DORMA holds course as it rides the economic crisis
Good platform for growth in the coming years
 Düsseldorf. In a 2009/10 financial year (June 30) heavily impacted by the economic crisis, DORMA's sales overall came in at €856.4 million, representing just a small decrease of 2.9% versus the level of the previous year. This was announced by DORMA CEO Thomas P. Wagner during the company's fiscal year press conference held in Düsseldorf, Germany. Acquisition effects contributed €2.3 million or 0.3% of the total. After adjusting for foreign exchange and acquisitions, sales decreased by 4.5% compared to prior year. Earnings before taxes (EBT) amounted to €53.7 million, 10.2% lower than in the previous year. Reflecting the economic climate, the average number of employees at the DORMA Group fell in the 2009/10 financial year to 6,470. That is a decrease of 310 or 4.6% compared to the previous year. The headcount as of period end on June 30, 2010, slightly decreased versus prior year, by 130 or 2.0%, from 6,621 to 6,491 people.
International business undergoes widely differing development
In economic terms, fiscal 2009/10 was a real roller coaster, as had also been the case in the previous financial year. Starting with a flat sales platform in the summer months, business expanded towards the end of 2009, only to appreciably lose momentum again at the beginning of 2010, with a substantial upturn finally occurring in the last quarter of the reporting period. "Despite the adverse trading conditions, we were able to successfully consolidate our market position," Wagner declared. However, the situation in the 13 DORMA regions varied considerably. While some markets returned to economic growth quite early on, others continued to bump along the bottom of a long recession. Sales increases in the respective local currencies were achieved during the period under review in China (+32.3%), Far East (+6.2%), Australasia (+5.1%), France (+5.0%), Scanbalt (+4.5%) and South America (+4.3%).
Revenues in all the other regions fell. The Gulf States with their focus market of Dubai suffered particularly from a steep decline in major construction project volumes (-13.7%). Although, in North America, orders on hand at the beginning of the previous year ensured that DORMA was able to still post a favourable sales result in that region, prevailing market conditions exerted their full impact during fiscal 2009/10, resulting in a decline in sales of 20.4%. By comparison, DORMA's business in Central Europe with its core market of Germany stabilised at a high level with a decline of just 3.8%.
DORMA holds course
Given the pattern of economic development, a modest expenditure budget put in place at the beginning of fiscal 2009/2010 (June 30) once again – as in the previous year – proved to be both prudent and foresighted. And even in this difficult year, DORMA was able to maintain its targeted growth path. Indeed, having reached the historic manufacturing mark of 100 million door closers at the beginning of 2010, DORMA has once again clearly underlined the business significance of door closer production for the Group.
The issue of sustainability has also been a matter of increasingly intense activity at DORMA. Conscious of the catalogue of requirements of various certification systems and bodies, such as BREEAM, LEED or DGNB, the company has developed new concepts for further improving the eco-balance of its products. The focus has been on measures to enhance the energy efficiency of DORMA's automatic operators, on optimising the recyclability of its products and on the use of new materials. For DORMA as an internationally active company, developing its global growth markets constitutes a further business priority. As an example, a total of ten DORMA distribution centres have been established within the growth market of India in order to strengthen the company's sales and logistics network there. As a full-service provider, DORMA is continuously endeavouring to expand its networks. The company took a further step forward in this process with the acquisition of the sales and service business of door automation specialist Stratford Services (Newton) in southern Australia. As a result, DORMA's customers can now be offered a complete package of cross-divisional solutions backed up by competent after-sales service – all on a single-source basis.
A good platform for growth
Overall, DORMA has emerged well from the economic difficulties of the financial year, posting no more than a moderate decline in sales and profits. The increase of €29.9 million in operating cash flow to a total of €115.8 million recorded in the year under review (previous year: €85.9 million), and an equity ratio that, at 60.7%, remains at a high level, constitute a good platform for successful growth in the coming years. The first few months of the current fiscal year give DORMA reason to be confident of success in achieving its growth objectives, Thomas P. Wagner revealed. "The purpose of any strategic further development of the DORMA Group will be to strengthen our position in the growth markets and to evolve from a components manufacturer to a supplier of complete, integrated systems incorporating the full range of technologies circling the door. As a full-service provider, we intend to align our entire international portfolio of products and services towards delivering holistic, comprehensive access solutions," the DORMA CEO announced.
back
| Picture download: |
 |
DORMA Sales by Region, FY 2009/10
|
 |
Thomas P. Wagner, CEO DORMA Group
|
 |
Karl-Rudolf Mankel, Shareholder DORMA Group
|
 |
Thomas P. Wagner (CEO), Lothar Linde (COO), Michael Flacke (CFO), Executive Board DORMA Group (left to right)
|
 |
DORMA Employees (annual average), FY 2009/10
|
|
|
|
|
|
|
|
