Interim results for the first half year of 2007

• Positive development in business operations continues (second quarter 2007 EBIT margin: 5.7 percent)
• Substantially higher earnings after taxes (second quarter 2007: €79.6 million; second quarter 2006 -€55.8 million)
• Positive net cash position (€47.0 million) after successful sale of Packaging division
• Solid equity ratio (24.7 percent)

KUKA Group reported significantly improved financial results in the second quarter of 2007. Net income (earnings after taxes) in the second quarter of 2007 was €79.6 million, following a loss in the prior year's second quarter of -€55.8 million. The successful sale of the Packaging division generated significant earnings of €66.5 million in discontinued operations, after the substantial loss of -€48.6 million in the second quarter of 2006. Overall, net income (earnings after taxes) for the first half year was €80.8 million, which compares to a loss of -€62.2 million in the first half of 2006. The Group's equity ratio is thereby now 24.7 percent, compared with 11.8 percent a year ago. In parallel, thanks in particular to the sale of the Packaging division, net debt was turned around from -€201.7 million as of June 30, 2006 to a positive net cash position of €47.0 million.

The growth on the operational side of the business was also extended into the second quarter of the business year. An EBIT of 18.5 million was achieved in the second quarter of this year, compared to an operating loss of -€1.4 million in 2006. In the first half of 2007, the Group generated an EBIT of €28.3 million, whereas a year earlier the earnings contribution was only €0.5 million.

In the second quarter of 2007, the EBIT margin reached 5.7 percent. In the first quarter of 2007 it was 3.4 percent, and in the second quarter of 2006 it was -0.5 percent. The EBIT improvement was primarily the result of the higher sales revenues and improved total output in both divisions. Both the Robotics and Systems division grew very satisfactorily and were able to beat last year's margins. In the Systems division, KPTO's pay-on-production contract in the United States contributed substantially to EBIT improvement.

Orders received in the second quarter of 2007 came in at €288.0 million, 7.7 percent below the prior year's €312.1 million. This is a short-term effect caused by the high orders received in the second quarter of 2006 in the Systems division. The Robotics division, which is not subject to these typical fluctuations to the same extent, reported orders received of €109.4 million, which is again significantly higher than the comparable prior year's results.

Orders received of €724.9 million during the first half year were up 9.9 percent, significantly above the comparable 2006 half-year bookings of €659.7 million. The Robotics division's cumulative results jumped 20.3 percent over last year and orders received in the Systems division were 6.1 percent higher than a year earlier. The Group's orders received at the half-year mark were therefore above forecast.

Sales revenues rose significantly in the quarter just ended. While the Group generated revenues of €324.4 million in the second quarter of 2007, the comparable 2006 result was only €264.6 million, representing a jump of 22.6 percent.

Cumulative sales revenues at the mid-year mark were also up significantly. At €615.1 million, the year-over-year increase in sales was €113.3 million, or 22.6 percent. The largest absolute share of the increase was generated by the Systems division, which posted sales of €437.3 million, a rise of 33.6 percent. The successful KTPO business had a noticeable impact. The Robotics division's sales were also above last year's.

At the close of the first half of 2007, the KUKA Group had 5.637 employees.

KUKA Aktiengesellschaft's delightful first quarter results carried over into the second quarter. The two quarters were both higher than last year and above budget. 

The result from discontinued operations of €63.8 million beat the originally announced forecast of the sale of the Packing division. The result from discontinued operations should continue at this level for the entire year.

The ability to achieve sales and profit targets for the current year is supported in particular by the high orders received. The Executive Board thus increases the current EBIT margin target from 4.2 percent to 4.6 percent for 2007. 

The Group has set a target of a solid 22 percent for its equity ratio. The KUKA Group has thereby already reached key financial results targets for the entire year at mid-year.
The present interim financial report was voluntarily subjected to a review of an auditor for the first time.

Gerhard Wiedemann, CEO of KUKA Aktiengesellschaft, commented as follows: 

"The KUKA Group has already achieved key financial results targets at mid-year and has beaten previously announced forecasts. I can state that the Group is now on very solid financial footing."