Group - L. Possehl & Co. mbH

overall Positive Growth of the relevant Markets
Mechanical and systems engineering in Germany achieved doubledigit
growth for the first time in many years. Growth was driven by an
increase in ordering activity in Germany and internationally. Investments
in Asia were primarily responsible for high foreign demand.
Domestic demand benefited from pent-up demand and increased
investments in expanding capacity.
The electrical and electronics industry developed differently
depending on region. Western Europe achieved a steady increase,
accompanied by double-digit growth in Eastern Europe. Growth in
Japan and the USA was below average, whereas the branch grew
substantially in Asia.
The performance of textile machine engineering was mixed during
the fiscal year. While spinning machines saw a reduction in orders,
weaving and knitting machines had a slight upward trend. Meanwhile,
finishing systems displayed a significant decline.
The global automotive industry developed positively in 2007 albeit
at a slower pace and with regional differences. However, the nearly
4 % growth in the passenger car sector was attributable exclusively to
demand in the developing countries of Asia and Latin America as well
as Eastern Europe.
The international steel markets also developed positively in 2007 –
driven by the booming global economy. Once again, China turned out to
be the largest growth driver. The European Union registered a moderate
increase, while the steel market in North America declined.
The German construction industry grew during the reporting period,
if not with the high growth rates of the previous year. However, growth
was mixed in the individual sectors of the main construction trade. High
sales in commercial and public-sector construction were offset by a
decline in residential construction. There was also a shift from new
construction to renovation.
Generally Positive Economic Climate for Possehl Group
Most of the segments of the Possehl Group were able to benefit
from the overall favorable economic climate in 2007. In particular, our
mechanical engineering businesses grew sharply. International Trade
benefited primarily in the fireproof business from the expansion of
the steel industry, while results in Precious Metals Processing were
positively influenced by higher precious metals prices. On the other
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hand, Electronics was burdened by lower demand and the declining
US dollar and thus could not duplicate the exceptional result of the
previous year. However, despite the lower profits, this division remains
one of the most profitable in the Possehl Group.
OPERATIONS AND FINANCIAL POSITION OF THE POSSEHL GROUP
in e million 2007 2006
Net sales 1,521.7 1,452.2
Ordinary result before taxes 75.3 73.9
Extraordinary result 49.5 32.8
Earnings before taxes (EBT) 124.7 106.6
Consolidated net profit 114.1 99.1
GroUP EarNiNGS PoSitioN
Moderate revenue Growth
Group net sales of € 1,521.7 million rose by 4.8 % from the previous
year. The increase in sales was primarily attributable to organic growth.
However, the individual segments of the Group displayed mixed sales
growth. While the mechanical engineering businesses grew in part at
double-digit rates, sales in the Electronics sector declined both on a
currency and unit basis. The remaining sectors approximately maintained
the sales level of the previous year.
NET SALES BY REGION IN 2007
Germany
Other Europe
Asia and other regions
USA
19.3%
9.7 %
E 1,521.7 million
29.4 %
41.6 %