KUKA AG, the parent company of KUKA Robot Group, has exceeded expectations in the first two quarters of this year. With sales growth of about 23 percent to 615.1 million euro (previous year 501.8), the former IWKA AG is on a solid financial footing. The KUKA Robot Group, in the Robotics Division, saw an increase of 20.3 percent in new orders in the first half of 2007 to 226.2 million euro (previous year: 188). Sales were up by 4.8 percent to 196.8 million euro. 45 percent of orders came from the automotive industry, while customers in the general industry sector accounted for 46 percent.

KUKA Group reported significantly improved financial results in the second quarter of 2007. Net income (earnings after taxes) in the second quarter of 2007 was €79.6 million, following a loss in the prior year's second quarter of - €55.8 million. The successful sale of the Packaging division generated significant earnings of €66.5 million in discontinued operations, after the substantial loss of - €48.6 million in the second quarter of 2006. Overall, net income (earnings after taxes) for the first half year was €80.8 million, which compares to a loss of - €62.2 million in the first half of 2006. The Group's equity ratio is thereby now 24.7 percent, compared with 11.8 percent a year ago. In parallel, thanks in particular to the sale of the Packaging division, net debt was turned around from - €201.7 million as of June 30, 2006 to a positive net cash position of €47.0 million.

The growth on the operational side of the business was also extended into the second quarter of the business year. An EBIT of 18.5 million was achieved in the second quarter of this year, compared to an operating loss of -  n€1.4 million in 2006. In the first half of 2007, the Group generated an EBIT of €28.3 million, whereas a year earlier the earnings contribution was only €0.5 million.

In the second quarter of 2007, the EBIT margin reached 5.7 percent. In the first quarter of 2007 it was 3.4 percent, and in the second quarter of 2006 it was -0.5 percent. The EBIT improvement was primarily the result of the higher sales revenues and improved total output in both divisions. Both the Robotics and Systems division grew very satisfactorily and were able to beat last year's margins. In the Systems division, KPTO's pay-on-production contract in the United States contributed substantially to EBIT improvement.

Orders received in the second quarter of 2007 came in at €288.0 million, 7.7 percent below the prior year's €312.1 million. This is a short-term effect caused by the high orders received in the second quarter of 2006 in the Systems division. The Robotics division, which is not subject to these typical fluctuations to the same extent, reported orders received of €109.4 million, which is again significantly higher than the comparable prior year's results.

Orders received of €724.9 million during the first half year were up 9.9 percent, significantly above the comparable 2006 half-year bookings of €659.7 million. The Robotics division's cumulative results jumped 20.3 percent over last year and orders received in the Systems division were 6.1 percent higher than a year earlier. The Group's orders received at the half-year mark were therefore above forecast.

Sales revenues rose significantly in the quarter just ended. While the Group generated revenues of €324.4 million in the second quarter of 2007, the comparable 2006 result was only €264.6 million, representing a jump of 22.6 percent.