Gildemeister Reports Profit, Sees Further Growth

Machine tool builder will raise its stake in partner Mori Seiki

Gildemeister AG has increased slightly its holding in Mori Seiki Co. Ltd. to 5.1%, making it the largest shareholder in that company. The two machine tool builders have maintained a cross-ownership strategy for about two years. Twice this year, Mori Seiki has purchased specially issued stock to raise its holding in Gildemeister to 20.1%. It is likewise the largest investor in the German company.

Mori Seiki designs and builds CNC lathes, multi-axis turning centers, and vertical and horizontal machining centers, and develops application systems. Gildemeister AG is a holding company for the DMG, Deckel Maho, Gildemeister brands, which include turning and milling technology, along with control systems.

In 2009 each company agreed to acquire a 5% share of the other, meaning Gildemeister’s current investment in Mori Seiki raises its position only marginally. In addition, each company cross-markets the others’ products and maintains regional service and supply programs for their partner’s brands

In its latest earnings report, Gildemeister announced second-quarter revenues of $2.83 million on the strength of improved demand for machine tools worldwide. In the second quarter of 2010 Gildemeister reported a loss of over $6 million. It said it expects its full-year revenue to rise, and to pay a dividend for the year.

Also, as of June 30 Gildemeister reports it has an order backlog of about $1.09 billion, an 8% increase over the second quarter of 2010.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish