Interim Report as of June 30, 2012

• Consolidated orders received in first half year climb to EUR 1.1 billion, up 32.4 percent from the year prior
  • EUR 1 billion threshold exceeded for the first time at half year mark
  • Robotics generates new quarterly record for general industry orders – EUR 93.3 million
• Sales revenues up 23 percent to EUR 816.0 million in first half of 2012
• EBIT margin improves to 6.2 percent for first half and to 6.4 percent for second quarter of 2012
• Earnings after taxes more than double to EUR 25.6 million in first half of 2012
• Guidance for 2012 increased: Overall 2012 sales revenues expected to reach about EUR 1.6 billion and EBIT margin forecast at least 6 percent, provided general conditions remain stable

 

Business performance for first half of 2012

All of KUKA's business units again reported profitable growth in the second quarter. Demand for robot-based automation continued to be strong in both automotive and general industry. Both of KUKA Group's divisions, Robotics and Systems, reported very strong orders received, bringing the consolidated total to EUR 506.2 million. Robotics booked EUR 93.3 million in orders received from general industry, a new quarterly record.The strong order volume in prior quarters had a positive impact on sales. Both divisions set quarterly sales records. Consolidated group sales in the second quarter came in at EUR 448.7 million, up 33.2 percent year-over-year. Second-quarter EBIT margin was reported at 6.4 percent, a sharp improvement over the 4.9 percent posted the year prior.

 

Dr. Till Reuter, CEO of KUKA AG, commented as follows: "We had a very good start in 2012 and were able to maintain the momentum into the second quarter.In May, we unveiled the new KR QUANTEC Series and KR C4 controllers to general industry at Automatica in Munich. The products have already set new benchmarks in the automotive sector. The show also marked the world premiere for our small robot KR AGILUS, with which we aim to demonstrate our technology leadership. KUKA plans to continue to grow its market share with such targeted product innovations and a focused strategy."

In the first half of 2012, KUKA AG's orders received came in at EUR 1,108.8 million, up from EUR 837.4 million in the first half of 2011. For the first time, the company surpassed the EUR 1 billion threshold after six months. The Robotics division brought in EUR 210.3 million in orders in the second quarter, 14.8 percent more than at the same time last year. Systems also had orders received that exceeded the prior year's record. The total was EUR 305.0 million, up 16.1 percent from the EUR 262.8 million the division generated in Q2/2011.

KUKA Group's consolidated sales revenues in the first half of 2012 came in at EUR 816.0 million, up 23.0 percent year-over-year. Both divisions contributed equally. Robotics' sales were up 24.2 percent to EUR 354.8 million and Systems' were higher by 18.2 percent, ending at EUR 471.8 million. The Group's consolidated sales revenues in the second quarter of 2012 reached EUR 448.7 million. Robotics' sales of 202.0 million exceeded the threshold of 200 million in one quarter for the first time and were up 35.0 percent from the EUR 149.6 million reported in Q2/2011. Systems also posted a new record of EUR 252.0 million, up from EUR 194.3 million reported in Q2/2011. The book-to-bill ratio came in at 1.36 for the first half of fiscal 2012, and 1.13 in the second quarter of 2012, well over 1.

This drove KUKA Group's order backlog even higher, from EUR 981.2 million at the end of the first quarter of 2012 to EUR 1,046.8 million at the end of the second quarter of 2012. Work on hand was thus up 33.0 percent from EUR 787.3 million on June 30, 2011. The Robotics division's second-quarter 2012 order backlog was EUR 308.1 million, which compares to EUR 226.9 million on June 30, 2011. The Systems division's orders on hand were EUR 749.1 million compared to EUR 565.2 million on June 30, 2011.

Overall, KUKA Group generated earnings before interest and taxes (EBIT) of EUR 28.6 million for the second quarter of 2012, versus EUR 16.4 million in Q2 2011. EBIT margin (that is, EBIT over sales revenues) was thus 6.4 percent, compared to 4.9 percent in Q2/2011. The main reason for this very strong growth was higher sales, but a positive exchange rate impact of EUR 2.5 million was also a contributor. The Robotics division generated an EBIT of EUR 23.9 million compared to EUR 11.9 million a year earlier and an EBIT margin of 11.8 percent. The Systems division's earnings before interest and taxes (EBIT) in the second quarter of 2012 came in at EUR 10.4 million and EBIT margin was 4.1 percent. KUKA Group generated a consolidated EBIT of EUR 50.5 million in the first half of 2012, compared to last year's EUR 31.1 million. EBIT margin was 6.2 percent versus 4.7 percent last year.

KUKA Group's earnings after taxes in the first half of 2012 came in at EUR 25.6 million, up from EUR 11.3 million last year. Earnings per share improved accordingly, going from EUR 0.34 to EUR 0.75. 

Outlook

The strong results of the first half of 2012 demonstrate that KUKA Group can successfully maintain its profitable growth. They have established a solid foundation for fiscal 2012.

KUKA continues to benefit from the unbroken trend to launch new models in automotive, along with fuel-efficient engines and innovations such as lightweight construction, all of which result in significant capital spending. The automotive industry also continues to invest in expanding its capacity in the BRIC nations and in existing factories in Europe and the United States.

KUKA's general industry customers also continue to bet heavily on robot-based automation. With new products such as the KR AGILUS and our special focus on growth markets, KUKA expects to grow faster than the market in the general industry sector.

KUKA has increased its guidance for 2012 based on the growth in the first half of 2012 and our customers' strong capital spending. Given unchanged general conditions, the company now expects sales revenues of about EUR 1.6 billion for fiscal 2012. Based on this sales forecast, KUKA now expects to generate an EBIT margin of at least 6 percent.
 

KUKA Group, Key figures

In EUR million	6 months 2011	6 months 2012	Change
Orders received	837.4	1,108.8	32.4%
Order backlog (06/30)	787.3	1,046.8	33.0%
Sales revenues	663.4	816.0	23.0%
Gross profit	137.4	173.7	26.4%
in % of sales revenues	20.7%	21.3%	-
Earnings before interest and taxes (EBIT)*	31.1	50.5	62.4%
in % of sales revenues	4.7%	6.2%	-
Earnings before interest, taxes, depreceation and amortization (EBITDA)	43.7	64.4	47.4%
in % of sales revenues	6.6%	7.9%	-
Net result	11.3	25.6	>100%
Earnings per share in EUR	0.34	0.75	>100%
Capital expenditure	9.7	22.8	>100%
Equity ratio in % (06/30)	21.8%	24.3%	-
Net debts (06/30)	76.7	45.2	-41.1%
Employees (06/30)	6, 306	7.020	11.3%

 

 

In EUR million	6 months 2011	6 months 2012	Change
Orders received	440.3	506.2	15.0%
Order backlog (06/30)	787.3	1,046.8	33.0%
Sales revenues	336.9	448.7	33.2%
Gross profit	70.6	93.8	32.9%
in % of sales revenues	21.0%	20.9%	-
Earnings before interest and taxes (EBIT)*	16.4	28.6	74.4%
in % of sales revenues	4.9%	6.4%	-
Earnings before interest, taxes, depreceation and amortization (EBITDA)	22.9	35.9	56.8%
in % of sales revenues	6.8%	8.0%	-
Net result	5.9	14.8	>100%
Earnings per share in EUR	0.17	0.43	>100%
Capital expenditure	5.6	10.0	78.6%

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