Headland and KUKA Robotics partner to deliver advanced automated robot technology

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Monday 14th of September 2009

Headland and KUKA Robotics partner to deliver advanced automated robot technology

Press Release from HEADLAND MACHINERY

Headland and KUKA Robotics have joined forces to offer the Australian and New Zealand markets advanced solutions in the field of robot technology and systems engineering. Headland will be responsible for the supply, service and spare parts of KUKA robots and will partner with integrators and system providers to offer state-of-the-art automated solutions to the market.

Marand Precision will continue to be actively involved with KUKA Robotics and Headland as a KUKA Robotics Master Systems Integrator with a focus on complex integrated robotic solutions. Marand has taken a strategic decision to re-focus their business on automation, integration capabilities and divest themselves of the ongoing responsibilities as the KUKA Robotics agent.

Innovation and automation is the key to success in today’s competitive market place. Embracing innovative technology and developing new ways to compete on a global scale is essential to securing the future for manufacturing in Australia. KUKA Robotics and Headland will meet the evolving needs of the market by delivering advanced automated robot technology and providing national service and support.

ABOUT KUKA Robotics

KUKA Robotics, based in Germany, concentrates on advanced solutions for the automation of industrial production processes. Ever since the company was founded over 100 years ago, it has stood for innovation in mechanical and systems engineering; it is one of the world's leading suppliers in the field of robot technology as well as in plant and systems engineering. Having come of age in the cutting-edge technology of the European automotive industry, KUKA Robotics is now increasingly supplying state-of-the-art technology in other sectors and regions. With their ideas, concepts and solutions for the automation of industrial production processes, more than 6,000 employees generate a business volume of around EUR 1.3 billion.

ABOUT HEADLAND

Headland is a leading supplier of innovative and high-quality products and services to customers throughout Australia and New Zealand. Our expertise assists customers adapt and prosper by utilising world leading technology that deliver competitive advantage.

We employ the best and brightest people and empower them to achieve performance excellence. Our culture is defined by diversity, open dialogue, mutual respect, clear goals and decisive leadership. Our focus is on delivering world class products combined with a dedicated team of highly competent, factory trained engineers with years of experience in the manufacturing industry. To efficiently service our customers we have established local branches
throughout Australia,(Melbourne, Sydney, Brisbane, Adelaide and Perth). Our national representation allows us to respond promptly, cost effectively and build valued partner relationships.

We welcome Stuart Simmons as our Robotics and Automation Manager to the Headland team. Stuart has 20 years experience in the Australian manufacturing industry and recently over six years experience in integrating robotic solutions to a wide range of industries, applications and customers. Stuart will oversee all robotic enquiries (stuarts@headland.com.au) and will ensure the most practicable solution is recommended to our customers.

To stay competitive within industry customers need to automate to reduce costs and improve quality. We see robotics as the most flexible and cost effective solution for automation from simple material handling applications to complex assembly systems.

KUKA Robotics offers a diverse range of robots from 3kg to 1300kg payloads as well as specialist robots including Palletiser, Gantry, Clean Room, Heat Resistant, Welding Solutions and Stainless Steel with high IP rating for food and medical applications.

For information, please contact Headland on (03) 9244 3500 or visit www.headland.com.au

