Shares of Kuka AG (KU2G) increased around 3 percent in the morning trade on London Stock Exchange after the German industrial robots maker reported Tuesday a significant increase in fiscal 2012 profit as revenues were benefited by strong demand for robot-based automation. Orders also climbed from last year. Looking ahead for fiscal 2013, the company projects higher sales and EBIT margin.
Chief Executive Officer Till Reuter said, "After a successful year in 2012, we expect that sales and margins will again grow slightly in 2013. The growth will mainly be driven by our strong market share in the automotive industry and our potential in the emerging nations and general industry."
In its fiscal 2012, Kuka's earnings after taxes increased 86 percent to 55.6 million euros from 29.9 million euros last year, with earnings per share improving to 1.64 euros from 0.89 euros in the previous year.
Earnings before interest and taxes or EBIT, a key earnings metric, surpassed the 100 million euros threshold for the first time, reaching 109.8 million euros. EBIT margin also improved to 6.3 percent from 5.1 percent in 2011. Robotics division was benefited mainly by higher manufacturing volume. Systems' results were driven by better process and project risk management.
Annual sales revenues grew 21.1 percent to 1.74 billion euros from 1.44 billion euros a year ago. Robotics' revenues climbed 20.5 percent and systems' sales were up 20.5 percent.
Consolidated orders received for the fiscal year climbed 21.7 percent to 1.89 billion euros, driven by extensive releases from blanket orders received from European carmakers and significant growth rates in China.
Kuka's order backlog reached 909.4 million euros at the end of fiscal 2012, 25.6 percent higher than last year.
Further, the company said that its Executive Board will propose to shareholders at the Annual General Meeting that a dividend of 0.20 euros per share be paid for fiscal 2012.
Looking ahead, Kuka expects fiscal 2013 sales to reach about 1.8 billion euros, and EBIT margin to come in at around 6.5 percent, both higher than last year, based on stable general conditions, a high order backlog and excellent business growth visibility.
For 2013 generally, Kuka said it expects the global economy and its key automotive and general industry markets to grow, although at a significantly slower pace after the unusually high investments from 2010 to 2012. From a regional perspective, demand from Asia and North and South America is expected to be stronger, while Europe's is expected to be weaker.
On Xetra, Kuka shares are currently trading at 33.24 euros, up 1.03 euros or 3.21 percent.
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