The Demag Cranes Group applies a strategy geared to sustained profitable growth. Under the framework of this strategy, we measure and appraise organic and external growth opportunities by reference to set earnings targets.

The cost position of the Demag Cranes Group is further strengthened as a result of restructuring activities unanimously approved by the Supervisory Board on 18 May 2009 and largely implemented since. Major efficiency gains have already been achieved in past years. The successful restructuring of our Mobile Harbour Crane production is a prime example.

In the course of restructuring, we also continue to enhance Group integration. This includes pooling key management functions within Demag Cranes AG – functions such as finance and accounting, human resources, IT, marketing and corporate development. We can consequently now act more swiftly, uniformly and flexibly as a Group. By deploying our sales and service forces across segmental divisions, we can make faster and fuller use of new market openings.

A key feature of our strategy comprises stepping up sales activities in emerging markets, primarily in Asia. We are forging ahead with the development of sales channels and product innovations to boost sales of premium products. These markets also offer great scope for extending the product range into the middle price bracket. This enables locally based development teams to offer products precisely matched to market needs. We already have a good standing in these markets through our subsidiaries in the BRIC countries (Brazil, Russia, India and China) and the United Arab Emirates. This strong market position is underscored by the substantial rise in the share of Group business transacted in those markets in recent years. The projected competitive consolidation in established markets opens up more opportunities for profitable growth in emerging economies.

Growth in service business continues to be driven by increasing coverage of our installed base, which in electric cranes and hoists is the largest in the world. Emerging markets again offer potential in this regard.

Following on from the rope and chain hoists developed in recent years in the Industrial Cranes segment, we also continue to sustain our strong innovation record in Port Technology. Examples include the current Generation 5 Mobile Harbour Cranes together with developments in terminal automation and green technology. These offer strategic potential for the Demag Cranes Group alongside that created as logistics needs in the hinterland of maritime ports track growth in quayside cargo handling, and as emerging markets progress along their current trend.