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capacity utilization throughout the year due to a major order. Since both shipment volumes and prices
were raised, profit grew to € 13.7 million (2006: € 8.3 million) despite higher input material costs.
MFR, which operates in the HFI-welded tubes segment, exceeded its previous year’s level of sales
despite slightly lower shipments. Markedly higher specific selling prices during the financial year were
the main influencing factor which more than offset the higher prices of input materials. MFR generated
earnings before tax of € 33.0 million (2006: € 24.2 million).
The acquisitions of VPE and MRS, and organic growth at MHP and ROB, resulted in higher shipment
and sales figures for the precision tubes products segment. At the same time, it proved possible to
pass on negative cost developments, especially for input materials, to customers via prices. In conjunction
with the ongoing good level of capacity utilization in all production areas, and the consistent
implementation of the cost cutting program, this brought earnings before tax to € 37.2 million
(2006: € 19.7 million).
In the seamless stainless steel tubes product area, the DMV Group looks back on an exceptionally
strong year which saw a number of project acquisitions for the energy producing industry, particularly
in Asia, but also in other regions. Shipments in 2007, however, were slightly below the volume of the
previous year, which was due to the oilfield pipes (OCTG) and umbilical tubes (offshore oil production)
businesses. Higher prices, particularly for cold-finished tubes, resulted in record sales. Earnings before
tax of € 33.1 million outstripped the previous year’s good result of € 21.0 million and set a new record.
As of December 31, 2007, the core workforce of the Tubes Division comprised 5,978 employees,
an increase of 1,787 compared with the end of 2006. Of this number, 1,634 employees joined
through the integration of the new companies, VPE and MRS. In addition, the workforce was
expanded in several companies due to the level of business: at EP (proportionately: +33 employees),
MRM (+31 employees), MHP (+34 employees) and DMV Group (+41 employees).