MAN Roland Reports 2001 Results, Double-digit Sales & Earnings Growth
Press release from the issuing company
March 5, 2002 - In the 2001 financial year the MAN Roland Group was able to carry on the success it has achieved over the past years. Net sales of EUR 2.1 billion exceeded those of the previous full financial year (EUR 1.8 billion) by 13%. Pre-tax earnings of EUR 89 million also represent a 13% increase compared to the previous period (EUR 79 million). The above-average return on capital employed rate of 20.1% even exceeded the extremely healthy 19.1% achieved in the previous period. New orders fell by 5% from EUR 2.1 billion to EUR 2.0 billion as a result of the significant world-wide economic downturn in the second half of 2001. Orders on hand fell by 9%, from EUR 1.4 billion to EUR 1.3 billion. Nevertheless, the MAN Roland Group was able to fortify and expand the market positions of all of its business sectors: sheet-fed presses, web-fed presses, and trade and services. Thanks to the high number of orders on hand, the web-fed press sector will be working at healthy capacity levels throughout 2002.
MAN Roland has adjusted it capacity utilization to match the smaller number of orders on hand for sheet-fed systems. Assuming continuing but slow overall improvement in the world economy, the MAN Roland Group expects the figures for new orders and sales to be less than last year's high levels. MAN Roland might not be able to achieve the good results of the 2001 financial year, particularly since the operating results of other business sectors cannot compensate for the considerable decrease in production volume experienced by the sheet-fed sector.
New orders slightly lower
In the financial year 2001 MAN Roland achieved EUR 1993 million in new orders, down 5% compared to the previous period: EUR 689 million for sheet-fed systems, or down 16%, and EUR 872 million for web-fed systems, or down 5%. However, the trade and services business sector recorded an increase of 22%, achieving EUR 432 million.
Strong growth in sales
At EUR 2081 million, sales of the MAN Roland Group exceeded the previous year's figure by 13%. All three business sectors contributed to this success: sheet-fed system sales of EUR 791 million were up by 6%, web-fed system sales of EUR 856 million were up by 14%, and trade and services grew by 24% to achieve EUR 434 million. The export share of sales grew to 79%, up from 74% the previous year.
Orders on hand slightly down
On 31 December 2001 orders on hand for the MAN Roland Group amounted to EUR 1273 million, or 9% less than on 31 December 2000. Still, the web-fed press sector will be working at healthy capacities throughout 2002. Weaker market demand made it necessary to adjust utilization capacities in the sheet-fed sector.
As of December 31, 2001, the MAN Roland Group employed 10570 persons (10248 on December 31, 2000, an increase of 3%). This growth is essentially the result of the integration of new sales and services companies, such as the Brüder Henn Group, Vienna, with a total of nine Central and East European offices, as well as our Norwegian sales company Grafisk Kompani A/S.
Investments with a view to the future
In the year under review, EUR 63 million (compared to EUR 56 million the previous year) were spent for leasing agreements, rationalization measures, replacements and reinvestments, and for the continuation of restructuring measures. Our majority share of the software development company Pape + Partner, of Hamburg, represents yet another big step toward our objective of becoming a specialist in networked software solutions for the printing industry.
Results and outlook
In the 2001 financial year earning results of the MAN Roland Group came to EUR 89 million. This represents an increase of 13% compared to the previous year's results of EUR 79 million. With a 4.3% return on sales and a healthy return on capital employed rate of 20.1%, MAN Roland was able to sustain and increase its return figures compared to the 1999/2000 financial year (with 4.3% return on sales and 19.1% return on capital employed rate). Assuming continuing but slow overall improvement in the world economy, the MAN Roland Group expects the figures for new orders and sales to be less than last year's high levels. MAN Roland might not be able to achieve the good results of the 2001 financial year, particularly since the operating results of other business sectors cannot compensate for the considerable decrease in production volume experienced by the sheet-fed sector.
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