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At KUKA Group's financial results press conference held in Munich on March 16, 2010, KUKA Aktiengesellschaft's Executive Board gave an account of the programs that have been introduced and implemented to further develop the Group. Setting the Group's strategic direction will include bundling all KUKA initiatives relating to the future in the "Advanced Robotics" section. The Executive Board was able to report on the first successful industrial application of the lightweight robot. KUKA also installed an efficient management organization in recent months. The divisions have been reorganized, and sales and technology activities will be bundled throughout the Group. The Executive Board reported that the Group's financing has been extended and that the cost cutting program continues.The key 2009 business numbers are as follows: As a result of the global economic crisis, KUKA Group's orders received plummeted in the first quarter of 2009 and stabilized at a low level over the course of the year. The situation is primarily due to declining investments by the automotive industry and tighter credit in the general industry sector accompanied by corresponding pressure on supplier prices. Overall, the difficult general economic conditions had a negative impact on KUKA Group's business performance in fiscal 2009.However, KUKA's orders received were better than those of the other players in this market. Orders received declined 29.4 percent year-over-year, going from EUR 1,279.9 million in 2008 to EUR 903.3 million in 2009.The Robotics division's orders received came in at EUR 324.3 million in 2009, a drop of 30.2 percent compared to the year prior. The business with automotive sector customers was particularly hard hit. The general industry and service sectors were down by a lesser amount. The Systems division's orders received declined 28.0 percent year-over-year, going from EUR 854.9 million in 2008 to EUR 615.4 million in 2009.KUKA Group's consolidated sales revenues for 2009 came in at EUR 902.1 million, down 28.7 percent from 2008's EUR 1,266.1 million. Here too, the two divisions were similarly affected. The Robotics division's sales revenues declined 30.3 percent: from EUR 474.4 million in 2008 to EUR 330.5 million in 2009. The Systems division's sales revenues went from EUR 837.5 million in 2008 to EUR 605.5 million in 2009, a drop of 27.7 percent. The Group's book to bill ratio (orders received versus sales revenues) was thus 1.0.Order backlog was EUR 543.5 million as of December 31, 2009, nearly the same as at the end of 2008. KUKA Group's capacity utilization thus remains stable and continues to be notionally secured for five months.The lower business volume and subsequent restructuring costs, together with other one-time charges, drove the operating result (EBIT) down from EUR 52.0 million in 2008 to EUR -52.9 million in 2009. Adjusted for special expenditures, KUKA Group's operating result (EBIT) came in at EUR -14.3 million, within the revised guidance range of EUR -10 million to EUR -15 million. Overall, the earnings situation in fiscal 2009 was unsatisfactory as a result of the difficult market situation.In total, the loss for the year in 2009 (earnings after taxes) was EUR -75.8 million, which compares to last year's EUR 30.6 million. Earnings per share dropped from EUR 1.18 in 2008 to EUR -2.95 in 2009.However, a diligent inventory reduction initiative lead to improved cash flow. Cash flow from operating activities went from EUR -61.2 million in 2008 to EUR 4.8 million. After deducting EUR 27.0 million for spending on investments, free cash flow was EUR -22.2 million compared to EUR -166.9 million the previous year. KUKA Group's consolidated net debt went from EUR -53.6 million at the December 31, 2008 period end to EUR -48.5 million on December 31, 2009, down EUR 5.1 million.The cash inflow of EUR 27.4 million from the capital increase had a positive impact on equity. However, the loss for the year was EUR 75.8 million. Overall, equity was down EUR 52.7 million to EUR 160.8 million as of December 31, 2009. Equity went from 24.7 percent as of December 31, 2008 to 22.1 percent on December 31, 2009, down 2.6 percent.Because of the negative results, the return on capital employed (ROCE) was also negative in fiscal 2009. Over the past two years, the development of return on capital employed was strongly impacted by the Systems division's KTPO pay-onproduction contract, for which financing totaling EUR 77.1 million was redeemed in 2008. Among other things, this caused KUKA Group's capital employed to rise EUR 184.1 million, from EUR 150.7 million at the end of 2007 to EUR 334.8 million on December 31, 2008. At the end of 2009, KUKA Group's capital employed was back down to EUR 300.1 million.KUKA Group's work force shrank by 427 persons, going from 6,171 on December 31, 2008 to 5,744 as of December 31, 2009, which represents a year-over-year decline of 6.9 percent. The Robotics division had 252 fewer employees, with the total falling from 2,261 on December 31, 2008 to 2,009 as of December 31, 2009. The Systems division reported a drop of 247, the total count going from 3,781 on December 31, 2008 to 3,534 as of December 31, 2009. Due to the transfer of central functions to the shared service center, KUKA AG had 72 more employees Furthermore, the number of temporary workers went from 1,008 as of December 31, 2008 to 584 on December 31, 2009, a year-over-year drop of 42.1 percent. The remaining temporary workers are mainly based at KUKA's US subsidiaries. In total, personnel capacity declined 11.9 percent during the course of fiscal 2009.Efforts to predict the overall economic environment continue to be marked by uncertainty. At the same time, the current financial year 2010 will be one of transformation for KUKA. Further cost structure improvement and an enhanced corporate strategy will be the basis for generating sustainable profitable growth.