Demag Cranes Group Financial Position
The financial position of the Demag Cranes Group changed as follows in the period under review:
in EUR million |
30 Sept |
30 June |
31 March |
31 Dec |
30 Sept |
|
Inventories |
178.7 |
198.8 |
176.5 |
198.7 |
207.1 |
|
Advance payments made |
2.4 |
2.6 |
2.1 |
2.4 |
2.8 |
|
Trade receivables |
179.9 |
153.5 |
143.9 |
131.1 |
152.6 |
|
Trade payables |
–78.9 |
–59.1 |
–54.1 |
–51.8 |
–62.9 |
|
Advance payments received |
–56.8 |
–63.8 |
–54.9 |
–76.9 |
–89.0 |
|
Net working capital |
225.3 |
232.0 |
213.6 |
203.5 |
210.5 |
Net working capital – inventories, advance payments made and trade receivables less trade payables and advance payments received – increased from EUR 210.5 million at 30 September 2009 to EUR 225.3 million at 30 September 2010. This primarily reflects two opposing factors at work: a EUR 32.2 million decrease in advance payments received and a EUR 28.4 million decrease in inventories. In addition, trade receivables increased by EUR 27.3 million and trade payables by EUR 16.0 million. The increase in trade receivables compared with 30 June 2010 is the result of strong revenue in the fourth quarter of the financial year.
| 30 September | ||
|
|
2010 |
2009 |
|
Total assets |
838.0 |
818.8 |
|
Shareholders’ equity |
251.6 |
227.7 |
|
Gearing in % |
–2.8 |
2.7 |
The Demag Cranes Group’s total assets amounted to EUR 838.0 million at 30 September 2010, a rise of EUR 19.2 million compared with 30 September 2009. The main assets-side factors in this change were the EUR 27.3 million increase in trade receivables and a EUR 28.4 million decrease in inventories. At the same time, cash and cash equivalents rose by EUR 9.7 million and deferred tax assets by EUR 6.8 million. On the shareholders’ equity and liabilities side, shareholders’ equity increased by EUR 23.9 million to EUR 251.6 million. Most of the change in shareholders’ equity is attributable to the following:
- Net income after tax of EUR 27.8 million
- The amounts recognised directly in equity for differences arising from currency translation (EUR 13.4 million), actuarial gains and losses on pensions (charge of EUR 25.2 million) and deferred taxes (EUR 7.7 million)
There was also a EUR 32.2 million decrease in advance payments received and a EUR 20.7 million reduction in other provisions, which was due mainly to the utilisation of restructuring provisions in the amount of EUR 18.0 million. Having an opposite effect, pension obligations increased by EUR 24.8 million, from EUR 132.5 million in the previous year to EUR 157.4 million at the end of the period under review. This increase relates mainly to the German pension plans and is due to the reduction in the annual discount factor from 5.35 percent to 3.90 percent. In setting the discount rate, the Demag Cranes Group refers primarily to the iBoxx € index of corporate bonds with an AA rating and a term to maturity of ten years or more (10+). In addition, trade payables increased by EUR 16.0 million and other non-financial liabilities by EUR 12.3 million.
Financial Position
In addition to the liabilities shown in the statement of financial position, there are significant guarantees for third-party liabilities in the form of contingent liabilities relating to buy-back arrangements entered into in the Port Technology segment in connection with sales of certain Company plant and machinery products (see the Notes to the Consolidated Financial Statements under Note 35, “Contingencies and Other Obligations”). The maximum potential obligation amounted to EUR 51.7 million at 30 September 2010 compared with EUR 48.5 million at 30 September 2009.
Gearing – the ratio of net debt to shareholders’ equity – improved in the period under review, from 2.7 percent to minus 2.8 percent at 30 September 2010, due to the Company having net cash of EUR 7.2 million.
