TRUMPF GROUP MAINTAINS GROWTH COURSE FOR CURRENT YEAR

Sales from outside Germany totaled 70 percent, resulting in overall sales increases for the company. Business activities in the United States have enjoyed dynamic development; sales increased by 27 percent to € 251 million. In Asia, TRUMPF recorded a sales increase of 22 percent, bringing sales up to € 209 million.

The high tech group felt a major economic upswing in western Europe (without Germany). Eastern Europe continued to enjoy a very lively level of demand. Together, both regions increased sales by 19 percent to € 507 million. However, in Germany itself, company sales only rose half a percent to € 422 million.

TRUMPF’s Machine Tool Division expands worldwide

The Machine Tool Business Division accounted for 67 percent of sales. It earned € 1.16 billion in sales which corresponds to 17 percent growth. The Electronics/Medical Technology Business Division did even better than the Machine Tool Business Division, expanding 29 percent.

In comparison to other business divisions, the Laser Technology Business Division recorded a drop in growth this year because major orders caused fluctuations in the growth curve. Sales dipped by 2.3 percent to € 356 million in 2004/05. Without these major orders, it records clear growth in the course of several years.

Growth in Power Tools, the smallest of TRUMPF’s business divisions, surged by 23 percent to € 52 million.

Net operating margin was 10 percent

Income before taxes was boosted dramatically by 46 percent to € 134 million, the net income shot up 71 percent to € 95 million. The net operating margin grew to 9.6 percent.

The equity ratio edged up from 41.6 to 47.5 percent. With an after-tax cash flow of € 133 million, TRUMPF has sufficient liquid assets at its disposal to be able to invest heavily in the coming fiscal year.

TRUMPF begins future projects

During the last fiscal year, TRUMPF began several expansion projects, many of which have not yet been completed. That’s why the investment volume plunged by 38 percent to € 51 million. This year, investment volumes will almost double. Construction activities are ongoing in Ditzingen and Freiburg, Germany, and in Liberec, The Czech Republic, and Seoul, South Korea.

Innovations are the engine of growth

For the last fiscal year, TRUMPF dedicated € 107 million for research and development, which amounts to 7.7 percent of sales.

TRUMPF expects growth to continue in 2005/06

In light of the stable investment mood worldwide – except in Germany – the company is looking confidently toward the future and the 2005/06 fiscal year, in particular. The Group sees the potential for growth unchanged in Asia, North America and parts of Europe. Numerous product innovations will add up to it. It is expected the workforce will increase again this year.