DMG MORI sets course for the future
Bielefeld. DMG MORI held up well in financial year 2016 despite a difficult market environment: Order intake of € 2,369.9 million reached a new record high (previous year: € 2,282.8 million). Although the worldwide market for machine tools was in decline at -1.7%, DMG MORI rose order intake by 4%. By the concentration on the core business with machine tools and services, DMG MORI set the course for the future. This includes measures for a new sales and service structure worldwide, optimising production capacity and sale of companies that do not form part of the core business operations.
All figures are provisional; they are subject to audit and the approval of the financial statements by the Supervisory Board.
Order intake grew increasingly positive over the course of the year: After orders in the third quarter had already surpassed the level reached in the previous four quarters by 12%, order intake rose in the fourth quarter of 2016 to € 610.3 million – an increase of 13% (previous year’s quarter: € 540.8 million). Over the whole year order intake increased by 4% to € 2,369.9 million (previous year: € 2,282.8 million). In the reporting year DMG MORI thus achieved the highest order intake so far in the 146 years of company history.
Sales revenues of € 2,265.7 million were slightly below the previous year (€ 2,304.7 million). In the fourth quarter sales revenues reached € 636.6 million (previous year: € 655.9 million). The export share remained as in the previous year at 67%.
The results of operations in financial year 2016 developed as follows: EBITDA amounted to € 169.7 million (previous year: € 243.1 million), EBIT reached € 103.9 million (previous year: € 185.9 million) and EBT was € 94.1 million. The previous year’s figure of € 217.3 million includes the one-off revenue item (€ 37.8 million) from the sale of shares in DMG MORI COMPANY LIMITED. The development of earnings 2016 was essentially marked by the effects amounting to about € 75 million for the measures of implementing the realignment.
In the fourth quarter EBITDA reached € 23.4 million (previous year: € 91.2 million), EBIT was € -0.1 million (previous year: € 74.4 million) and EBT amounted to € -4.9 million (previous year: € 108.5 million). The results were significantly influenced by the one-off effects primarily occurred in the fourth quarter.
Forecast 2017
The current forecast for machine tools assumes moderate growth in 2017 despite considerable uncertainties. The VDW (German Machine Tool Builders' Association) and the British economic research institute, Oxford Economics, currently expect consumption worldwide to grow by 2.1%.
DMG MORI is expecting a difficult international market environment in the current financial year. To be positioned optimally for the individual markets and the associated challenges, the worldwide sales and service structure has been realigned. Since January, DMG MORI AKTIENGESELLSCHAFT has been managing the home market Germany, the EMEA region (Europe, Middle East, Africa) and the Indian and Chinese markets. DMG MORI COMPANY LIMITED is responsible for its home market Japan, the USA and the remaining regions in Asia and the Americas. This new structure ensures fast decisions to suit the specific markets; it improves efficiency not only for DMG MORI but more especially for our customers.
As “Global One Company“, DMG MORI is strengthening its competitive standing on the world markets. Together we are focusing on our core business of machine tools and services. “Global One” stands for integration, innovation and quality.
We have started the new financial year well and as expected as regards order intake. We expect particular stimulus to come in February from our traditional
Open House in Pfronten – the industry highlight at the start of the year. Further details of business development in 2017 will be announced at the balance sheet press conference on 9 March 2017.
DMG MORI 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 “DMG MORI”, this refers exclusively to the DMG MORI AKTIENGESELLSCHAFT and its group companies.