this same period, EBIT margin rose from 3.1 percent in the first half of 2010 to 7.7 percent in the first half of 2011. Systems also contributed significantly more to earnings than last year, reporting an EBIT of EUR 15.0 million, up from EUR 7.6 million in H1/10.  EBIT margin during the period under review rose from 2.5 percent in the first half of 2010 to 3.8 percent in the first half of 2011.

In the second quarter of 2011, Group EBIT reached EUR 16.4 million, which compares to EUR 6.7 million for the second quarter of 2010. EBIT margin was 4.9 percent, almost double the 2.5 percent generated in the second quarter of 2010.

The Robotics division was able to contribute an even greater share to earnings than in the prior quarter. EBIT came in at EUR 11.9 million during the second quarter of 2011 versus EUR 5.7 million in Q2/10 and was up EUR 1.9 million from the EUR 10.0 million posted in Q1/11. EBIT margin also rose, going from 7.4 percent in the first quarter of 2011 to 8.0 percent in the second quarter of 2011.

The Systems division generated an EBIT of EUR 7.3 million in the second quarter of 2011 versus EUR 5.5 million in Q2 2010. EBIT margin went from 3.3 percent in Q2/10 to 3.8 percent in Q2/11.
KUKA also received the euRobotics Technology Award for the KUKA lightweight robot during the period under review. It is the most coveted prize handed out by the European robotics industry for technology transfers and evaluates the innovation strength and economic impact of successful cooperative research projects between industry and the scientific community.

Outlook

KUKA is closing in with determination on the target numbers it forecast: sales of at least EUR 1.2 billion and EBIT margin of at least 5 percent at the Group level. Greater utilization of operational capacities, an improved sales mix with a higher share from general industry and a reduced breakeven point are supporting the efforts to reach the targets.

"The growth in the first six months demonstrates the success of the measures we implemented and provides a solid foundation for achieving our target numbers in 2011," said CEO Dr. Till Reuter. "Especially the high orders received and the strong growth rate in the first six months give us great confidence."

KUKA Group, Key figures

*adjusted for financing costs included in the operating result (IAS 23 R)

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*adjusted for financing costs included in the operating result (IAS 23 R)