Demag Cranes Group Cash Flows
Free cash flow before financing – cash flow from operating activities minus cash flow from investing activities – amounted to EUR 7.0 million in the period under review (2008/2009: EUR 43.4 million). The figure changed as follows year on year:
Cash flow from operating activities decreased by EUR 38.5 million compared with the previous financial year to EUR 23.3 million in the period under review due to the change in net working capital. The outflow of cash under the restructuring programme was also EUR 10.4 million higher in the current financial year than in the same period of the previous year. Group interest received net of interest paid narrowed from a negative EUR 1.8 million in the previous year to a negative EUR 0.5 million in financial year 2009/2010. This was mainly due to lower interest payments, in turn reflecting the reduced interest rates on Demag Cranes AG’s master loan agreement.
Cash flow from investing activities changed from an outflow of EUR 18.3 million in 2008/2009 to an outflow of EUR 16.2 million in 2009/2010. Two main factors were at play here: purchases of intangible assets and property, plant and equipment decreased by EUR 1.6 million, from EUR 18.8 million in the previous year to EUR 17.2 million in the period under review, while proceeds from asset disposals increased by EUR 0.5 million to EUR 1.0 million.
Cash outflows of EUR 18.8 million for capital expenditure in the prior year included EUR 5.0 million paid out in financial year 2008/2009 as a result of delays in the delivery of certain machinery ordered in financial year 2007/2008. Adjusting the prior-year figure for this amount, capital expenditure in financial year 2009/2010 is higher than in the previous year.
Cash flow from operating activities and free cash flow before financing have changed as follows since financial year 2005/2006:
Cash Flow
The following table shows a breakdown of capital expenditure by segment:
|
1 October to 30 September |
|||
|
|
2009/2010 |
2008/2009 |
∆ |
|
Industrial Cranes |
9.6 |
12.8 |
–24.9 % |
|
Port Technology |
4.4 |
2.6 |
65.0 % |
|
Services |
1.0 |
3.0 |
–65.8 % |
|
Central holding company/DCAG |
2.2 |
0.4 |
412.0 % |
|
Capital expenditure |
17.2 |
18.8 |
–8.6 % |
Major capital expenditure projects in the Industrial Cranes segment in financial year 2009/2010 included the complete fit-out of the new production location in India, the construction of infrastructure for workshop assembly and repair work including a spare parts warehouse in Saudi Arabia, and the acquisition of tools and moulds for the production of the chain hoist for the middle price segment in China. In Germany, funds were invested in expansion and streamlining, for example, to optimise drive technology processes in Wetter an der Ruhr and refurbish a paint facility in Uslar. Further capital spending related to building refurbishment.
In the Port Technology segment, EUR 2.0 million of development costs were capitalised in financial year 2009/2010, of which EUR 1.7 million relates to the development of a new model range. The establishment of the shared services centre required EUR 1.2 million to be spent on buildings at the Düsseldorf location. As in the previous year, further improvements were made to the production infrastructure and fire prevention.
The Services segment is primarily apportioned a share of cross-segmental capital expenditure.
Capital expenditure was distributed among the regions as follows:
|
1 October to 30 September |
|||
|
|
2009/2010 |
2008/2009 |
∆ |
|
Germany |
11.4 |
14.0 |
–18.3 % |
|
Rest of Europe |
1.1 |
1.6 |
–34.8 % |
|
North and South America |
0.9 |
1.0 |
–9.0 % |
|
Other |
3.8 |
2.2 |
73.0 % |
|
Capital expenditure |
17.2 |
18.8 |
–8.6 % |
