11 May 2006
| |
2005
million DKK |
2006
million DKK |
| Turnover |
1,655 |
1,448 |
| Result before financing |
112.8 |
151.1 |
| Year's result |
85.4 |
117.8 |
| Number of employees |
1,683 |
1,568 |
The year’s turnover has grown by 14.3% against last year’s turnover and is very satisfactory. The Group succeeded in strengthening its leading position in the global marine market, which meant that the company had a historically large order intake at the end of the year.
In 2005, considerable funds were allocated to R&D activities. These were primarily concentrated on the development of new products and technologies as well as product standardisation and order processing efficiency involving further development of existing IT tools. Also in 2005, investments were made in a new global administrative ERP system, which will be implemented during the coming year in all Group companies.
Furthermore, the year’s result has been affected by extraordinary costs in connection with the structural changes implemented during 2005.
In the light of above significant investments in development activities and the extraordinary costs, the result of the year is satisfactory.
Aalborg Industries’ core business is to supply and maintain marine boiler products, i.e. steam boilers, thermal oil heaters, burners, control systems as well as heat exchangers and inert gas systems. As a supplement to the activities in the global marine market, Aalborg Industries also supplies industrial boiler plants and services within selected sectors.
By establishing production facilities in Vietnam for manufacture of marine boiler plants, mainly for the Vietnamese market, together with the extension of the factory in China in 2005, we have strengthened our global market position in the Far Eastern markets within maritime boiler installations. The company in Brazil, who enjoy market leadership in the Bralizian market within industrial boiler plants, has also started producing small-scale boiler plants for the offshore industry.
Growth of production facilities has not only occurred outside Denmark, since the quantity of produced boilers for the European market at the factory in Aalborg has increased by approx. 25% in relation to 2004.
Based on our very positive order situation at the closing of 2005 and recent initiatives in improving our competitive situation we also expect a positive development of results in 2006.
The annual report for 2005 was adopted by the board of directors at the general meeting on 05 MAY 06. All board members were reelected with Sigge Haraldsson as chairman, and the board members are Jørgen Ajslev, Bjarne Hansen, Denis Viet-Jacobsen, Harald Mix and Svend Sigaard. The employees’ representatives are Kjeld Arendt, John Jørgensen and Henrik Riise.
For further information regarding this press release please contact:
Aalborg Industries A/S, Jan Vestergaard Olsen, President & CEO, tel. +45 99 30 40 00.
Aalborg Industries is an international group with subsidiaries in Denmark, Sweden, Finland, the Netherlands, Dubai, Singapore, Japan, China, Indonesia, Korea, Brazil, Vietnam and the USA. A network of agents support the sales activities. The turnover outside Denmark was 93% in 2005.
Production of the Group’s products takes place at its own factories in Denmark, China, Brazil, Vietnam and Indonesia as well as at selected external outsourcing partners.
