Demag Cranes AG
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Demag Cranes AG Financial Snapshot
Operating Performance
Fast Facts
Forststrasse 16, Duesseldorf, The company reported revenues of US$1,241.71
Headquarters Address
40597,Germany million during 2010, with a CARC of 0.16% during
2006–2010. Its revenue declined at an annual rate of
Telephone + 49 211 71021218
14.66% over the previous fiscal year. In 2010, the
company recorded an operating margin of 5.39%, as
Fax + 49 211 71021015 against 1.26% in 2009.
Website www.demagcranes-ag.de
Revenue and Margins
Ticker Symbol, Stock Exchange D9C, XETRA
Number of Employees 6,115
Fiscal Year End September
Revenue (in US$ million) 1,241.71
Revenue (in EUR million) 931.28
SWOT Analysis Return on Equity
Strengths Weaknesses The company recorded a return on equity (ROE) of
11.09% for 2010, as compared to its peers, SANY
Global Presence Decreasing Order backlog Heavy Industry Co., Ltd. (Ticker: 600031),
Konecranes Plc (Ticker: KCR1V) and Hitachi
Construction Machinery Co. Ltd. (Ticker: 6305), which
Growth in Operating Margin Limited Liquidity Position recorded ROEs of 49.47%, 17.63% and 1.32%
respectively. The company reported an operating
Strong Research and Development margin of 5.39% in 2010.
Under performance of Divisions
Initiatives
Strong Solvency Position Return on Equity
Opportunities Threats
Growing Cranes and Lifting Equipment
Gray Market Heavy Equipment Sales
Industry
Growth in the European Infrastructure Increasing input prices
Organizational Restructuring Program Instable EU Economies
Strategic Expansion Initiatives Labor Shortage
Liquidity Position
The company reported a current ratio of 1.28 in 2010,
as compared to its peers, SANY Heavy Industry Co.,
Ltd., Konecranes Plc and Hitachi Construction
Machinery Co. Ltd., which recorded current ratios of
1.17, 1.48 and 1.61 respectively. As of September
2010, the company recorded cash and short-term
investments of worth US$151.23 million, against zero
current debt. The company reported a debt to equity
ratio of 0.43 in 2010 as compared to its peers, SANY
Heavy Industry Co., Ltd., Konecranes Plc and Hitachi
Construction Machinery Co. Ltd., which recorded debt
to equity ratios of 0.88, 0.18 and 1.05 respectively.
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Demag Cranes AG - SWOT Profile Page 1
Demag Cranes AG
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ................................................................................................................................................5
1.2 Business Description ..............................................................................................................................................5
1.3 Major Products and Services .................................................................................................................................6
2 Analysis of Key Performance Indicators ............................................................................................... 7
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
2.2 Key Financial Performance Indicators .................................................................................................................10
2.2.1 Revenue and Operating Profit .........................................................................................................................10
2.2.2 Asset, Liabilities and Capex .............................................................................................................................11
2.2.3 Operational Efficiency ......................................................................................................................................12
2.2.4 Solvency ..........................................................................................................................................................13
2.2.5 Valuation ..........................................................................................................................................................14
2.3 Competitive Benchmarking ..................................................................................................................................15
2.3.1 Market Capitalization .......................................................................................................................................15
2.3.2 Efficiency ..........................................................................................................................................................16
2.3.3 Capital Expenditure ..........................................................................................................................................17
2.3.4 Valuation ..........................................................................................................................................................18
2.3.5 Turnover – Inventory and Asset .......................................................................................................................19
2.3.6 Liquidity ............................................................................................................................................................20
3 Mergers & Acquisitions and Partnerships ........................................................................................... 21
3.1 M&A and Partnerships Strategy ...........................................................................................................................21
4 Recent Developments ........................................................................................................................... 22
5 SWOT Analysis .....................................