Demag Cranes Off to a Successful Start in Financial Year 2006/2007

• Group sales in Q1 up by 10.9 percent compared to previous year’s quarter
• Group EBIT margin improved by 3.5 percentage points to 8.6 percent
• Significant EBIT margin increase in the Industrial Cranes segment to 4.5
percent – annual target of 5 percent almost achieved
• 2006/2007 outlook confirmed: Group sales increase of 7 to 10 percent, adjusted
EBITDA 20 to 25 percent higher, adjusted EBIT up 24 to 29 percent

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Düsseldorf (euro adhoc) - The Demag Cranes Group has had a successful
start to the new 2006/2007 financial year and is continuing to grow
profitably in the good economic and industrial climate. At EUR 274.4
million, order intake of the Group was just 2.5 percent below the
previous year’s figure. However, this was due to a major project at
record level in the Port Technology segment. The order book as at the
end of the first quarter of 2006/2007 amounted to EUR 337.6 million,
being up 7.3 percent in the period under report. Thanks to continuing
sound demand for products and services, Group sales were 10.9 percent
higher at EUR 242.5 million. The Port Technology and Services
segments particularly contributed to this growth. Harald J. Joos,
Chief Executive Officer of Demag Cranes AG, emphasises: "Our strategy
of sustained profitable growth is having the desired effect. In view
of the successful product launches and the favourable economic
climate, I am convinced that we will achieve our ambitious goals."

Significant Improvement in Earnings and Profitability In the first
quarter of 2006/2007, the Group achieved earnings before interest,
taxes as well as depreciation and amortisation (EBITDA) of EUR 26.5
million, which corresponds to outstanding year-on-year increase of
65.6 percent. The EBITDA margin was up by 3.6 percentage points to
10.9 percent. The very positive results are mainly attributable to
the Group's focus on, for example, process optimisation, product
standardisation, more efficient production and more effective
administration processes. Adjusted EBIT grew by 88.3 percent to EUR
20.9 million. The EBIT margin improved as a result by 3.5 percentage
points to 8.6 percent. In the period under review, earnings after
taxes were considerably higher at EUR 9.4 million compared to EUR 1.3
million in the previous year. The resulting earnings per share amount
to EUR 0.44.

Industrial Cranes Segment: EBIT Margin Target for FY 2006/2007 Almost
Achieved At EUR 130.6 million, order intake of the Industrial Cranes
segment was up by 8.0 percent over the previous year. This favourable
development is mainly due to double-digit growth rates in almost all
business areas of the segment. Regional improvements in order intake
were above all recorded in Brazil, India and Germany. Sales grew by
0.7 percent compared to the same period in the previous year,
totalling 111.5 million Euros for the period ending on 31 December
2006. In the seasonally weaker first quarter, this slight increase
was driven by sales growth in handling technology and drives as well
as standard cranes. Adjusted EBIT improved from minus EUR 0.5 million
in the first quarter of the previous year to plus EUR 5.0 million.
The EBIT margin grew significantly by 4.9 percentage points to 4.5
percent. These results confirm a sustained turnaround in earnings. In
addition, the target of 5 percent for the entire 2006/2007 financial
year was almost achieved in the first quarter.

Port Technology Segment: Dynamic Increase in Sales and Earnings The
order intake of the Port Technology segment amounted to EUR 68.8
million and was therefore well below the record level of EUR 97.8 for
the first quarter of the previous financial year. However, the
previous year's figure had been the result of the largest single
order for fully automatic guided vehicles (AGVs). Sales grew
significantly by 27.9 percent to EUR 61.0 million. In the period
under review, there was particularly high demand for Generation 5
floating cranes as well as Generation 5 mobile harbour cranes as many
ports are faced with cargo handling bottlenecks. In strongly
expanding ports and terminals in the Middle East, the project
situation has been particularly promising. Adjusted EBIT was 64.7
percent higher at EUR 2.8 million. The EBIT margin grew by 1.0
percentage point to 4.6 percent. Due to seasonal factors, sales in
the first quarter were lower than in the other quarters, which
results in a lower EBIT margin in relation to relatively constant
costs. This development has also been observed in the past and, as
expected, will balance out in the course of the financial year.

Services Segment: Strong Demand for Reburbishments and Spare Parts
The positive trend of previous periods continued in the Services
segment with significant growth in order intake and sales. Order
intake increased by 19.1 percent to EUR 74.9 million. Sales improved
by 16.3 percent to EUR 70.1 million. This positive development is
also based on an increasing demand for refurbishments. In this
respect, this segment benefits from the long service life of Demag
Cranes products and from the world’s largest installed base of
electric cranes and hoists. In the period under review, demand for
spare and wear parts was particularly high. Adjusted EBIT was 32.3
percent higher at EUR 13.1 million. The EBIT margin went up by 2.3
percentage points to 18.7 percent.

Outlook Confirmed: Further Improvement in Sales and Earnings Expected
The Management Board of Demag Cranes AG confirmed the outlook for
financial year 2006/2007 submitted for the 2005/2006 Annual Report,
according to which Group sales are expected to increase in a range of
7.0 to 10.0 percent compared with the previous year. At the Group
level, adjusted EBITDA is expected to grow from 20.0 to 25.0 percent
and adjusted EBIT between 24.0 and 29.0 percent.

About Demag Cranes:

Demag Cranes AG is one of the world’s leading providers of industrial
cranes, crane components, harbour cranes and port automation
technology. Services, in particular maintenance and refurbishment
services, are another key element of the Group’s business activities.
The Group is divided up into the three segments Industrial Cranes,
Port Technology and Services and has the strong and established
"Demag" and "Gottwald" brands. Demag Cranes sees its core expertise
in the development and design of technologically advanced cranes and
hoists as well as automated transport and logistic systems in ports,
the provision of services for these products and the manufacture of
high-quality components.

As a global supplier, Demag Cranes manufactures in 16 countries on
five continents and operates a worldwide sales and service network
that is present in over 60 countries through its subsidiaries,
representative offices and joint ventures. In financial year
2005/2006, 5,680 employees generated sales of some EUR 987 million.
Since the end of June 2006, the Demag Cranes share (WKN: DCAG01) has
been listed in the Prime Standard of the German Stock Exchange and is
included in the SDAX share index.

Demag Cranes. We Can Handle It.

Contact for media enquiries:

Nikolai Juchem
Head of Corporate Communications and Marketing
Tel.: +49 (0)211-7102 1019
E-mail: nikolai.juchem@demagcranes-ag.com
Contact for investors and analysts:

Anke Linnartz
Head of Investor Relations
Tel.: +49 (0)211-7102 1210
E-mail: anke.linnartz@demagcranes-ag.com

Cautionary Note regarding Forward-looking Statements

This press release contains forward-looking statements on Demag
Cranes AG, its subsidiaries and associates, and on the economic and
political conditions that may influence the business performance of
Demag Cranes AG. All these statements are based on assumptions made
by the Management Board using information available to it at the
time. Should these assumptions prove to be wholly or partly
incorrect, or should further risks arise, actual business performance
may differ from that expected.

The Management Board therefore cannot assume any liability for the
statements made.

end of announcement euro adhoc 27.02.2007 07:30:00
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ots Originaltext: Demag Cranes AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Nikolai Juchem
+49(0) 21171021019
nikolai.juchem@demagcranes-ag.com

Branche: Machine Manufacturing
ISIN: DE000DCAG010
WKN: DCAG01
Index: CDAX, SDAX, Prime All Share, Classic All Share
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