Pleasant growth at StarragHeckert in Q1 2011

Significant organic growth
Order intake which is subject to considerable quarterly fluctuations increased currency and acquisition adjusted by CHF 23 million or 69.7%. The market segments engineering and transport in particular contributed to this positive development. Dörries Scharmann (BU3) reports a still weak order intake in the first quarter of the year as a result of the uncertainty about the ownership of Dörries Scharmann which lasted until 19 January 2011.

Accordingly, sales revenue of CHF 83.8 million (currency and acquisition adjusted +8.9% compared to prior year’s period) was above order intake. Therefore, order backlog decreased to CHF 243 million by 31 March 2011 (-6.3% compared to pro forma CHF 259 million per 31.12.2010). In the first quarter 2011, an operating profit EBIT of CHF 4.3 million was achieved, compared to CHF 2.1 million in the same period of 2010. Thus, the EBIT margin achieved is 5.1% of sales revenue. Due to the lower volume in Business Unit 3, the margin was as expected below the pro forma EBIT margin 2010 of 5.7%.

Solid financing after capital increase
Total assets rose to CHF 341.3 million (pro forma per 31.12.2010: CHF 332.5 million). This increase is primarily due to increased accounts receivable which were very low at the end of prior year. Net debt as per 31.03.2011 amounted to CHF 48.5 million and the equity ratio was 34%.

On 2 May 2011, StarragHeckert received CHF 66.8 million as net proceeds from the completed capital increase. This amount is being used to pay back the bridge loan of Walter Fust of EUR 50 million to refinance the acquisition of Dörries Scharmann and for general business purposes. After the capital increase, StarragHeckert has again a comfortable net cash position and an equity ratio of over 50%.

Outlook unchanged
For 2011 StarragHeckert confirms the previously communicated outlook. Due to the improved investment climate, we assume that the order intake for the current fiscal year will be higher than the pro forma order intake 2010. However, sales revenue in 2011 will probably be lower than pro forma sales revenue for 2010. In 2011, sales development at Dörries Scharmann is negatively impacted by the still unsatisfactory level of new orders in the fourth quarter 2010 and the first quarter 2011. The same effect causes the EBIT margin 2011 to be expected below the pro forma EBIT margin 2010 of 5.7%.

StarragHeckert together with Dörries-Scharmann is the global leading supplier of technologically advanced machine tools for boring, turning, milling and grinding of medium to large metallic or composite workpieces.

Principle customers are internationally active companies in the aerospace, energy, transport and engineering sectors. The products, together with the technology and service offerings allow customers to achieve significant productivity gains. Group products are marketed under the Starrag, Dörries, Heckert, Scharmann, SIP, Droop+Rein, TTL, Berthiez, WMW and Ecospeed brands.

Headquartered in Rorschacherberg/Switzerland the group operates manufacturing plants in Switzerland, Germany, France, UK and India, as well as service and sales companies in various other countries.

The holding company is listed at the SIX Swiss Exchange (Symbol: STGN).

Contact
Dr. Frank Brinken CEO Phone +41 71 858 81 11 Phone +41 71 858 81 11

Gerold Brütsch CFO Fax +41 71 858 82 09 Fax +41 71 858 82 30