Baggage Handling Systems at Airports

Veghel – Vanderlande Industries, a leading player on the global market for design and delivery of complex automated material handling systems, achieved an order intake of EUR 611 million in financial year 2010 (ending March 31st 2010). This order intake is comparable to that in the previous financial year and provides the company with an order book amounting to EUR 811 million, a solid starting position for the company that currently operates in a difficult market.

Sales, at EUR 549 million, were 16% lower than the previous year, reflecting the impact of the economic downturn. Successful execution of projects and services led to a net income of EUR 26 million, compared with EUR 35 million in the last financial year. The number of employees rose by 96 to 2039 (+5%), mainly due to the extension of on-site Customer Services activities.
 

Michiel Peters, President and CEO of Vanderlande Industries, commenting on these results:

“Our order intake was satisfactory, considering the impact that the economic downturn is having on our markets. We have a balanced portfolio with activities in a range of regions and markets, and this proved to be valuable in maintaining order intake at a high level. As a result our order book is strong, which provides a solid basis for the coming years.

The sales decrease to EUR 549 million reflects the effects of the economic downturn. As a project company, we have the necessary flexibility to cope with fluctuations of this kind. Successful worldwide delivery of numerous projects and services led to a satisfactory net result on sales of 4.7%.

Although world air travel volumes have been recovering since last summer they are still below pre-crisis levels. The market’s appetite to invest in new systems has therefore been low. However we were able to increase the order intake in this segment, further improving our position as market leader.

The recession had a substantial impact on the market for distribution systems, and many investment plans were cancelled or deferred. Our market focus includes some sectors less affected by the recession which, combined with our broadened geographical scope, partly compensated for the low market activity.

The parcel and postal business is always highly sensitive to the economic cycle. During the second half of the financial year we saw some first, although still hesitant, signs of increased investment activity, and we obtained a number of orders.

Our Customer Services business remained strong because economic conditions have driven customers to defer investments in new systems and to rely more on their existing installed systems. Together with their need to continuously increase process performance, and the structural trend to outsource service for systems, this is resulting in a continued increase in the demand for maintaining and improving material handling systems and related processes.

We successfully delivered orders worldwide, in Asia, Europe, Africa and the Americas, and further built our reputation as a leading provider of automated material handling systems and services. Delivering orders to the satisfaction of our customers and continuously improving their logistics process performance is the added value our customers expect, especially in these times. We will continue doing this.”

Outlook: People and innovation key to future success

The Company refrains from making predictions for financial year 2011, but longer-term growth potential is seen in all segments. It is therefore continuing to develop and launch new products and system concepts in an industry that is driven by innovation. The Company’s strong competences in product development, systems engineering, software engineering and system integration are key success factors in the automated material handling market.

In a world of technology, we believe in people. We are continuing to recruit top talent both for developing new products and for delivering innovative customer projects. Because people make the difference.

Profile of Vanderlande Industries

Vanderlande Industries provides automated material handling systems and services. The company is active in the markets for Baggage Handling at airports, automated logistics processes in Distribution Centres and sorting solutions in Parcel and Postal facilities. The company implements material handling systems of all sizes, ranging from local sorting depots, airports and distribution centres to the world’s largest facilities. Vanderlande has sales of EUR 549 million and employs 2 039 people of whom approximately 50% have a college or university degree.

Its systems and services focus on improving customers’ logistics processes and increasing their logistics performance today, tomorrow and throughout the entire life cycle. The company strives for close cooperation with the customer, extending from initial analysis of the underlying business processes through to total life-cycle support.

To achieve this, the company has a wide product range and industry knowledge, and possesses capabilities in the relevant disciplines. These range from system design and engineering, through supply chain management and manufacturing, to information and communication technology, system integration, project management and customer services.

Vanderlande Industries is a global player with extensive experience in many industries and references in all major regions of the world. It operates locally through Customer Centres that handle all key business functions and maintain direct contacts with customers.

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For more information:

M. Peters, President and CEO                                  Tel     +31 (0)413 49 58 17

H. Molenaar, Managing Director and CFO                  Tel    +31 (0)413 49 52 02

F. van Duren, Manager Corporate Communications    Tel     +31 (0)413 49 54 29

www.vanderlande.com

e-mail: frans.van.duren@vanderlande.com