Germany´s Gardena (Ulm; www.gardena.com), which bills itself as Europe´s leading manufacturer of garden equipment, achieved its growth target of 10-12% in fiscal 2004/2005 (30 September). The company posted an EBIT margin of 11.6% (EUR 45.5m). This represents an increase of more than 14% against 2003/2004, managing board chairman Martin Bertinchamp said at the annual results press conference. He predicted sales growth in the single-digit percentage range and "again a disproportionate increase in earnings" for fiscal 2005/2006.

On a comparable basis with 2003/2004, sales declined by 4% in 2004/2005 to EUR 393.3m. An efficiency improvement scheme launched in 2004 is beginning to take effect, said the chairman. Among other moves, Gardena shut warehouses in European countries close to its German headquarters. Since October 2005, subsidiaries in these countries have been supplied from Ulm, improving utilisation of the central warehouse. This logistical reorganisation is to be continued.

Unlike many other converters, Gardena for the most part has been able to pass on higher raw material prices to its customers. In its home market, prices were increased by 3.2%. Expansion abroad will also be continued. Following the establishment of companies in Russia and more recently in Slovenia, as a springboard to the states of the former Yugoslavia, Gardena aims to establish new firms in the Baltic, Bulgaria, Finland, Greece, Romania and the Ukraine.

The company manufactures injection-moulded parts at three of its six manufacturing facilities (three each in Germany and the Czech Republic). About half of the 15,000 t of plastics processed each year in the OEM segment is used at Gerstetten-Heuchlingen / Germany, the other 50% at the Czech plastics and assembly sites of Bruntal and Vrbno Pod Pradedem. About 30% of the total – mainly PP and PS, plus some ABS – goes into subcontract orders, primarily for equipment covers, household appliance housings, car seats for children and equipment for logistics systems. Sales of this segment remained stable in 2004/2005 at just above EUR 40m.