DMG MORI achieves TOP financial year 2022
- Order intake increases to € 2,904.2 million (+15%; previous year: € 2,517.2 million)
- Sales revenues grow to € 2,365.7 million (+15%; previous year: € 2,052.9 million)
- EBIT rises to € 216.5 million (+75%; previous year: € 123.8 million)
- EBIT margin improves to 9.2% (+53%; previous year: 6.0%)
- Free cash flow amounts to € 171.7 million (-5%; previous year: € 179.9 million)
Chairman of the Executive Board Christian Thönes: “2022 was a year of TOP performance for DMG MORI and at the same time a year of major global challenges: worldwide supply and material shortages, high raw material, energy and transport costs, rising interest and inflation rates, but also the corona pandemic and above all the Russian war in Ukraine. Thanks to the consistent implementation of our strategic focus on automation, digitization and sustainability, we were able to reach and in some parts exceed the forecasts that were increased during the year.”
Order intake // All-time high in core business with machine tools and services
In 2022, the global market for machine tools was characterized by numerous exogenous factors. DMG MORI was able to reinforce and in some parts further expand its market position worldwide under again more difficult conditions. Order intake in the core business with machine tools and services rose by +15% to an all-time high of € 2,904.2 million (previous year: € 2,516.7 million). Both the new machine business and the service business contributed to this positive development. New machine business performed well at +15% and reflects the increased demand for our integrated and sustainable automation and digitization solutions. Service business also grew by +15% and reached a new record level. Domestic orders increased by +20% to € 894.4 million. International orders rose by +14% to € 2,009.8 million. The share of international orders thus amounted to 69% (previous year: 70%).
Sales revenues // Growth despite continued difficult materials and logistics situation
Sales revenues increased by +15% to € 2,365.7 million despite the continued difficult materials and logistics situation (previous year: € 2,052.9 million). The export ratio was 67% (previous year: 68%). DMG MORI was able to avoid production interruptions through consistent supplier and supply chain management as well as thanks to the stable, long-standing network of partners.
Results of Operation, Financial Position and Net Worth // EBIT margin reaches all-time high
Results of operations also developed successfully despite more difficult market and general conditions. The sustainable optimization of our cost structure and stringent implementation of our efficiency improvement measures paid off: EBITDA increased by +56% to € 297.8 million (previous year: € 190.8 million). EBIT rose by +75% to € 216.5 million (previous year: € 123.8 million). EBIT margin also marked an all-time high at 9.2% (previous year: 6.0%). EAT grew by +79% to € 153.4 million (previous year: € 85.6 million).
The financial position developed encouragingly: Free cash flow amounted to € 171.7 million and was thus below the record level of the previous year (-5%; € 179.9 million), but slightly above the pre-corona level 2019 (€ 168.8 million).
Employees // DMG MORI with a strong team
As of 31 December 2022, the group had 6,833 employees, including 237 trainees (previous year: 6,821 employees). DMG MORI is considered as an attractive employer and in 2022 was among the TOP 1% of a total of 160,000 rated companies in Germany as a “Leading Employer”. Personnel expenses amounted to € 566.3 million (previous year: € 522.7 million). The personnel ratio improved to 23.6% (previous year: 25.1%).
Research and Development // Strategic fit and focus on shopfloor are a match
DMG MORI keeps the research and development budget stable at a high level and presented 23 innovations in 2022 together with DMG MORI COMPANY LIMITED – thereof 3 world premieres, 6 automation solutions and 12 digital innovations including 8 technology cycles as well as 2 DMG MORI Components.
The combination of machines, technologies, users, automation and digitization enables a high degree of process integration for resource-saving and efficient production. DMG MORI is globally one of the most sustainable industrial companies and received the Platinum Medal in the Sustainability Rating 2022 from the internationally renowned assessment institute EcoVadis. This places us among the “TOP 1%” of over 35,000 evaluated companies worldwide. With high-precision, sustainable machine tools and holistic technologies, we are making a decisive contribution to a greener future.
