Annual Report 2006 - Munters

Facts – Dehumidification Division“ Development during 2006 was very satisfactory. All ofour business areas and geographic regions generatedpositive growth, which together with mix and efficiencyimprovements, increased margins. During 2007, thefocus will be on concentrating our product portfolioand expansion in Asia.”Mike McDonald, Division PresidentDevelopments during 2006Stable orders and sales growth within allbusiness areas.Continued strong increase in demand forcommercial products.A doubling in manufacturing capacity forproducts to the commercial sector.Focus on strengthening the Division’s presencein Asia.The Dehumidifi cation Division accounts for 28 (29) percent ofMunters’ sales volume. In 2006, the Division’s sales rose 8 percentcompared with the preceding year (9 percent, currency adjusted).Operating earnings amounted to SEK 194 M (159) and theDivision’s operating margin was 11.9 percent (10.5).The Dehumidifi cation Division reported continued strong salesduring 2006. An ongoing focus on purchasing, improved lead timesand the continued implementation of Munters Effi ciency Program, hada positive effect on the margin. An increased focus on Asia has startedto yield results within both the industrial and commercial sectors.The successful development of energy-effi cient products continuedwithin the commercial business area, partly the result of strongcooperation with Wal-Mart, the single largest customer. The divisioncontinued its expansion outside the US. Demand for Zeol systemsimproved, following an extended period of weak development.Key figures 20062006 2005 Growth, %Adjustedgrowth, % 1Order intake, SEK M 1,693 1,500 13 14Net sales, SEK M 1,635 1,514 8 9Operating earnings, SEK M 194 159 22 23Operating margin, % 11.9 10.5Return on operatingcapital, % 50.4 40.9Capital turnover rate 4.2 3.9No. of employees, 31 Dec. 900 853 6 1Preceding year restated at 2006 exchange rates.Net sales pergeographic regionShare of consolidatednet salesMarket segments38% Europe49% Americas13% Asia28%12% Food7% Pharmaceuticals25% Commercial premises17% Aftermarket39% OtherM U N T E R S A N N U A L R E P O R T 2 0 0 61