DMG MORI SEIKI with solid start into 2015
- Order intake amounted to € 587.2 million (previous year: € 601.2 million)
- Sales revenues rose by 7% to € 538.4 million (previous year: € 505.1 million)
- EBT reached € 27.9 million (+7%; previous year: € 26.1 million)
- Earnings after taxes increased to € 19.5 million (+8%; previous year: € 18.0 million)
Bielefeld. The start into the year took the following course for DMG MORI SEIKI AKTIENGESELLSCHAFT: Order intake in the first quarter reached € 587.2 million and was therefore 2% below the previous year's period (€ 601.2 million). Sales revenues rose by 7% to € 538.4 million (previous year: € 505.1 million). EBITDA amounted to € 42.4 million (previous year: € 39.5 million), EBIT reached € 30.0 million (previous year: € 28.4 million), and EBT were at € 27.9 million (previous year: € 26.1 million). As at 31 March 2015, the group reported earnings after taxes of € 19.5 million (previous year: € 18.0 million). For the second quarter, we expect a positive business development. We expect important impulses for the order intake, especially from the Asia trade fairs.
Sales revenues in the first quarter were € 538.4 million and thus exceeded the previous year’s figure by € 33.3 million (+7%; € 505.1 million). Domestic group sales revenues rose by 9% to € 184.7 million and international group sales increased by 5% to € 353.7 million. The export share was 66% (previous year: 67%).
In the first quarter, order intake amounted to € 587.2 million and was thereby 2% below the previous year (€ 601.2 million). This decline is essentially based on postponed investment decisions. For the second quarter, we plan with an order intake above the level of the previous year. We expect important impulses from the trade fairs in Asia. Domestic orders amounted to € 207.7 million (previous year: € 222.7 million). International orders amounted to € 379.5 million (previous year: € 378.5 million). Thus the share of foreign business in the first quarter of the financial year rose to 65% (previous year: 63%).
On 31 March 2015, order backlog within the group was € 1,183.1 million (31 Dec. 2014: € 1,134.3 million).
The DMG MORI SEIKI group was able to improve its key income figures as of 31 March 2015 compared to the previous year: EBITDA amounted to € 42.4 million (previous year: € 39.5 million), EBIT was € 30.0 million (previous year: € 28.4 million) and EBT reached € 27.9 million (previous year: € 26.1 million). As of 31 March 2015, the group reports earnings after taxes of € 19.5 million (previous year: € 18.0 million).
Investments in plant, property and equipment as well as intangible assets amounted to € 25.4 million in the first three months (previous year's value: € 20.4 million).
On 31 March 2015, the group had 7,236 employees of whom 261 were trainees (31 Dec. 2014: 7,166). The number of employees thus rose by 70. At the end of the first quarter, there were 3,966 domestic employees (55%) and 3,270 employees (45%) working for the international companies. Personnel costs amounted to € 135.8 million (previous year: € 121.6 million). With 23.1% the personnel quota remained constant compared to the previous year (23.0%).
The share price of DMG MORI SEIKI AKTIENGESELLSCHAFT at the start of the year was quoted at € 23.63 (02 Jan. 2015). With the announcement of the voluntary public tender offer from DMG MORI SEIKI COMPANY LIMITED on 21 January 2015 and an offer price of € 27.50, the share noted a jump in the stock price on the next day to reach € 28.82 (+12.6%). Subsequently, the share performance was influenced by the two increases in the offer price: the offer price was raised to € 30.00 on 3 March 2015 and on 9 March to € 30.55. The share followed immediately the offer prices and rose slightly above the current offer price in the further course. The share price performance was mainly influenced by the participation of international financial investors as a result of the tender offer. At the end of the first quarter, the share closed at a price of € 30.60 (31 March 2015). The share currently lists € 31.25 (24 April 2015).
The acceptance period for the tender offer of DMG MORI SEIKI COMPANY LIMITED ended on 13 April 2015. Subsequently the bidder announced on 16 April 2015 pursuant to section 23 (1) sentence 1 no. 3 of the German Securities Acquisition and Takeover Act (Wertpapiererwerbs- und Übernahmegesetz, WpÜG) that the tender offer has been accepted at the expiry date (Notification Reference Date) for a total of 9,377,464 DMG MORI SEIKI AG-shares. This corresponds to 11.90% of the total share capital and the voting rights in DMG MORI SEIKI AKTIENGESELLSCHAFT. As of the Notification Reference Date, the total number of shares held by the bidder and companies acting in concert with the bidder – plus the tendered shares – amounts to 41,408,563. This corresponds to 52.54% of the total share capital and the voting rights in DMG MORI SEIKI AKTIENGESELLSCHAFT.
The worldwide market for machine tools is expected to develop on the level of the previous year in 2015. The German Machine Tool Builders' Association (VDW) and the British economic research institute Oxford Economics expect in their most recent forecast (status: April 2015) a growth in global consumption by 3.3% to € 62.3 billion. The growth rate was thereby revised down by 4.0 percentage points compared to the autumn forecast. With regard to the given macro economic uncertainties, we’ve considered a growth rate of +7.3% for 2015 as too high previously.
We assume that the development of individual markets will continue to differ strongly from each other and that the competitive pressure will rise overall. In order to be able to compensate the regional market fluctuations even better in the future, we will further expand our international market presence together with DMG MORI SEIKI COMPANY LIMITED. Besides growth markets such as South Korea, where we are planning to build a new technology centre, we believe the future sales markets to be particularly the countries in Asia. Europe continues to remain a key market for us. Here, we will increasingly focus on a stronger market penetration also of smaller markets.
We confirm our forecast for the financial year 2015. We are expecting an order intake of around € 2.4 billion. Based on our solid order backlog, we are planning with sales revenuesof around € 2.25 billion. On the assumption that the market development will take place according to our expectations, we are planning to achieve an EBIT of around € 165 million and an EBT of around € 160 million. Based on these figures, we intend to distribute a dividend for the financial year 2015.
DMG MORI SEIKI AKTIENGESELLSCHAFT
The Executive Board
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.