DMG MORI SEIKI has a good start to 2014
- Order intake increased by 16% to € 601.2 million (previous year: € 518.7 million)
- Sales revenues were € 505.1 million (+8%; previous year: € 466.1 million)
- EBT increased to € 26.1 million (+73%; previous year: € 10.4 million)
- Earnings after taxes climbed to € 18.0 million (previous year: € 10.4 million)
- Cooperation strengthens market presence and product development
Bielefeld. The first quarter was according to plan for the DMG MORI SEIKI AKTIENGESELLSCHAFT. Order intake amounted to € 601.2 million (+16%), compared with € 518.7 million in the previous year‘s period. Sales revenues rose to € 505.1 million (previous year: € 466.1 million). The earnings situation continued to develop positively: EBITDA amounted to € 39.5 million (previous year: € 28.1 million), EBIT reached € 28.4 million (previous year: € 17.0 million) and EBT was € 26.1 million (previous year: € 15.1 million). As at 31 March 2014, the group reported earnings after taxes of € 18.0 million (previous year: € 10.4 million).
Sales revenues in the first quarter were € 505.1 million and thus exceeded the previous year’s figure by € 39.0 million (€ 466.1 million). Domestic group sales revenues increased by 12% to € 168.8 million and international sales revenues rose by 7% to € 336.3 million. The export ratio was 67% (previous year: 68%).
In the first quarter, order intake was € 601.2 million and thus 16% above the previous year (€ 518.7 million). Domestic orders amounted to € 222.7 million (previous year: 163.7 million); international orders amounted to € 378.5 million (previous year: € 355.0 million). Thus the proportion of foreign business amounted to 63% (previous year: 68%) in the first quarter of the financial year.
On 31 March 2014, order backlog within the group was € 1,128.0 million.
The DMG MORI SEIKI group was able to improve its key earning figures as of 31 March 2014 against the previous year: EBITDA amounted to € 39.5 million (previous year: € 28.1 million), EBIT amounted to € 28.4 million (+67 %; previous year: € 17.0 million) and EBTreached € 26.1 million (previous year: € 15.1 million). As of 31 March 2014, the group reportsearnings after taxes of € 18.0 million (previous year: € 10.4 million).
Investments in intangible assets and plant, property and equipment were € 20.4 million during the first three months (previous year's figure: € 10.6 million).
On 31 March 2014, the group had 6,937 employees of whom 205 were trainees (31 Dec. 2013: 6,722). The number of employees has thus risen by 215. At the end of the first quarter, there were 3,831 domestic employees (55%) and 3,106 employees (45%) working for the international companies. Personnel costs amounted to € 121.6 million (previous year’s period: € 114.3 million). The personnel expenses ratio was 23.0 % (previous year's period: 23.0%).
The share price of DMG MORI SEIKI AKTIENGESELLSCHAFT was quoted at the start of the year at € 23.02 (2 Jan. 2014) and closed at the end of the first quarter at € 22.24 (31 March 2014). The current share price is € 22.63 (30 April 2014).
Forecast
The global market for machine tools in 2014 is expected to develop positively. In their latest forecast, the German Machine Tool Builders‘ Association (VDW) and the British Economic Research Institute, Oxford Economics, are projecting growth in global consumption of 3.7 % to € 61.1 billion (as of April 2014). The growth rate was thus revised down slightly from the fall estimate by around 1.3 percent (October 2013: +5.0%).
In financial year 2014 , we currently still expect continued favourable economic conditions on the whole. In our European core markets, we expect a further stimulation of the market development, especially in the second half of the year. The forecast involves risks, however, above all due to the Ukraine conflict and the weaker economic outlook in China. As a result, an increasingly volatile economic environment could arise during the financial year 2014.
We intend to further expand our global market presence. The cooperation with our Japanese partner DMG MORI SEIKI COPMANY LIMITED is an important element of our strategy. Our motto for the current financial year therefore remains: One Brand for the World . In addition to opening up new markets, we will gradually strengthen our cooperation in the areas of product development and production in future.
For the current year we expect order intake of around € 2.3 billion. In the course of the year, the trade and technology fairs and especially the autumn trade fairs IMTS in Chicago, AMB in Stuttgart and JIMTOF in Tokyo should make important contributions to order intake.
On the basis of current business performance and our solid order backlog, annual sales revenues should amount to around € 2.2 billion. In 2014, we expect positive free cash flow to be between € 20 million and € 50 million. This will depend on the status of the implementation of our investment plans. Assuming that market trends follow our expectations, we plan further improvement of our EBIT yield. We plan EBIT of around € 175 million and EBT around € 165 million. Based on these figures, we intend to distribute a dividend for financial year 2014.
DMG MORI SEIKI AKTIENGESELLSCHAFT
The Executive Board
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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.