| (Mio. DKK) |
2005 |
2004 |
| Revenue |
1.003
|
1.004
|
Operating profit before depreciation and
amortisation |
81
|
96
|
| Operating profit (EBIT) |
38
|
54
|
| Net financials |
(22)
|
(31)
|
| Profit before tax |
16
|
24
|
Sales and distribution
Hardis revenue for 2005 was DKK 1,033 million, against DKK 1,004 million the year before. France, which is Hardis largest market, achieved strong sales in line with 2004, which was a record year. Sales in northern Europe developed satisfactorily in all countries, except Sweden. Hardis sales in Spain declined to the lowest level in many years on account of the drought. Sales to Eastern Europe, including the ten new EU member states, continued the positive trend from the year before. Sales to the Czech Republic, in particular, saw considerable increases. Australia, normally Hardis second-largest market, had a weak year in 2005 because of the very bad harvest in 2004/05. Australian farming is not subsidised, for which reason a year with low earnings results in a considerable decline in investments in machinery by farmers. In 2005, Hardi Australias revenue declined by approx. DKK 50 million relative to 2004. On the other hand, Hardi saw an increase in revenue of approx. DKK 50 million in North America. The increase is primarily due to fear of the Asian rust fungal disease which emerged for the first time in North America in 2005. In this situation, many farmers wanted to invest in their own sprayer, rather than being dependent on contractors. The shift in revenue from the Australian high-price market to the US low-price market in 2005 resulted in a drop in Hardis gross margin.
Product development and production
Following several years of development work, the New Commander trailer series was introduced in 2005. The sprayer is available with three tank sizes (3,200 litres, 4,400 litres and 6,600 litres) and is now being marketed throughout Europe, and from mid-2006 also in Australia and North America. The new series, which is also available in a computercontrolled version, has set a new standard for field sprayers and won nine international prizes in 2005. The modular design of the series will contribute to improving Hardis profitability in the coming years.
Outlook 2006
For 2006 as a whole, Hardi expects revenue of approx. DKK 1,040 million and a profit before tax in the region of DKK 30 million. Hardis cash flow is expected to improve significantly.