Earnings
EBITDA

Earnings Before Interest and Tax (EBIT)

Consolidated earnings before interest and tax (EBIT) came to EUR 8.3 million in the third quarter of 2009/2010 (Q3 2008/2009: minus EUR 40.8 million). The low comparative figure for the previous year was after provisions for restructuring recognised in the third quarter of 2008/2009. In the first nine months, the Demag Cranes Group generated EBIT of EUR 25.5 million, compared with EUR 4.6 million in the first nine months of 2008/2009.

The Management Board uses operating EBIT as a key indicator for management of the Group. Operating EBIT excludes purchase accounting depreciation and amortisation, comprising the impact on depreciation and amortisation of fair-value adjustments to assets acquired in business combinations. It also excludes any one-off effects, such as severance and restructuring expenses.

In the third quarter of 2009/2010, the Demag Cranes Group generated operating EBIT of EUR 10.0 million (Q3 2008/2009: EUR 5.3 million). The 87.4 percent increase is largely accounted for by the improved cost base as a result of the restructuring programme. Compared with the preceding quarter (EUR 10.5 million), operating EBIT has remained near-constant. Relative to the first nine months of 2008/2009, Group operating EBIT decreased from EUR 55.2 million to EUR 29.7 million.

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in EUR million

Q3
2009/2010

Q3
2008/2009

∆

Q1–Q3
2009/2010

Q1–Q3
2008/2009

∆

Financial year
2008/2009

Q2
2009/2010

∆
Q3/Q2

Group EBIT

8.3

–40.8

n/a

25.5

4.6

459.3 %

13.2

8.7

–4.3 %

Operating
adjustments

1.7

46.2

  

4.2

50.6

  

54.4

1.8

  

Of which

                  

Purchase accounting depreciation and amortisation

0.4

0.4

  

1.2

1.2

  

1.6

0.4

  

Severance
expenses

–

–

  

–

3.8

  

3.7

–

  

Integration costs

1.0

–

  

2.4

–

  

–

1.2

  

Other

0.3

45.8

  

0.5

45.6

  

49.0

0.2

  

Group operating EBIT

10.0

5.3

87.4 %

29.7

55.2

–46.1 %

67.6

10.5

–4.6 %

Of which

                  

Industrial Cranes

–1.6

3.0

n/a

1.3

25.6

–94.8 %

29.7

1.0

n/a

Port Technology

–0.8

–7.5

88.8 %

–3.8

–10.3

63.6 %

–14.8

–0.3

143.8 %

Services

15.3

11.3

35.8 %

39.9

44.5

–10.3 %

60.2

12.9

18.4 %

Central holding company/DCAG

–2.8

–1.4

101.9 %

–7.8

–4.7

66.4 %

–7.5

–3.0

–5.4 %

Operating EBIT is distributed among the segments as follows:

In the Industrial Cranes segment, operating EBIT decreased from EUR 3.0 million in the comparative quarter of the previous year to minus EUR 1.6 million in the third quarter of 2009/2010. This was also down on the preceding quarter (EUR 1.0 million). The decrease reflected the lower revenue. Operating EBIT in the first nine months of 2009/2010 was EUR 1.3 million, compared with EUR 25.6 million in the same period of the previous year.

In the Port Technology segment, operating EBIT improved to minus EUR 0.8 million in the third quarter of 2009/2010 (Q3 2008/2009: minus EUR 7.5 million). Despite significantly lower revenue, operating EBIT remained on a par with the preceding quarter. In comparison with the previous year, operating EBIT reflects the positive effects of the restructuring programme. In the first nine months, operating EBIT improved to minus EUR 3.8 million (Q1 to Q3 2008/2009: minus EUR 10.3 million).

Operating EBIT in the Services segment increased in the period under review by 35.8 percent to EUR 15.3 million (Q3 2008/2009: EUR 11.3 million). Spare parts business showed particularly strong growth in the third quarter. As a result, the operating EBIT margin showed a further substantial rise compared with the preceding quarter, increasing to 20.6 percent. Operating EBIT in the first nine months of financial year 2009/2010 came to EUR 39.9 million (Q1 to Q3 2008/2009: EUR 44.5 million). The shortfall year on year relates to the weaker trend in the first two quarters of financial year 2009/2010.