Germany-based Demag Cranes AG reports an overall successful financial year 2007-2008 with the Industrial Cranes and Services segments helping boost profitability. 
Despite the increasingly difficult economic environment, the company says it managed to consolidate its strong market position and benefit from its competitive and technological edge. As a result of its consistent focus on market requirements and its measures to develop products and optimise processes, group revenue and earnings continued to increase significantly.
Demag says it by far exceeded the targets set at the beginning of the financial year 2007-2008 with growth of 13.5 per cent and revenue at $1.7 billion. Adjusted EBIT at $191.4 million was also much higher than the forecast $153.1 million at the beginning of the financial year.
According to Harald J Joos, Demag Cranes’ CEO, the financial year 2007-2008 was a record year. “We have managed to boost profitability three times in a row.”
Order intake was up 9.8 per cent to $1.84 billion. “This purely organic growth in the volume of new orders came from both inside and outside Germany and was supported by the Industrial Cranes and Services segments, which posted strong rates of increase. Group order intake was boosted even more by 22.4 per cent to $728.9 million.
At segment level, Industrial Cranes profited from the ongoing high demand for the standard cranes and process cranes product lines, lifting order intake by 16.8 per cent to $935.5 million. The Industrial Cranes segment order book grew by 39.3 per cent by the balance sheet date (30 September 2008) to $487.9 million, a volume equivalent to more than seven average months’ revenue. Order intake in the Port Technology segment fell slightly year-on-year from $450.1 million to $441.1 million. Compared to the prior year, demand for the mobile harbour cranes product range, has, however, grown further.
 
Revenue increases
Due to sustained strong demand for products and services, group revenue was up 13.5 per cent at $1.7 billion in the period under review, enabling the Demag Cranes Group to further consolidate its market position. In the Industrial Cranes segment, the group continued to expand its market position. Driven by the positive trend in order intake, the segment lifted revenue by 17.7 per cent compared with the previous year, thereby more than doubling the rate of increase year-on-year. This growth is attributable to strong demand for the standard cranes, process cranes and crane components product lines, but was also supported by stable prices.
Based on the healthy order book at the end of financial year 2007/2008 and despite the difficult economic environment, the group expects overall sustained steady demand in all three business segments – Industrial Cranes, Port Technology and Services – throughout financial year 2008/2009.
The Demag Cranes Group is one of the world’s leading suppliers of industrial cranes and crane components, harbour cranes and port automation technology. Services, in particular maintenance and refurbishment, are another key element of the group’s business activities.
The company sees its core competence in the development and construction of technically sophisticated cranes and hoists as well as automated transport and logistics systems in ports and terminals, the provision of services for these products and the manufacture of high-quality components.
As a global supplier, the company manufactures in 16 countries on five continents and operates a worldwide sales and service network that is present in over 60 through its subsidiaries, representative offices and a joint venture.
The company’s Middle East office, based in Dubai, recently celebrated its 10th anniversary. The ME organisation is one of our youngest, yet one of the most mature subsidiaries in the 200-year company history, according to Ron Tennant, CEO of sales – Australia, Middle East and Africa.
“The ME is one of our high-growth regions and over the years we have built a very successful standard cranes business, participating in the phenomenal growth and development in the region.”
The company has been very successful in introducing its state-of-the-art DR wire rope hoists.  It has put in place a customer focused sales organisation.
“At present our aim is to strengthen customer loyalty and further increase customer satisfaction,” he says. 
The company plans to venture into markets within the GCC area and the wider Arabian Gulf by setting up new sales and service centres. It aims to provide closer and faster response to its customers’ needs and help improve their business.