Technologies · Systems · Solutions - Dürr

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13. Other operating income
and expenses
14. Restructuring expenses
and impairment losses
Other operating income and expenses mainly consist of bad debt allowances of € –2,371 thousand
(2003: € –8,391 thousand), exchange rate gains/losses of € 229 thousand (2003: € 2,479 thousand),
income from the reversal of provisions of € 5,551 thousand (2003: € 3,180 thousand), gains from
the disposal of property, plant and equipment of € 2,308 thousand (2003: € 3,106 thousand),
rent and lease income of € 134 thousand (2003: € 262 thousand) as well as income from the reversal
of valuation allowances of € 1,033 thousand (2003: € 1,608 thousand).
In the 2004 reporting period, restructuring charges and impairment losses of € 13,485 thousand
(2003: € 26,108 thousand) were recorded.
The largest item in the 2004 reporting period was personnel adjustments of € 2,800 thousand
at Dürr Systems GmbH, Stuttgart, due to the reorganization of the company. The purpose of the
company is the planning, design, manufacture, assembly and technical development and sale
of systems, machines and equipment in the field of surface technology.
Ingenieria Agullo S.A., Barcelona (Spain), was restructured in the 2004 reporting period. Expenses
of € 1,025 thousand were incurred. The company manufactures and sells industrial cleaning
systems. The restructuring was necessary to take account of inadequate capacity utilization.
Capacity adjustments at Dürr Production Systems Inc., Farmington (Michigan/USA), resulted in
restructuring costs of € 1,007 thousand.
Further restructuring expenses were incurred during 2004 at Schenck Fertigungs & Service GmbH,
Darmstadt, totaling € 1,173 thousand. This includes in particular a compounding effect of € 633
thousand from the restructuring liability as of December 31, 2003.
In connection with the planned sale of the Development Test Systems (DTS) product line, an
impairment charge of € 6,555 thousand was recorded on intangible assets in the reporting period.
The impairment charge is a devaluation to the net realizable amount. The impairment test
was performed because there were several indicators of impairment. The net realizable amount
was determined on the basis of the attributable fair value less selling costs, and was calculated
at the level of the cash-generating unit. Fair value is the amount for which an asset could be
exchanged between a knowledgeable, willing buyer and a knowledgeable, willing seller in an
arm’s length transaction at the valuation date.
In the 2004 reporting period, the above issues gave rise to personnel expenses of € 5,864
thousand as well as impairment losses on property, plant and equipment of € 141 thousand and
impairment losses on franchises, industrial rights and similar rights of € 6,555 thousand. The
remaining restructuring expenses of € 925 thousand relate to measures taken at companies in
the USA, Brazil, Singapore and Germany.
In the 2003 reporting period the largest single project was the restructuring of Schenck Fertigungs
& Service GmbH, Darmstadt. By the end of 2004 around 380 jobs at this company had been
cut. Schenck Fertigungs & Service GmbH delivered parts and components to divisions within
the Measuring Systems business unit and to a lesser extent to external customers. The reason
for the closure of the company, which has been making losses for years, was the lack of competitiveness
which is reflected in structural cost disadvantages such as inadequate capacity utilization
and high personnel costs.
Dürr Systems S.A.S., Courbevoie (France), formerly Dürr AIS S.A.S., Courbevoie (France) (since
June 28, 2004, known as Dürr Systems S.A.S.) was also restructured during the 2003 reporting period.
At the end of the 2004 reporting period, around 51 jobs had been cut in both the engineering