Group status In 2014 we started an optimisation process of the DLG Group to improve the key economic indicators. Performance-wise, we delivered record earnings on ordinary activities (EBITDA),which can be attributed to good growth in our three strategic business areas and a significant cost improvement over last year With a turnover of close to DKK 60 billion DLG is manifesting its position as one of Europe’s largest agricultural companies in terms of revenue. Earnings after taxes (EAT) in 2014 were affected by the considerable and necessary write-down of the booked values in the subsidiary Kongskilde. This means that our result after tax has turned out negative. The write-down is part of making Kongskilde ready for a potential sale and is of a purely accounting nature, which does not affect DLG’s liquidity. It puts an end to an unsuccessful strategy in production of farming equipment. After many years of great expansion and top-line growth we have initiated an ambitious streamlining process at the DLG group, which will extend over 2014 brought many market challenges. It is in this context gratifying to note that our three core business areas performed much better than in 2013. Within Farm Supply, we have achieved our best result ever in Denmark. This is due to our initiated implementation of lean in production and logistics together with a new retail structure. In Germany, we maintained the earning levels from last year in a very competitive market, but we have a clear ambition to increase earnings several years. This includes cost reductions and process optimisation, especially within manufacturing, logistics, administration and IT. Only by making it better, faster and more efficient than our competitors can we maintain and strengthen our competitiveness. In this way we can help optimise the production economy of our customers, which is currently a major demand. At the same time, we will continuously evaluate businessareas that in terms of, strategy or earnings are not performing as expected – with the purpose of a com plete or partial divestment.
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