Interim Report as of September 30, 2011

• Orders received match full year 2010 level after nine months 2011
• Orders received increase 41 percent to EUR 1.2 billion
• Robotics generates EUR 175 million in Q3/2011, another high level
• Sales revenues rise 37 percent to well over EUR 1 billion in the first nine months of 2011 
• Revenue share from BRIC countries doubles (compared to the same period last year) to 18 percent in the first nine months of 2011
• Group EBIT margin improves to 4.9 percent for the first nine months of 2011 and 5.2 percent in Q3/2011
• Guidance 2011: sales of at least EUR 1.2 billion and EBIT margin of at least 5 percent
• Sales expected to rise to about EUR 1.35 billion

 

Business performance in the first nine months of 2011

After a strong third quarter KUKA has already matched the total level of orders received for 2010 in the first nine months of this year. Orders received climbed 41 percent to over EUR 1.2 billion. Sales, up 37 percent, are well over EUR 1 billion after nine months. The EBIT margin improved from 1.8 percent in 2010 to 4.9 percent in 2011. KUKA's benefit from economies of scale was disproportionately high after charting a course for profitable growth.

 

Dr. Till Reuter, CEO of KUKA AG: “KUKA is benefiting from the the long-term trend for robot-based automation – not just in industrialized countries, but increasingly in emerging countries as well.” According to data collected by the International Federation of Robotics (IFR) global industrial robotics with grow at an average annual growth rate of 6 percent from 2012 to 2014. KUKA can look forward to a number of positive trends in the coming years: an increasing number of car models, a growing level of automation in the manufacturing industry due to cost pressure, continued growth in the emerging countries and the demand for energy-efficient production methods.

KUKA Group again reported strong orders received in the third quarter of 2011. At EUR 378.4 million they were 20.3 percent above the quarter in the previous year. The Robotics division posted another high level of orders received in the third quarter of this year. Orders received came in at EUR 174.8 million, a similar level to the records posted in the two previous quarters. The Systems division’s orders received were also high at EUR 209.3 million, 7.0 percent more than the EUR 195.6 million in Q3/2010.

This satisfying growth was strongly driven by the international automotive industry. A number of German carmakers and major automotive suppliers ordered machines and systems for their world-wide manufacturing facilities. Capacity utilization in the divisions was excellent – they were working close to maximum capacity. Orders received by KUKA Group in the first nine months of 2011 totaled 1,215.8 million. This represents an increase of 41.0 percent compared to the EUR 862.2 million posted in the first nine months of 2010.

The Robotics division received major orders from the automotive sector in the third quarter of 2011, including the delivery of 800 industrial robots to China and 500 units destined for Belgium and Spain.  

The Systems division received various major orders in the reporting period, including one for the automation of the car body assembly line in a Spanish factory, and one for special welding processes valued in the double-digit million range. The assembly and test equipment unit and plant construction for the general industry (all sectors outside of the automotive industry) also reported higher numbers in the third quarter of 2011 than the year before.

Driven by the strong demand, KUKA Group’s sales revenues during the current year rose quarter by quarter and reached EUR 369.0 million in the third quarter of 2011, a new record. Both business divisions contributed to this growth. Robotics’ third-quarter 2011 posting of EUR 165.6 million represents a new record and is 39.6 percent higher than the EUR 118.6 million reported in the third quarter of 2010. The Systems division’s sales revenues of EUR 208.0 million were also very high. Only twice before were higher third-quarter numbers reported: in Q4/2010 and Q3/2008. As a result of the high orders received, the book-to-bill ratio remained above 1 at 1.03, despite the strong sales revenues in the third quarter of 2011. In the first nine months of 2011, KUKA Group's cumulative consolidated sales revenues came in at EUR 1,032.4 million, which is 36.9 percent higher than the EUR 754.0 million reported after the first nine months of 2010.

As of September 30, 2011, KUKA Group's order backlog totaled EUR 798.6 million, 1.4 percent above the record EUR 787.3 million posted at the end of the prior quarter, June 30, 2011. The backlog is 18.1 percent higher than the EUR 676.3 million backlog reported on September 30, 2010. This provides a high degree of visibility for both divisions, Robotics and Systems for 2012.
In the third quarter of 2011, KUKA Group generated earnings before interest and taxes (EBIT) of EUR 19.2 million, versus EUR 8.3 million in Q3/2010. EBIT margin improved further from the prior quarters and at 5.2 percent for Q3/2011 surpassed the 5 percent threshold for the reporting period. The Robotics division contributed EUR 14.3 million with an EBIT margin of 8.6 percent to the Group's consolidated EBIT in the third quarter. The Systems division's profit contribution in the third quarter of 2011 was EUR 7.9 million at an EBIT margin of 3.8 percent, the same as for the two prior quarters. 

In the first nine months of 2011, KUKA Group’s EBIT was EUR 50.3 million, which compares to EUR 13.3 million at the end of nine months in 2010. EBIT margin was 4.9 percent versus 1.8 percent at the end of Q3/2010. The Robotics division contributed EUR 36.2 million at 8.0 percent. The Systems division’s EBIT in the first nine months of 2011 totaled EUR 22.9 million at a margin of 3.8 percent.

Outlook

KUKA has a very solid position in the current economic environment. Contributing to this is the very high order backlog and the competitive product portfolio on the one hand, and significantly lower and more flexible cost structures compared to earlier years and the secured long-term financing on the other.
KUKA Group expects sales revenues of at least EUR 1.2 billion for 2011. Assuming unchanged general conditions, we expect to reach about EUR 1.35 billion. At the same time, we expect an EBIT margin of at least 5 percent.
 

KUKA group, key figures

In EUR millions	3rd Quarter 2010	3rd Quarter 2011	Change	9 months 2010	9 months 2011	Change
Orders received	314.5	378.4	20.3%	862.2	1,215.8	41.0%
Order backlog (09/30)	676.3	798.6	18.1%	676.3	798.6	18.1%
Sales revenues	273.9	369.0	34.7%	754.0	1,032.4	36.9%
Gross profit	52.3	68.7	31.4%	143.1	206.1	44.0%
in % of sales revenues	19.1%	18.6%	-	19.0%	20.0%
Earningsbefore interest an taxes (EBIT)*	8.3	19.2	>100%	13.3	50.3	>100%
in % of sales revenues	3.0%	5.2%	-	1.8%	4.9%	-
Earningsbefore interest, taxes, depreciation and amortization (EBITDA)	14.0	25.4	81.4%	30.4	69.1	>100%
in % of sales revenues	5.1%	6.9%	-	4.0%	6.7%	-
Net result	-0.2	9.0	-	-10.5	20.3	-
Earnings per share in EUR	-0.01	0.27	-	-0.36	0.61	-
Capital expenditure	2.7	7.6	>100%	8.0	17.3	>100%
Equity ratio in % (09/30)	23.9%	21.9%	-	23.9%	21.9%	-
Net debts (09/30)	-64.4	-79.9	24.1%	-64.4	-79.9	24.1%
Employees (09/30)	5,850	6,471	10.6%	5,850	6,471	10.6%

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