Standard & Poor`s raises the rating outlook for Dürr to `positive`
Standard & Poor´s (S&P) has raised the rating outlook for Dürr AG from 'stable' to 'positive'. Dürr's corporate credit rating has been left at 'B' for the present.
With the improved outlook, S&P has reacted to the growth in earnings and cash flow in the past fiscal year. The rating agency expects Dürr to improve its operating performance further. This expectation is based on the mechanical and plant engineering group's strong order intake.
S&P sees the possibility of a rating upgrade this year. A condition is that Dürr holds the ratios for 'cash flow to debt' and 'EBITDA interest coverage' at the level attained.
Ralph Heuwing, Dürr AG's Chief Financial Officer, commented: 'Standard & Poor´s decision affirms the positive development at Dürr. We will continue to focus on improving cash flow, earnings and debt in order to achieve an upgrade. Here, we will profit from our very good level of orders on hand and the continued strong demand.'
Dürr had published preliminary figures for 2007 on February 25. With EBIT growth to EUR 55 million (2006: EUR 33.1 million), an operating cash flow of EUR 86 million (2006: EUR -9.8 million), and an increase of 22% in incoming orders the Group achieved its targets. Dürr was able to reduce its net financial debt substantially to EUR 61 million at the end of the year (December 31, 2006: EUR 96.5 million). The strong order intake continued in January and February 2008.
The Dürr Group is a supplier of plant and equipment that commands leading global market positions in its areas of activity. Business with the auto- motive industry accounts for about 90% of its sales. Dürr also supplies innovative manufacturing and environmental technologies for the aviation, mechanical engineering, chemical and pharmaceutical industries. The Dürr Group operates in the market through two divisions.
The Paint and Assembly Systems division supplies production and painting technologies, mainly for automotive body & chassis manufacturing. The equipment and systems supplied by the Measuring and Process Systems division are used, among other things, for engine and transmission production and for final vehicle assembly.
Dürr achieved sales of close to EUR 1.5 billion with approximately 6,000 employees in 2007. Dürr is present in over 46 locations in 21 countries around the world.