Technologies · Systems · Solutions - Dürr

Consolidated management report
Current and non-current liabilities
Amounts in €m
63
As of December 31, 2004, net working capital for continuing operations amounted
to € 150.3 million, up from € 53.7 million at the end of 2003. This increase as of the balance
sheet date is primarily the result of lower prepayments from customers. We will
continue to intensify our management of prepayments, receivables, and inventory to
reduce net working capital both on annual average and as of the balance sheet date.
Cash flow*
2004 2003
Financial liabilities 112.0 306.6
Corporate bond 186.5 –
Internal financing –46.1 –48.0
Trade payables 492.7 662.4
Tax liabilities 6.1 5.2
Other liabilities 117.6 159.4
Continuing operations 868.8 1,085.6
Discontinued operations 98.0 100.3
Group 966.8 1,185.9
In continuing operations, cash flow from operating activities amounted to € –105.8 million
after € 62.1 million in the previous year. The main reason for the outflow of
funds was a reduction in trade payables by € 165.2 million (previous year: inflow
of € 32.2 million), which was primarily due to the lower customer prepayments
received. The reduction of other liabilities (not to banks) by € 33.4 million (previous
year: inflow of € 10.4 million) and of provisions by € 17.0 million (previous year:
outflow of € 2.0 million) also contributed to the outflow of funds. The reduction of
inventories and trade receivables resulted in an inflow of € 44.1 million (previous
year: outflow of € 19.9 million).
In discontinued operations, cash flow from operating activities amounted to € 2.3 million,
down from € 18.9 million in the previous year. Contributing factors here were a
€ 5.4 million increase in trade receivables (previous year: decrease of € 14.8 million)
and a € 3.2 million decrease of other liabilities (previous year: increase of € 7.5 million).
Cash flow from investing activities in continuing operations totaled € –21.6 million
(previous year: € –25.5 million). Purchases of property, plant and equipment resulted
in an outflow of € 15.5 million (previous year: € 13.4 million). The outflow of funds due
to the addition of intangible assets amounted to € 8.2 million after € 6.7 million in
the previous year. The outflow of funds due to acquisitions net of cash acquired was
the result of purchasing stock in Carl Schenck AG (€ 3.4 million) and Schenck Australia
Pty. Ltd. (€ 2.0 million). The proceeds from selling property, plant and equipment
amounted to € 8.5 million (previous year: € 2.5 million). They derived mainly from the
selling involved in closing the pre-manufacturing operation in Darmstadt, Germany,
and from a sale-and-lease-back transaction.
* The figures for changes to balance sheet items mentioned in the section on cash flows include exchange rate effects
and therefore cannot be reconstructed in the balance sheet.