Forecast 2023 // Confidence thanks to successful Open House and order backlog in 2022
2023 remains challenging. DMG MORI is looking ahead to the current financial year with confidence despite a highly volatile market environment. The reasons for this are, on the one hand, the solid order backlog of over € 1.6 billion from the previous year and, on the other hand, the successful start to the year with the Open House in Pfronten. At this traditional exhibition, DMG MORI already presented 7 world premieres to more than 6,000 international trade visitors.
DMG MORI will present many further innovations, new sustainable technology, automation and digitization solutions as largest exhibitor at the industry highlight of the year – EMO Hanover (18 to 23 September 2023). The following applies to all innovations: sustainability is mandatory! That is why we are focusing on three major areas for 100% green machines with the DMG MORI GREEN ECONOMY:
- GREENMACHINE – the resource-saving produced machine
- GREENMODE – the resource-efficient machine operation at our customers
- GREENTECH – new technologies, parts and applications for green innovations.
For GREENMODE, DMG MORI recently received the Energy and Media Efficiency (EME) certificate as the first machine tool manufacturer. The renowned TÜV SÜD Industrie Service GmbH confirms the effectiveness of our energy efficiency measures and our calculation methods: GREENMODE includes 13 different components, processes and tools that enable customers to increase the energy efficiency of our machines by up to 40% compared to the previous model.
For the financial year 2023, we plan order intake of around € 2.45 billion. Sales revenues are expected to be around € 2.35 billion. We estimate EBIT to be around € 170 million. Free cash flow is to be around € 80 million. Our forecasts are subject to the provision that the global market and economic conditions do not become more difficult. DMG MORI is strategically well positioned, has a high degree of resilience and deals quickly and agilely with global changes.
DMG MORI AKTIENGESELLSCHAFT
The Executive Board
Disclaimer, Forward-looking statements
Company Profile // DMG MORI AG
DMG MORI is a worldwide leading manufacturer of high-precision machine tools and sustainable technologies that are at the center of global value chains. At DMG MORI AKTIENGESELLSCHAFT around 6,800 employees generate sales revenues of over € 2.3 billion. Together with the mother company DMG MORI COMPANY LIMITED, sales revenues amount to around € 3.4 billion. In the "Global One Company", more than 12,000 employees are in direct contact with over 100,000 customers from 57 sectors. DMG MORI is present in 88 countries worldwide with 16 production plants, 113 sales and service locations.
Forward-looking statements //
This (press) release contains forward-looking statements, which are based on current estimates of the management regarding future developments. Such statements are based on management's current expectations and certain assumptions. They are subject to risks, uncertainties and other factors, as well as to the effects of the war in Ukraine, that could cause the actual circumstances, including the results of operations, financial position and net worth of DMG MORI AKTIENGESELLSCHAFT, to differ materially from or be more negative than those expressly or implicitly assumed or described in these statements. The business activities of DMG MORI AKTIENGESELLSCHAFT are subject to a range of risks and uncertainties, which may likewise render a forward-looking statement, estimate, or forecast inaccurate.
Should one of these factors of uncertainty or other unforeseeable event occur, or should the assumptions on which these statements are based prove incorrect, the actual results may differ materially from the results expressed, expected, anticipated, intended, planned, aimed at, estimated, projected or implied in these statements. Forward-looking statements must not be understood as a guarantee or assurance of the future developments or events contained therein.
There are two companies using the name “DMG MORI”: DMG MORI AKTIENGESELLSCHAFT with registered office in Bielefeld, Germany, and DMG MORI COMPANY LIMITED with registered office in Tokyo, Japan. DMG MORI AKTIENGESELLSCHAFT is an affiliated company of DMG MORI COMPANY LIMITED. This release refers exclusively to DMG MORI AKTIENGESELLSCHAFT. If reference is made in this release to “DMG MORI“, this refers exclusively to DMG MORI AKTIENGESELLSCHAFT and its controlled companies within the meaning of Section 17 of the German Stock Corporation Act (Aktiengesetz – AktG). If reference is made to "Global One Company", this refers to the joint activities of DMG MORI COMPANY LIMITED and DMG MORI AKTIENGESELLSCHAFT including all subsidiary companies.