DMG MORI continues to deliver sustained business development
- Sales revenues rose to € 1,090.2 million (+5%; previous year: € 1,034.4 million)
- EBT was at € 65.7 million (previous year: € 64.6 million)
- Earnings after taxes increased to € 45.3 million (previous year: € 44.6 million)
Bielefeld. DMG MORI AKTIENGESELLSCHAFT completed the first half year of 2015 according to plan: Order intake of € 616.1 million in the second quarter exceeded the previous year (€ 608.9 million) as well as the first quarter (€ 587.2 million); in the first half year it was at € 1,203.3 million (previous year: € 1,210.1 million). Sales revenues reached € 1,090.2 million (+5%; previous year: € 1,034.4 million). EBITDA amounted to € 94.9 million (previous year: € 90.2 million), EBIT reached € 68.4 million (previous year: € 67.8 million), and EBT rose to € 65.7 million (previous year: € 64.6 million). As at 30 June 2015, the group reported earnings after taxes of € 45.3 million (previous year: € 44.6 million). Especially the markets in Asia and North America had a positive impact on our business development in the first half year.
Sales revenues in the second quarter reached € 551.8 million (previous year: € 529.3 million). For the half year, sales revenues rose to € 1,090.2 million and were thereby 5% above the previous year's value (€ 1,034.4 million). International sales revenues of the group rose by 8% to € 733.3 million. Domestic sales revenues amounted to € 356.9 million. The export quota amounted to 67% (previous year: 65%).
In the second quarter, order intake amounted to € 616.1 million and was thus above the previous year’s level (€ 608.9 million). In the first half year order intake amounted to € 1,203.3 million (previous year: € 1,210.1 million). Domestic orders were € 397.9 million (previous year: € 431.8 million). International orders amounted to € 805.4 million (previous year: € 778.3 million). Thus the share of foreign business is 67% (previous year: 64%).
The key income figures of the DMG MORI group developed as follows: As at the end of thefirst half of the year, EBITDA amounted to € 94.9 million (previous year: € 90.2 million), EBITachieved € 68.4 million (previous year: € 67.8 million) and EBT rose to € 65.7 million (previous year: € 64.6 million). As of 30 June 2015, the group reports earnings after taxes of € 45.3 million (previous year: € 44.6 million). In the second quarter, EBITDA achieved € 52.5 million (previous year: € 50.7 million), EBIT amounted to € 38.4 million (previous year: € 39.4 million) and the EBT reached € 37.8 million (previous year: € 38.5 million).
Investments in plant, property and equipment as well as intangible assets amounted to € 49.4 million in the first half year (previous year's value: € 56.3 million).
The expenses for research and development in the first quarter amounted to € 22.9 million (previous year: € 22.0 million). With 19 world premieres in the year 2015, DMG MORI emphasizes its global innovation and technology leadership. Our research and development work concentrates on the industry highlight – the EMO 2015 in Milano. From 5 to 10 October we will here present 39 exhibits, 10 of them are world premieres. Besides our app-based control and operating software CELOS the main focus will lay on the ECOLINE series and the automatic turning lathes.
On 30 June 2015, the group had 7,269 employees, of whom 267 were trainees (31 Dec. 2014: 7,166). The number of employees rose by 103. At our domestic companies, 3,973 employees are on staff (55%) and 3,296 employees (45%) at the foreign companies. Personnel costs amounted to € 274.2 million (previous year's period: € 247.1 million). The personnel ratio was 23.8% (previous year's period: 23.0%).
The share price of DMG MORI AKTIENGESELLSCHAFT at the start of the second quarter was quoted at € 30.65 (01 April 2015) and closed at a price of € 32.36 at the end of the reporting period (30 June 2015). With the expiry of the voluntary public tender offer on 13 April 2015 and following the majority takeover by DMG MORI COMPANY LIMITED, share price deviations and thus the volatility of the share has reduced considerably. The share currently lists at € 32.12 (27 July 2015).
The global market for machine tools in the year 2015 is expected to develop once again at the level of the previous years. The German Machine Tool Builders' Association (VDW) and the British economic research institute Oxford Economics, in their most recent forecast of April this year, expect growth of 3.3% in the worldwide consumption to reach € 62.7 billion. The German machine tool market is also expected to grow in the course of the year. Oxford Economics forecasts a growth of 2.0% in consumption for the whole year (2014: -1.0%); in April a rise of 3.5% was expected.
We expect that the global economic development will remain volatile on the whole in the second half of the year. In particular, unresolved sovereign debt problems in Europe and the related uncertainty in the markets will further impair the development of the EU countries in the coming months. Macroeconomic uncertainties are having a significant effect on our customers' propensity to invest. Against this background, also the future course of business is more difficult to plan.
Order intake and sales revenues in the third quarter will likely develop at a more modest level. Nevertheless we confirm our forecast for the current financial year: We continue to plan with an order intake of around € 2.4 billion. Based on these expectations sales revenuesshould amount to around € 2.25 billion. On the assumption that the market development will continue according to our expectations, we plan to achieve EBIT of around € 165 million and EBT of around € 160 million. Furthermore, we are assuming a positive free cash flowbetween € 10 million and € 20 million for the entire year. Provided that these figures are achieved, we plan to pay a dividend for the financial year 2015.
Disclaimer, Forward-looking statement
Statements relating to the future:This press release contains statements relating to the future, which are based on current estimates by the management regarding future developments. Such statements are based on the management's current expectations and specific assumptions. They are subject to risks, uncertainties and other factors, which could lead to the actual future circumstances including the assets, liabilities, financial position and profit or loss of DMG MORI AKTIENGESELLSCHAFT differing materially from or being more negative than that those expressly or implicitly assumed or described in these statements. The business activities of DMG MORI AKTIENGESELLSCHAFT are subject to a series of risks and uncertainties, which may result in forward-looking statements estimates or forecasts becoming 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 stated, expected, anticipated, intended, planned, aimed at, estimated or projected in these statements. Forward-looking statements must not be understood as a guarantee or assurance of 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 Nagoya, Japan. This release refers exclusively to DMG MORI AKTIENGESELLSCHAFT. If reference is made in this release to the “DMG MORI group”, this refers exclusively to the DMG MORI AKTIENGESELLSCHAFT and its group companies.