Giesecke & Devrient sales and earnings up

Source: Giesecke & Devrient

The Munich-based technology group Giesecke & Devrient reported strong growth in sales and earnings in its consolidated results for fiscal 2007.

The company's worldwide operations, with a workforce of nearly 9,000 employees, generated net sales of 1.55 billion euros. This represents an increase of approximately 20 percent compared with the previous year. All business units contributed to the Group's outstanding performance around the world, and are all growing at a uniform rate. Earnings before interest and tax (EBIT) grew at a higher rate than sales, increasing by 73 percent to 161 million euros. This pushed the EBIT margin up to 10.4 percent. Net income for the year amounted to 96 million euros.

"Our global strategy, based on innovation and proximity to our international customers, is having the desired effect. Our business is growing, we have significantly improved our profitability, and our balance sheet is very solidly structured. With all of our business units positioned well in their respective markets, our strengthened innovation power, and the increased efficiency of our internal processes, we have an excellent basis from which to achieve further strategic growth," stressed Dr. Karsten Ottenberg, Chairman of the Management Board and CEO of Giesecke & Devrient. "We have again raised the level of our investments in forward-looking research and development projects - by roughly a quarter to almost 100 million euros in 2007 - thus preparing the ground for new products and services."

Business units producing consistent growth
All three of Giesecke & Devrient's business units - Banknote, Cards and Services, Government Solutions - are primed for growth. As in the past, the Banknote business delivered the highest contribution to revenues, with sales amounting to 833 million euros. All three divisions of this business unit - Printing, Paper, and Processing - succeeded in capturing an above-average share of the global market's increased demand for banknote products. In conjunction with their increased productivity, this success led to a further increase the business unit's profitability.
Sales by the Cards and Services business unit increased to 577 million euros, thereby gaining a significant additional share of this fiercely competitive market. Both of its two divisions, Payment and Telecommunications, made significant contributions to the business unit's two-digit sales growth. Even the Government Solutions business unit, which comprises all activities related to security documents, passports and ID cards, was able to improve its results in a market in which it has always been difficult to obtain contracts for international projects, increasing its sales to 136 million euros. The New Business division, which is tasked with systematically identifying and developing new areas of business for Giesecke & Devrient, generated sales of six million euros while at the same time creating openings for major future market opportunities.

Good start to fiscal 2008
Last year, Giesecke & Devrient generated well over 80 percent of its total net sales with customers in 155 countries outside Germany. "Through our over 50 subsidiaries and joint ventures in more than 30 countries, we are able to engage in close dialog with our customers. Moreover, we are continuing to enhance the level of cooperation among our business units and to focus our commitment on the three pillars on which our business success is founded: innovative power, customer intimacy, and trust in our brand," emphasized Ottenberg during the Annual Report Press Conference. "In 2008 we aim to maintain our sales and earnings at the same exceptionally high level that we achieved in 2007, and to continue working on the fundamental elements of our business that will enable us to make further headway in our medium-term strategy for growth."

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