Group earnings before taxes in fiscal 2003 were Euro 94.3 million, with the mining division making the greatest contribution to earnings. DBT’s EBIT contribution of Euro 24.6 million was the best result achieved to date by the original equipment manufacturer, despite a decline in turnover to Euro 507 million, which was due to exchange rates.

DBT’s cash-flow yield at 13.4% was higher than capital costs “and represents an exceptionally high level for the mechanical engineering industry,” according to the RAG annual report for the fiscal year 2003.

In 2003 DBT focused on expanding the volume of business in export markets, particularly in USA and China. DBT’s biggest single market remains Germany where it supplies the bulk of the longwall equipment but a decline in the German service market has impacted on DBT subsidiary DBT Bergbau-Service GmbH. The workforce was reduced by 117.

During the year complete roof support shield systems were supplied to three American and one Australian mine. In China the company gained the largest single order in its history for almost 500 shields, designed for use in a seam thickness of up to 5.5m. These shields are to be supplied this year. During 2003 DBT gained a foothold in the room an pillar segment with the supply of a new continuous miner CM30M2 to an American and Australian mine. The company is negotiating with South African mines for this equipment.

With the recent sale of its hard coal mining business completed, including mines in the USA, Australia and Venezuela, RAG Coal International said it will concentrate on the remaining businesses of coal trading and mining technology.

“By targeted investments in these areas, we want to both generate further growth and maintain income at its high level,” the report said.