Germany-based SMS Group has announced that in 2012 its order intake decreased by 17.2 percent to €2.83 billion compared to the previous year, while its sales revenues amounted to €3.23 billion, increasing by five percent year on year.
According to SMS Group's statement, both business areas, SMS Siemag and SMS Meer, clearly felt the impact of customers' restraint in placing orders. Specifically, in 2012 order intake by SMS Siemag contracted by 24 percent to €1.51 billion, while SMS Meer experienced a 16 percent decrease to €1.15 billion, both year on year.
SMS Meer stated that with the acquisition of a majority stake in Luxembourg-based plantmaker Paul Wurth, the company added roughly €500 million to its total order volume reflecting a net group result of €258 million, almost matching the 2011 level.
Based on the continued high level of orders in hand, and taking into account the effects of the first full year of consolidation of the Paul Wurth this year, SMS Group expects a modest increase in sales compared to 2012, but a decline in profit.