German Paintshop Supplier Duerr Expects Auto Investment to Improve image

Duerr AG, the German paintshop supplier to automakers, said it will increase its full-year target relying on booming business in the US and China.

“We will decide in the third quarter whether we need to adjust our forecast, but we certainly won’t be discussing a downward revision,” Chief Executive Ralf Dieter told Reuters. “The investment climate is brightening.”

Duerr provides robots to paint car bodies and it predicts new orders this year to vary between 2.3 billion euro and 2.5 billion euro, and an operating margin of 7% to 7.5%. Last year the company’s incoming orders reached 2.60 billion euro, with a 7.4% margin. Duerr’s business got a boost from the 22% increase in auto sales in China during the first five months of the year.

“Some projects are now being tabled that automakers actually wanted to address next year, but as car sales increase, investments follow,” the Duerr CEO said. “Our customers in the U.S. are optimistic, so more is being invested in the retooling, modernization and automation of car plants. Many factories are manufacturing around the clock due to the continued boom in pick-ups.”

Source: Reuters