1) Including sales with other divisions in the Group
The Technology Division of Salzgitter AG comprises mechanical engineering companies that operate internationally. KHS GmbH (KHSDE), a company holding a leading international position in filling and packaging technology, represents the mainstay of sales. The KHS Group is a full-line supplier, from intralogistics through processing to the filling and packaging of beverages. Other companies of the division sell special machinery for the shoe industry and specialize in the manufacturing of rubber and silicon injection molding machinery. In addition, RSE Grundbesitz und Beteiligungs-GmbH (RSE), a company managing and developing commercial real estate in Germany, is also assigned to the Technology Division.
According to the statistics of The German Engineering Federation (VDMA), the sector's order intake was in a slight downtrend overall compared with the prior year, which was primarily attributable to the contraction of domestic order activity caused by general reticence as regards capital investment. The market for food and packaging machinery proved stable.
New orders received by the Technology Division significantly exceeded the year-earlier level. As before, this success continues to be mainly due to the acquisition of premium major projects in the filling technology business by the KHS Group. These contracts are instrumental in regaining the previous market share. The order intake of Klöckner DESMA Schuhmaschinen GmbH (KDS) was very successful as well. Orders on hand were appreciably higher than a year ago.
In the reporting period, segment and external sales climbed in comparison with the 2012 figures. The KHS Group outperformed the previous year's level, as opposed to the KDE Group that suffered sales losses especially due to ongoing reluctance to invest in the automotive business and weak growth in the Indian market. The sales of KDS remained stable.
The Technology Division generated a pre-tax profit of € 5.6 million in the first half of 2013, thereby more than doubling its result in comparison with the prior year period. In the case of the KHS Group, the gratifying result was based on high capacity utilization, and the ongoing success of the "Fit4Future" program. By contrast, the KDE Group reported a substantial decline in its profit; KDS remained at the previous year's level.
The KHS Group is stringently pursuing its streamlining measures that are geared toward achieving sustainable competitiveness and profitability. The "Fit4Future" program launched for this purpose comprises eleven components. The program is aimed at streamlining the Group, lowering costs, enhancing the flexibility with which the volatile order intake is handled, and reducing complexity by focusing production and as well as standardizing the global product program.