CNC sheet metal company noted record sales

CNC sheet metal working machine tool and laser systems builder, Trumpf, reported record sales and record orders received - ales rose by 18% to EUR 1.65 billion or US$2.01 billion.

The Trumpf Group closed its fiscal year 2005/06 on June 30, 2006 with record sales and record orders received.

Sales rose by 18% to EUR 1.65 billion/US$2.01 billion.

The laser and machine tool manufacturer realized an even bigger growth in orders received: approximately 20% to EUR 1.76 billion/US$2.14 billion.

In October 2006 the technology group will publish the final figures and results.

"After an excellent year we expect to have another good year," said Dr Nicola Leibinger-Kammueller optimistically.

Dr Leibinger-Kammuller became president of the Trumpf Group in November 2005.

Trumpf grew worldwide.

Strongest indications of this growth came from Eastern Europe, Northern America and Asia.

Also in Western Europe and Germany demand increased.

The machine tools and electronics business fields were motors to the positive development.

Also the laser technology, medical technology and power tools business fields partly achieved considerable sales growth.

The fourth consecutive growth year resulted in 450 new jobs worldwide.

This is a plus of seven percent.

In Germany, growth was about 5%.

At the end of fiscal 2005/06 Trumpf employed about 6,500 people, more than 4,000 of whom were in Germany.

Expenditure on fixed assets reached EUR 82 million Euros/US$100 million and exceeded the last year's figure by about 50%.

The group expands its capacities at nine locations, among them Ditzingen, Freiburg, (both Germany) and Seoul (Korea).

* In more detail - Nicola Leibinger-Kammueller, president of the managing board of the Trumpf Group, was quoted as saying during the company?s annual press conference that the current fiscal year is also going well.

Trumpf is expecting sales to reach more than EUR 1.8 billion.

The reason for the company?s positive outlook, among others, is its orders on hand totaling 470 million Euros.

The first three months of the new fiscal year have supported this expectation: Sales and orders received both rose by just under 25 percent.

The company benefited from the global boom in investment goods.

All regions contributed to the success of the Trumpf Group.

The company recorded the strongest gains in Eastern Europe, America and the Pacific Rim.

Sales in Germany rose by 7.0% to EUR 451 million.

Germany thus remained the company?s largest individual market.

Growth also had an impact on employment.

Worldwide, Trumpf created 439 new jobs, 242 overseas and 197 at home.

This corresponds to a 7.3% increase.

Overall, Trumpf employed 6,488 people on June 30, 2006.

Employees were hired primarily in Germany, the USA, Switzerland and France.

* Machine tools are the 'engine' of success - the 'engines' for the company?s success were machine tools for sheet metal processing.

Growth in the Machine Tools/Power Tools Division increased its sales by 23% to EUR 1.44 billion.

Trumpf has thus continued to expand its position as Europe?s largest machine tool manufacturer.

The Laser Technology/Electronics Division enjoyed an 8.5% sales increase to EUR 438 million.

The Electronics business field recorded strong gains.

Among other things, it produces process power generators for the manufacture of flat screen monitors and has positioned itself as one of the world?s leading suppliers.

The Medical Technology Division boosted its sales by 10% to EUR 108 million.

Overall, Trumpf invested EUR 120 million for research and development.

This corresponds to a 12% gain.

The company?s R and D quota is 7.3%.

* Trumpf paves the way for worldwide growth - the ratio of equity to total assets was 45.6%.

With an after-tax cash flow of EUR 183 million, Trumpf has sufficient liquid assets at its disposal to be able to invest heavily in the coming fiscal year.

The company?s investment volume grew by 75% to EUR 89 million.

66% of that was allocated to projects in Germany.

Trumpf invested EUR 44 million alone in the expansion of its headquarters in Ditzingen, Germany.

There, it built a service center and a new employee cafeteria.

The company has other building projects under way in Liberec, Czech Republic; Monterrey, Mexico; and Seoul, South Korea.

Leibinger-Kammueller explained: ?Through these investments, we are strengthening our German locations and considerably improving our position in overseas markets.

Basically, we are currently building all over the world.? The company is confidently looking forward to 2006/07 and sees its greatest growth opportunities primarily in Europe and Asia.

The number of employees will also continue to grow.

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