G&D reports improved profitability

Giesecke & Devrient (G&D) has reported improved results across all its business units for the 2006 fiscal year. Cards and Services – its second-largest business unit – withstood pressure on margins to grow sales by 3.8% to 484 million euros. Government Solutions – its third-largest division, specialising in security documents, passports and ID card – generated 113 million euros in sales in 2006.

G&D’s Banknote business unit also experienced high levels of growth, while the company reports that its New Business division has delivered “several promising projects”.

The company says that in 2006, all of its business units combined (with a worldwide workforce of 8,300) generated almost 1.3 billion euros in revenues, representing a 5% increase on the previous year. Earnings (EBIT) rose 15.5% to 93 million euros, while the return on sales reached 7.2%. Net income for the year amounted to 81 million euros. The group also increased its research and development investment by almost 12%, to 76 million euros.

G&D also reports a promising start to 2007. "We expect to see sales grow up to 10% and income to rise even more in 2007," says Dr Karsten Ottenberg, chairman of the Management Board and CEO of G&D. He adds that the company plans to invest even more in innovation. "We will increase research and development expenses another 30% this year to almost 100 million euros."