For press enquiries:
Rücker AG
Irina Winkelmann
Head of Marketing & Communications
Kreuzberger Ring 40, 65205 Wiesbaden
Phone: +49 611 73 75-0
Fax: +49 611 73 75-259
irina.winkelmann@ruecker.de
Rücker AG mastered a difficult year
Despite a fall in business we stayed in the black in 2009 – Demand increase expected - 300 more engineers sought - Tax-free dividend proposed again
25 March 2010
The 2009 financial year was characterised by a major drop in orders for Rücker AG of Wiesbaden, Germany. The publicly quoted engineering group was nevertheless able to end the year in the black. Chairman of the board Wolfgang Rücker emphasised this at the group's annual press conference in his report on the business figures for 2009.
The global economic and financial crisis and its major consequences affected the international automobile and aviation industries in particular. Rücker is a leading supplier of engineering goods and services to these industries. The group's six domestic and 19 foreign subsidiaries primarily concern themselves with designing and developing automobiles, 'planes, plant, machinery, ships and railway rolling stock and locomotives as well as all the associated engineering consulting and documentation. Models and variants thereof for the future are the group's main products, as Wolfgang Rücker stated.
Group orders fell considerably in 2009. Many commercial clients either cancelled or delayed planned projects due to the current economic conditions. Funds for external R&D orders were cut considerably. The clunker bonus last year led in some segments to an increase in sales but not to any increase in development commissions from manufacturers.
Falling cargo and passenger figures in the airline business resulted in a drop in orders for new products. The manufacturers reacted to this by delaying development projects.
Tax-free dividend proposed
The group reacted in good time to the anticipated fall in business with a comprehensive bundle of measures to stabilise profitability including optimising personnel and fixed costs, improving group structure and introducing short-time work. These decisions led to positive group operating results in the third quarter of 2009. The first signs of business recovery positively influenced our shares. Their price increased from around 4 to over 6 Euros each. Wolfgang Rücker has good news for shareholders. "The board of management and supervisory board have resolved to propose a tax-free dividend of 0.3 Euros a share at the shareholders' annual general meeting on 10 June 2010 as part of our consistent dividend strategy".
Positive earnings before interest and taxes (EBIT) despite business decline
Business volume in 2009 was considerably less than that in 2008. Our turnover fell 25.5 percent to 131.3 million Euros (176.3 million Euros in 2008). Earnings before interest and taxes (EBIT) in 2009, according to the group's financial director Juergen Vogt, remained positive at 3.7 million Euros but the decline compared to the year before (2008: 11.0 million Euros) was significant. Falling turnover and profits meant that earnings before interest and taxes (EBIT) margin fell too. It dropped from 6.2 percent in 2008 to 2.8 percent in 2009. Net yield fell from 3.7 percent to 1.1 percent. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) were 7 million Euros (2008: 16.9 million Euros).
Group net income 2009 was 1.5 million Euros, 76.9 percent below 2008 (6.5 million Euros).
The group's capital fell slightly to 34.7 million Euros (2008: 35.4 million Euros), expressed as a percentage of assets it increased from 36.6 to 43.6 percent. The group has a solid financial structure compared to the rest of the industry as well as to the share values of other medium-sized companies in Germany.
Rücker achieved 68 percent of turnover in Germany in 2009. The decline in overall domestic business at 22.6 percent was lower than for foreign business (31.1 percent).
The group employed a total of 2,130 people on average in 2009 (2008: 2,532) – mainly engineers.
In 2009 we opened a new subsidiary in Kaluga in the Russian Federation in line with our overall policy.
Outlook
Order volume increased at the end of 2009. Wolfgang Rücker said on the group's future prospects that "The market for engineering goods and services is mainly characterised by growth opportunities arising out of the model variety and increased outsourcing". To safeguard and expand market share and penetrate new markets automobile manufacturers are developing new models at ever briefer intervals in his view. Shorter development cycles due to the intervals between market introduction of a vehicle model and its replacement with a new one are of significance. The Rücker group can therefore look forward to increasing order quantities for appropriate engineering goods and services thanks to its specialised business model.
Future prospects for the group lie in the variety of planned models in the automobile and aviation industries under the main headings of environment-friendly mobility and fuel consumption optimisation as well as in mechanical engineering, shipbuilding and railway engineering growth.
Constant development of new power systems, more environment-friendly mobility, new safety rules and increasing use of electronics in automobiles mean Rücker can look forward to further growth.
Enquiries and orders to date this year and business prospects generally mean we will increase our staff again. We currently hope to recruit 300 professional engineers.
