Benefiting from significant growth in the world steel industry and subsequent investment projects in all major markets, Paul Wurth’s consolidated performance was excellent during 2005, exceeding even the good results of the year 2004. This remarkable improvement is mainly attributable to the Group’s growth policy.
Strengthened strategic position of the Group
Following the acquisition in December 2004 of Didier-M&P Energietechnik GmbH, specialised in the engineering and turnkey delivery of hot blast systems and refractory linings for blast furnaces, the key event of 2005 was without doubt the asset and staff take-over of SMS Demag S.p.A.,
As a result of these external growth transactions, Paul Wurth improved its strategic market position through a further specialisation in the field of integrated route hot metal production technologies and by expanding its skilled staff resources, enabling the Group to successfully carry out major construction and reline jobs of complete blast furnace installations. Paul Wurth’s technological asset base has in addition been enlarged with Paul Wurth Italia’s know-how in coking plants and direct reduction.
Paul Wurth’s growth policy is further illustrated by the acquisition, via Paul Wurth Umwelttechnik GmbH, of a 65% stake in Turbofilter GmbH. Based in
Moreover, a new subsidiary, Beijing Paul Wurth Trading Co., Ltd., specialising in subcontracting partial project deliveries such as boiler-making and steel structures to Chinese workshops, was set up.
Commercial achievements
The combination of all expertise available within the Group enabled Paul Wurth to win key orders such as the construction of Tata Steel’s new blast furnace in
Other key markets driven by strong growth of steel demand and capital expenditure into new and modernisation of existing installations, were
The values of Paul Wurth
The ongoing efforts of Paul Wurth to improve its health and safety performances were officially recognised by the award, in December 2005, of the VCA-SCC certification (Safety Checklist Contractors), validating the safety management system for project management activities. Safety and health continue to be a policy priority for the Group, as evidenced by the pilot project « Health and Well-being at work », conducted in collaboration with CRP-Santé, a
During 2005, Paul Wurth pursued its Research and Development activities, enabling the Group to improve its existing equipment portfolio and to make progress in the field of electro- and powder metallurgy projects. For the financial year 2006, the new department Corporate Technology, in charge of maintaining, protecting and developing the Group’s technological know-how, manages an increased R&D budget, taking into account the broader scope of the Group’s activities.
In order to successfully integrate the various professional backgrounds and cultures and to make sure not only to transmit the « know-how » of the Group’s expertise but also the « know-why », Paul Wurth invests considerable efforts and means into training and development of its employees, representing today nearly 1100 people worldwide.
The Group's performances
The Group’s consolidated turnover in 2005 reached the record level of 292.1 million euros compared with 163.0 million euros a year earlier, representing an absolute increase of 79.2% and 31.6% at a constant consolidation scope. This translated into a net consolidated profit for the year 2005 of 10.1 million euros (4.7 million euros in 2004).
The good business environment is in particular evidenced by the record level of new orders, which amounted to 484.9 million euros in 2005, representing a 57.4% increase in comparison with the volume for 2004 (308.0 million euros). Even at constant consolidation scope, the increase is still substantial with 23.7%.
Given these good results, the General Meeting approved the payment of a gross dividend of 130 euros per share in relation to the 2005 financial year.
Optimistic outlook
Considering the Group's order book, which stood at 429.6 million euros as at 31 December 2005, the outlook for 2006 is favourable. Other major projects – mainly in
2006 appears to be equally promising for a further commercialisation of the Primus® process: Paul Wurth recently received a letter of intent from Dragon Steel in
Finally, Paul Wurth’s Civil Construction department, which in the course of 2005 contracted a number of important and complex projects, signed in February 2006 a partnership agreement with Aquaplus, a Belgian company specialized in water treatment and a major player in Flanders. This co-operation will enable Paul Wurth to expand its portfolio of services in a sector which is likely to benefit, in the coming years, from major capital expenditure.
PAUL WURTH S.A. • 32, rue d’Alsace • P.O. Box. 2233 • L-1022 Luxembourg
Tel. : (+352) 4970-1 • Fax : (+352) 4970-2209
• www.paulwurth.com