Actual state: Annual Report 2010

After adjustment for currency effects, Kuhn Group boosted order intake 42%, or 33% in Swiss francs to CHF 976 million. At CHF 851 million, sales fell 10% short of the previous year, 4% after adjustment for currencies. Despite significant currency effects and excluding the CHF 64 million impairment on goodwill in the previous year, operating profit still rose to CHF 78 million, an increase of 10%. Excluding one-off effects of the previous year, the operating profit margin improved from 7.5% to 9.2%. Kuhn Group accounted for 42% of Group sales (2009: 44%).

CHF million	2010	2009
Order intake	976.1	735.4
Net sales	851.2	948.4
Order book	356.8	246.0
Operating profit (EBITDA)	113.1	109.4
Operating profit (EBIT) before impairment	78.2	71.1
Operating profit (EBIT)	78.2	7.4
Number of employees at 31 December	3 593	3 152
Average number of employees during year	3 401	3 438

In a contracting market environment, Bucher Municipal was able to hold its own and increase its market share. Sales declined 4% to CHF 373 million yet this translated to a 1% increase after adjustment for currencies and divestments. Order intake amounted to 381 million which exceeded that of the previous year by 3%, 6% after adjustment for currencies and divestments. Despite high pressure on margins as a result of the drop in demand, the division still boosted its operating profit from CHF 15 million to CHF 27 million, whereby the previous year was impacted by restructuring costs of CHF 10 million. Bucher Municipal accounted for 18% of Group sales (2009: 18%).

CHF million	2010	2009 1)
Order intake	380.6	371.0
Net sales	373.0	386.6
Order book	88.6	81.3
Operating profit (EBITDA)	35.2	22.9
Operating profit (EBIT)	27.3	15.0
Number of employees at 31 December	1 334	1 318
Average number of employees during year	1 346	1 375

¹⁾ Excluding Bucher Landtechnik (transferred to Bucher Specials)

Bucher Hydraulics used its great flexibility to take advantage of the unexpectedly strong upturn. At CHF 387 million, order intake was up 40% over the previous year, 47% after adjustment for currency effects. Sales increased 16% to CHF 371 million, 22% after adjustment for currency effects. The order book reached CHF 63 million which represents a return to more normal levels with an order backlog of around two months. Cost-cutting measures implemented during the previous year were highly effective so that the operating profit, which was impacted by CHF 22 million in impairment charges in 2009, could be boosted to CHF 37 million. At 10%, the operating profit margin returned to a doubledigit figure. The division accounted for 18% of Group sales (2009: 15%).

CHF million	2010	2009
Order intake	386.7	276.7
Net sales	371.4	319.8
Order book	62.9	45.6
Operating profit (EBITDA)	55.7	33.9
Operating profit (EBIT) before impairment	36.9	13.7
Operating profit (EBIT)	36.9	8.5
Number of employees at 31 December	1 544	1 317
Average number of employees during year	1 451	1 340

The late-cyclical, capital-intensive business of Emhart Glass was still suffering severely from the downturn during the year under review. Project activity only began to pick up during the second half of the year which saw order intake rise 23% to CHF 285 million, 34% after adjustment for currency effects. Sales declined by 15%, 7% after adjustment for currency effects, to CHF 259 million. Not only the drop in sales but restructuring costs of CHF 5 million as well as the negative impact of foreign currency movements caused by the strong Swedish krona and Swiss franc against the euro had an adverse effect on operating profit. With an operating result of CHF 3 million, the division generated a slight profit. Emhart Glass accounted for 13% of Group sales (2009: 14%).

CHF million	2010	2009
Order intake	285.2	232.4
Net sales	259.3	303.7
Order book	09.7	91.5
Operating profit (EBITDA) before restructuring	16.1	21.3
Operating profit (EBIT) before restructuring	8.0	12.2
Operating profit (EBIT)	3.0	12.2
Number of employees at 31 December	874	871
Average number of employees during year	869	909

Development within Bucher Specials' three independent businesses differed during the year under review. Business in winemaking equipment benefited greatly from product innovations and the European subsidy programme while the Swiss distributorship for tractors and agricultural machinery enjoyed stable demand. Fruit juice processing equipment, on the other hand, experienced a sharp decline. High fruit juice concentrate inventories with low market prices as well as a lack of major projects put a damper on investment activities. As a result, sales at Bucher Specials declined by 0.4% to CHF 187.0 million, but increased by 3.4% after adjustment for currency effects. At CHF 187.9 million, order intake was up 3.3% over the previous year, 7.3% after adjustment for currency effects. Operating profit of CHF 8.6 million fell short of the previous year by CHF 1.4 million. Bucher Specials accounted for 9% of Group sales (2009: 9%).

CHF Mio.	2010	2009
Order intake	187.9	181.9
Net sales	187.0	187.7
Order book	45.0	42.9
Operating profit (EBITDA)	11.0	12.4
Operating profit (EBIT)	8.6	10.0
Number of employees at 31 December	535	506
Average number of employees during year	553	537