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DMG Mori announces record order intake

Company raises forecast
DMG Mori announces record order intake

Source: DMG Mori

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After a strong first quarter 2022, DMG Mori achieved new record figures for order intake and free cash flow in the first half-year — and this against the background of high volatility and a more difficult market environment. Based on this successful business development, the company is raising its forecast for 2022.

DMG Mori achieved a successful business development under difficult market conditions in the first half of 2022.

(Source: DMG Mori )

The global market for machine tools continued to be impacted by geopolitical factors. Global supply and material shortages, rising prices for raw materials, transport, logistics and energy as well as high inflation, the ongoing war in Ukraine and the lockdown in parts of China affected demand for capital goods. In this challenging market environment, DMG Mori achieved order intake of 813.6 million euros in the second quarter and thus recorded the best second quarter ever in the company’s history (+23 percent; previous year: 658.9 million euros).

In the first half year, DMG Mori also reached a new record for order intake: orders increased by +34 percent to 1,675.2 million euros (previous year: 1,248.7 million euros). As a result, order intake in the first six months not only exceeded the pre-corona level 2019 (+19 percent; 1,412.3 million euros) but was even +6 percent above the record figure of 2018 (1,577.1 million euros). New machine business in particular performed well with +36 percent and reflected the increased demand for our holistic and sustainable automation and digitization solutions. Domestic orders rose to 500.1 million euros (+31 percent; previous year: 382.4 million euros). International orders increased to 1,175.1 million euros (+36 percent; previous year: 866.3 million euros). The share of international orders was 70 percent (previous year: 69 percent).

Continued difficult materials and logistics situation

In the second quarter, sales revenues rose by +10 percent to 562.6 million euros (previous year: 511.9 million euros). In the first half year, sales revenues grew by +20 percent to 1,123.6 million euros despite the continued difficult materials and logistics situation, which was further intensified by the lockdown in parts of China (previous year: 933.5 million euros). The increase was due to the good new machine as well as the service and spare parts business. DMG Mori has so far been able to avoid serious production interruptions thanks to a stable, long-standing network with partners and suppliers. Domestic sales were 365.9 million euros (previous year: 299.4 million euros). International sales amounted to 757.7 million euros (previous year: 634.1 million euros). The export share was 67 percent (previous year: 68 percent).

Results of operations, financial position and net worth

The results of operations improved significantly: Ebitda rose to 67.4 million euros in the second quarter (previous year: 46.5 million euros). Ebit increased by +50 percent to 45.7 million euros (previous year: 30.4 million euros). The Ebit margin improved to 8.1 percent (previous year: 5.9 percent). EBT amounted to 45.7 million euros (previous year: 29.1 million euros). EAT grew to 32.2 million euros (previous year: 20.3 million euros).

In the first half year, Ebitda rose to 140.4 million euros (previous year: 74.2 million euros). Ebit improved by +141 percent to 101.6 million euros (previous year: 42.2 million euros). The Ebit margin doubled to 9.1 percent (previous year: 4.5 percent). EBT increased to 101.8 million euros (previous year: 40.6 million euros). The group reported EAT of 71.8 million euros as of 30 June 2022 (previous year: 28.3 million euros).

The financial position was also stable at a high level: free cash flow amounted to 70.9 million euros in the second quarter (-4 percent; previous year: 73.6 million euros). In the first half year, free cash flow rose to a new all-time high of € 126.3 million (+12 percent; previous year: 113.2 million euros).

As of 30 June 2022, the group had 6,726 employees, including 166 trainees (31 Dec. 2021: 6,821). The number of employees therefore remained nearly unchanged compared to year-end 2021. Personnel expenses amounted to 288.3 million euros (previous year: 262.3 million euros). The personnel ratio improved to 25.1 percent (previous year: 27.2 percent).

Outlook for order intake and free cash flow raised

2022 continues to be marked by high volatility and uncertainty — impacted by the war in Ukraine, disrupted supply chains worldwide, the shortage of materials, high inflation as well as rising prices for raw materials, transport, logistics and energy. In addition, there are rising interest rates, which affect the financing of capital goods as well as a possible gas embargo with unforeseeable economic consequences for the industry.

DMG Mori benefits from its consistent realization of the strategic fit of automation, digitization and sustainability. The company is strengthening its global presence with a new production plant in China. Holistic automation and integrated digitization solutions extend the core business with machine tools. The machine engineering company plans to further expand the digital subscription business model PAYZR for Software-as-a-Service and Equipment-as-a-Service.

Due to the successful business development, DMG Mori raises the order intake and free cash flow forecasts for the financial year 2022: The management is now planning order intake of around 2.7 billion euros (previously around 2.5 billion euros). Sales revenues are further expected to be around 2.3 billion euros. Ebit is to be unchanged at around 180 million euros. Free cash flow is estimated at around 150 million euros (previously around 130 million euros). 2022 nevertheless continues to be challenging, the company states.


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