Technologies · Systems · Solutions - Dürr

Consolidated management report
Improving competitiveness: In addition to premium, high-end products, we also
offer “baseline” solutions that provide basic equipment as part of our designto-cost
approach. This allows us to be competitive when it comes to winning contracts
in which price is the critical factor.
Growth in emerging markets: We are continuing to expand our capacities in Asia
and Eastern Europe.
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Market potential in the automotive suppliers market: We are intensifying our business
with the automotive industry’s parts suppliers. This segment holds strong
potential since large suppliers are taking over more and more work from automobile
manufacturers and therefore need the corresponding production technology.
Targeted growth outside the automotive industry
We will continue to expand fast-growing, high-margin lines of business outside the
automotive industry through organic growth. Such areas include, for example, environmental
systems, process technology for the mining and basic materials industries
as well as painting and assembly systems for aircraft construction. In this way, we
are reducing our dependence on the business cycles of the automotive industry.
For 2005, we plan to generate 20% of Group sales through operations in the general
industry sector.
Business developments
For 2004, we have prepared our consolidated financial statements in accordance
with International Financial Reporting Standards (IFRS) for the first time. We are also
reporting the comparative amounts from 2003 in accordance with IFRS. In some
cases, these figures differ from those published in the 2003 Annual Report, as the
2003 financial statements were prepared in accordance with United States Generally
Accepted Accounting Principles (US-GAAP). The differences resulting from the conversion
from US-GAAP to IFRS are not significant. The notes to the consolidated financial
statements beginning on page 81 contain the corresponding reconciliations.
The Services business unit and the Development Test Systems product line (DTS)
of Measuring Systems are reported as discontinued operations in the 2004 financial
statements. Continuing operations embrace the Paint Systems, Final Assembly
Systems, Ecoclean, and Measuring Systems business units (excluding DTS) as well
as the Corporate Center. The presentation of the Group comprises continuing and
discontinued operations. The terms “previous year” or “previous year’s figure” always
refer to 2003.
As expected, incoming orders fall short of previous year
The current market situation is shaped by capital spending restraint and project postponements
in the automotive industry. With market volume declining, consolidated
incoming orders in continuing operations amounted to € 1,584.6 million in 2004, down
from € 2,127.0 million in the previous year. However, the values for 2003 and 2004
are comparable only to a limited degree, since the 2003 figure was well above the