The global economic and financial crisis and its major consequences affected the international automobile and aviation industries in particular. Rücker is a leading supplier of engineering goods and services to these industries. The group's six domestic and 19 foreign subsidiaries primarily concern themselves with designing and developing automobiles, 'planes, plant, machinery, ships and railway rolling stock and locomotives as well as all the associated engineering consulting and documentation. Models and variants thereof for the future are the group's main products, as Wolfgang Rücker stated.
Group orders fell considerably in 2009. Many commercial clients either cancelled or delayed planned projects due to the current economic conditions. Funds for external R&D orders were cut considerably. The clunker bonus last year led in some segments to an increase in sales but not to any increase in development commissions from manufacturers.
Falling cargo and passenger figures in the airline business resulted in a drop in orders for new products. The manufacturers reacted to this by delaying development projects.
Tax-free dividend proposed
The group reacted in good time to the anticipated fall in business with a comprehensive bundle of measures to stabilise profitability including optimising personnel and fixed costs, improving group structure and introducing short-time work. These decisions led to positive group operating results in the third quarter of 2009. The first signs of business recovery positively influenced our shares. Their price increased from around 4 to over 6 Euros each. Wolfgang Rücker has good news for shareholders. "The board of management and supervisory board have resolved to propose a tax-free dividend of 0.3 Euros a share at the shareholders' annual general meeting on 10 June 2010 as part of our consistent dividend strategy".
Positive earnings before interest and taxes (EBIT) despite business decline
Business volume in 2009 was considerably less than that in 2008. Our turnover fell 25.5 percent to 131.3 million Euros (176.3 million Euros in 2008). Earnings before interest and taxes (EBIT) in 2009, according to the group's financial director Juergen Vogt, remained positive at 3.7 million Euros but the decline compared to the year before (2008: 11.0 million Euros) was significant. Falling turnover and profits meant that earnings before interest and taxes (EBIT) margin fell too. It dropped from 6.2 percent in 2008 to 2.8 percent in 2009. Net yield fell from 3.7 percent to 1.1 percent. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) were 7 million Euros (2008: 16.9 million Euros).
Group net income 2009 was 1.5 million Euros, 76.9 percent below 2008 (6.5 million Euros).
The group's capital fell slightly to 34.7 million Euros (2008: 35.4 million Euros), expressed as a percentage of assets it increased from 36.6 to 43.6 percent. The group has a solid financial structure compared to the rest of the industry as well as to the share values of other medium-sized companies in Germany.
Rücker achieved 68 percent of turnover in Germany in 2009. The decline in overall domestic business at 22.6 percent was lower than for foreign business (31.1 percent).
The group employed a total of 2,130 people on average in 2009 (2008: 2,532) – mainly engineers.
In 2009 we opened a new subsidiary in Kaluga in the Russian Federation in line with our overall policy.
Outlook
Order volume increased at the end of 2009. Wolfgang Rücker said on the group's future prospects that "The market for engineering goods and services is mainly characterised by growth opportunities arising out of the model variety and increased outsourcing". To safeguard and expand market share and penetrate new markets automobile manufacturers are developing new models at ever briefer intervals in his view. Shorter development cycles due to the intervals between market introduction of a vehicle model and its replacement with a new one are of significance. The Rücker group can therefore look forward to increasing order quantities for appropriate engineering goods and services thanks to its specialised business model.
Future prospects for the group lie in the variety of planned models in the automobile and aviation industries under the main headings of environment-friendly mobility and fuel consumption optimisation as well as in mechanical engineering, shipbuilding and railway engineering growth.
Constant development of new power systems, more environment-friendly mobility, new safety rules and increasing use of electronics in automobiles mean Rücker can look forward to further growth.
Enquiries and orders to date this year and business prospects generally mean we will increase our staff again. We currently hope to recruit 300 professional engineers.
Rücker AG – the publicly quoted engineering group
Its current chairman Wolfgang Rücker founded the Rücker group of Wiesbaden, Germany, in 1970. It went public in 2000 and is now a leading globally active supplier of technical development goods and services to the world's aviation and automotive industries. Clients include global leaders in both industries and in mechanical engineering, railway engineering and shipbuilding, not to mention their suppliers. Virtual goods and services in the bodywork, interior and electrical systems development fields are supplied to all the well-known names in the global automotive industry. In aviation the company offers goods and services ranging from styling aircraft interiors via concept development and the creation of models and prototypes to the calculation of fuselages and wings.
Rücker AG currently has 35 locations in 18 countries.
Rücker AG currently has 35 locations in 18 countries.