DORMA posts record sales

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29.09.2011

Increase to €944 million in fiscal 2010/11

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Ennepetal.The DORMA Group has significantly increased both sales and earnings. In the course of its 2010/11 financial year (June 30), the company's consolidated net sales rose by 10.3% to a record high of €944.4 million. After adjustment for acquisitions and foreign exchange, sales increased by 6.5% compared to the prior year. Earnings before taxes (EBT) totalled €56.6 million, 5.4% higher than last time.

"Our growth programme, 'DORMA 2020', has enjoyed an excellent start. We have gained market shares in almost all our markets worldwide and in all our product segments. So we are pretty confident of exceeding the €1 billion sales mark for the first time during the current financial year," commented Thomas P. Wagner, DORMA CEO, at the fiscal year press conference in Ennepetal. During the 2010/11 financial year, the average number of employees rose to 6,546 ( 1.2%). As of June 30, 2011, the workforce had risen by 1.5% to 6,589 compared to the end of the previous financial year.

New strategic alignment

In order to exploit growth opportunities worldwide yet more effectively, DORMA has undertaken a comprehensive strategic realignment. The international presence of the DORMA Group has been divided into five sales regions (Areas) and the management structure adapted accordingly. The Research and Development departments have also been reorganised to enable them to react more flexibly to market requirements and to enhance the global competitiveness of the company's products. At present, DORMA conducts its research activities in two competence centres in Germany. R&D centres have also now been established in India and Singapore, with more in the pipeline. In implementing the 'DORMA 2020' growth programme, the company is seeking to increase sales to €2 billion by 2020 and to boost the workforce to around 10,000 employees worldwide.

Growth in all five sales regions

The international market environment, which saw an upturn in the construction industry following the financial and economic crisis, provided additional impetus for growth at the DORMA Group during the period under review. Revenues rose in all five DORMA sales regions. "We are evolving from being a pure product supplier to a provider of integrated premium access solutions and services. This realignment strengthens our position in the market," said Wagner. The highest sales increases were reported by the regions Asia-Pacific/Australia ( 28.6%) and Mediterranean/Middle East/Africa ( 13.0%). The Americas ( 7.5%) and North & East Europe ( 6.2%) also saw a rise in sales. And DORMA also achieved further growth in sales of 4.7% in Germany, its home market.

With a cash flow of €93.3 million (previous year: €115.8 million) and a solid equity ratio of 55.0% (previous year: 60.7%), DORMA is well positioned to drive growth going forward.

Despite the uncertain overall economic situation still prevailing in some countries of the world and the developing euro crisis, DORMA continued to invest during the year under review in optimising its production facilities and in its activities involving the emerging markets. Capital expenditure in property, plant and equipment rose from €18.1 million to €22.9 million.

Outlook: Sales to exceed €1 billion; twofold increase in capital expenditure

In spite of continuing economic uncertainty in some countries, DORMA anticipates ongoing growth in sales for the current financial year. The goal is to generate sales in excess of €1 billion while maintaining earnings before taxes at the prior-year level. Moreover, DORMA intends to double its capital expenditure to over €40 million. "We expect the growth impetus to come mainly from Asia, the emerging markets and South America," said DORMA CEO Wagner. Among other things, DORMA is already involved in the construction of state-of-the-art sports facilities and hotels, and also in infrastructure projects in Brazil for the FIFA Football World Cup in 2014 and the Olympic Games in 2016.

DORMA currently operates companies in 49 countries. As part of the 'DORMA 2020' programme, the company also intends to develop a number of new markets and sales companies are to be set up in several countries for this purpose.

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