DOLMAR continues to record double-digit growth and create new jobs

DOLMAR, the renowned Hamburg-based manufacturer of power products for the forestry, horticultural and construction sectors, ended the 2005/2006 financial year to 31 March 2006 with yet another successful result – the seventh in seven years.

Continuing expansion

Buoyant sales at home and abroad pushed turnover up 16% to a new record high of € 108.6 million. During the year DOLMAR sold just over 470,000 power products, of which more than 420,000 were manufactured at the company’s Hamburg plant. This represents a 15% year-on-year increase at the Hamburg production plant.

Domestic sales performed well with healthy rates of growth achieved by the company’s dedicated dealer network. An even bigger boost to sales growth came from the flourishing collaboration with new distribution partners in the USA. Here sales of the DOLMAR brand actually doubled, while sales in France, the United Kingdom and Italy also showed a healthy increase.

Pre-tax profits ahead of expectations

High levels of investment in the development of new, low-emission products, combined with the start-up costs for the US sales and distribution operation, led to the anticipated fall in pre-tax profits in the first six months of the financial year 2005-2006. Revenue growth in the second half of the year largely compensated for this decline, however, so that total pre-tax profits fell by only approximately 10% to € 4.2 million. Under the terms of DOLMAR’s own company profit-sharing scheme all DOLMAR employees received the maximum allowable bonus payment for the financial year just ended.

DOLMAR creates new jobs

During the year under review the average size of the workforce at the company’s main production facility in Hamburg-Wandsbek was 465. This is an increase of almost 10% on the previous year’s figure. The full-time workforce, including trainees, expanded by 22 jobs year-on-year to a new total of 394.

7-figure investment in environmental technology and ground-breaking new products

The launch of a new range of petrol chainsaws for professional users had a positive impact on sales performance. Thanks to the use of lightweight materials and refinements in engine design, DOLMAR once again took the honours for the best power-to-weight ratio in this class. The highly successful disc cutter range was also updated, giving a further boost to sales in this product segment.

In the financial year just ended the company stepped up its investment in technology and engineering by more than 25% to € 6.7 million. Around two thirds of this money went into tools and moulds for new products, as well as into the development of envi-ronment-friendly engine technologies. The final phase of the new EU Directive for the reduction of exhaust gas emissions comes into force in 2007 – so the countdown has already begun.

Positive outlook for the coming year

With orders at record new levels and an intensive program of new product development under way, the outlook for the financial year just begun is optimistic. DOLMAR expects turnover to increase to € 120 million in the trading year 2006-2007.