Demag safeguards the company’s future

According to the company, the downturn in the global economic climate reduced the propensity of its global customers to invest, with the manufacturing segments, Industrial Cranes and Port Technology being the hardest hit. As a result, Group order intake decreased by almost 36.4%.although towards the end of the year, orders for Gottwald’s mobile harbour cranes had stabilised at a low level

Thanks to a good order book from the record 2007/2008 financial year, Demag managed to cushion the drop in Group revenue, which was down 14.5% from the previous year.

Due to the low utilisation of its manufacturing facilities with their fixed running costs, Group operating EBIT was significantly lower year on year at Euro 67.6m. Through ‘a rigorous focus’ on cash and working capital Demag ‘once again’ generated a positive free cash flow and reduced net debt almost completely. “By launching countermeasures in good time, we have laid the groundwork to safeguard the economic and financial future of the Group and to increase our competitive edge,” said Aloysius Rauen, Demag Cranes’ CEO.