During the third quarter of financial year 2009/2010, economic recovery gained momentum worldwide to an extent that even surprised many market researchers. As the German Federation of Wholesale and Foreign Trade (BGA) reported in July 2010, German exports in May were 9.2 percent higher than a month earlier; compared with May 2009 they were up 28.8 percent – the biggest rise for ten years. According to surveys by VDMA, the industry association, 32.0 percent more orders were received nationwide from January to June 2010 than in the same timeframe a year earlier.

In contrast, the capital markets remained aware of risks such as persistently high levels of national debt in industrialised countries. As a result, the main stock markets spent the quarter moving sideways, with above-average volatility. This high volatility reduces the information value of reporting-date share prices.

From April to June, the Demag Cranes share price largely moved with the market as a whole, but held up well against its benchmark indices. Having closed the second quarter at EUR 25.96 as at 31 March 2010, the share price climbed to its high point for the third quarter at EUR 28.23 on 14 April. The price then fell to a third-quarter low of EUR 23.09 on 25 May. Demag Cranes shares closed at 30 June 2010 at EUR 24.92, some 4.0 percent down on the end of the previous quarter, thus testing the bottom limit of the uptrend that had emerged since autumn 2008. The share price subsequently picked up again to close at EUR 26.48 on 14 July 2010.

From 1 April to 1 July 2010, the MDAX lost 2.8 percent, slipping from 8,035 to 7,811 points while the DAX fell 6.1 percent from 6,236 to 5,857 points.

On 5 May, the Demag Cranes Group announced its results for the second quarter of 2009/2010. The Company reported a stabilisation of business in all three segments, improvements in key Group performance indicators and increased order intake. Despite ongoing uncertainty about the economy, Demag Cranes reaffirmed its guidance for financial year 2009/2010.

On 21 May 2010, financial investors Cevian Capital announced that they had acquired just over ten percent of Demag Cranes AG shares up to 20 May 2010. By their own account, Cevian are compelled by the technology and innovation leadership of Demag Cranes and believe in the continued success of the strong Demag and Gottwald brands. Cevian Capital consider, however, that the current valuation does not adequately reflect the fundamental value of Demag Cranes AG and that it should be substantially higher.

Demag Cranes AG continued its intensive investor relations activities in the third quarter of 2009/2010. The Company took part in the UniCredit First Annual European Forum in San Francisco and the Commerzbank German Mid Cap Investor Conference in New York. Roadshows led to Geneva, Frankfurt, Vienna and Paris. Demag Cranes AG earned special recognition for its investor relations activities from Institutional Investor, the international finance magazine. In a survey of some 1,100 financial analysts and nearly 650 investors, CFO Rainer Beaujean was voted third among Europe’s top CFOs in the General and Mechanical Engineering category. This award also serves as an incentive to continue our active and transparent investor relations work with a decisive approach. The Demag Cranes AG annual report for financial year 2008/2009 also garnered a silver award in the League of American Communications Professionals LLC (LACP) international annual report competition, taking third place in the Equipment, Machinery and Instruments category behind Vossloh AG (platinum), Heidelberger Druckmaschinen AG (gold) and Hyundai Heavy Industries Co. (gold).