DMG MORI with good performance
- Order intake increases by +21% to an all-time high of € 2,340.1 million (previous year: € 1,928.6 million)
- Sales revenues grow to € 1,697.1 million (+17%; previous year: € 1,450.9 million)
- EBIT improves by +92% to € 160.3 million (previous year: € 83.7 million)
- EBIT margin rises to 9.4% (previous year: 5.8%)
- Free cash flow at all-time high of € 152.0 million (+2%; previous year: € 149.0 million)
Chairman of the Executive Board Christian Thönes: “In an environment of major global challenges, DMG MORI once again achieves a good performance. With our strategic fit of automation, digitization and sustainability we have a strong position. Our customers benefit from high-quality, cost- and energy-efficient manufacturing technologies with high process integration. We will achieve our ambitious targets for 2022. We are even raising our forecast for order intake again.”
Order intake // High demand continues
The global market for machine tools continued to be characterized by numerous exogenous challenges. In particular, the decreasing availability of gas, high inflation rates, rising interest rates and increasing costs for raw materials, transport, logistics as well as energy impacted demand. In this difficult market environment order intake in the 3rd quarter was nevertheless at € 664.9 million only slightly below the record level of the previous year (-2%; € 679.9 million) and even +12% above the high pre-corona level 2019 (€ 596.1 million).
As of 30 September 2022, DMG MORI achieved a new all-time high in order intake: orders increased by +21% to € 2,340.1 million (previous year: € 1,928.6 million). Demand for our holistic, sustainable automation and digitization solutions developed particularly well. Domestic orders rose to € 722.5 million (+23%; previous year: € 585.8 million). International orders grew to € 1,617.6 million (+20%; previous year: € 1,342.8 million). The share of international orders was 69% (previous year: 70%).
Sales revenues // Material supply and on-time shipments major challenges
Sales revenues increased by +11% to € 573.5 million in the 3rd quarter (previous year: € 517.4 million) – despite the continued difficult materials and logistics situation, in particular due to the global delay in shipments. As of 30 September 2022, sales revenues grew by +17% to € 1,697.1 million (previous year: € 1,450.9 million). DMG MORI has so far been able to avoid production interruptions due to material shortages through consistent supplier and supply chain management. Domestic sales amounted to € 567.7 million (+24%; previous year: € 457.5 million). International sales were € 1,129.4 million (+14%; previous year: € 993.4 million). The export share was 67% (previous year: 68%).
Order backlog // Good production utilization for financial year 2023
As of 30 September 2022, the order backlog increased to € 1,744.6 million due to the good
development of order intake (31 Dec. 2021: € 1,208.9 million). This forms a good basis for 2023. The launch of our new logistics center in Pfronten is also one of several targeted measures to optimize our delivery times. The fully automated, digitized supply chain accelerates the material delivery from the warehouse to the assembly area from previously 6 hours to now under 60 minutes.
Results of operations, financial position and net worth // Strong earnings with record highs
The results of operations further developed positively. We were able to strengthen our resilience even more through sustainable cost optimization and at the same time keep the high level of research and development stable. EBITDA increased to € 75.9 million in the 3rd quarter (previous year: € 57.5 million). EBIT grew by +41% to € 58.6 million (previous year: € 41.5 million). The EBIT margin improved to 10.2% (previous year: 8.0%). EBT amounted to € 56.9 million (previous year: +38%; € 41.2 million). EAT rose by +38% to € 40.1 million (previous year: € 29.0 million).
As of 30 September 2022, EBITDA increased to € 216.3 million (previous year: € 131.7 million). EBIT grew by +92% to € 160.3 million (previous year: € 83.7 million). The EBIT margin rose to an all-time high of 9.4% (previous year: 5.8%). EBT almost doubled to € 158.7 million (previous year: +94%; € 81.8 million). The group reports EAT of € 111.9 million as of 30 September 2022 (previous year: € 57.3 million).
The financial situation was also satisfying: free cash flow amounted to € 25.7 million in the
3rd quarter (previous year: € 35.8 million). As of 30 September, free cash flow reached a new high of € 152.0 million (previous year: € 149.0 million).
Employees // Focus: continuity and stability
On 30 September 2022, the group had 6,725 employees, including 226 trainees (31 Dec. 2021: 6,821, including 225 trainees). Personnel expenses amounted to € 425.4 million (previous year: € 392.1 million). The personnel ratio improved to 24.2% (previous year: 26.3%).
Research and development // More sustainability through automation and digitization
Automation, digitization and sustainable technology integration – at AMB 2022, DMG MORI presented 22 machines, more than half of them equipped with innovative automation (workpiece or pallet handling). Automation and sustainability are currently the future topics of the machine tool industry. DMG MORI has consistently aligned its entire product portfolio to this. From modular, standardized products to fully integrated turnkey projects – we equip our customers with highly efficient, automated and sustainable manufacturing solutions. Trade fair highlights were, for example, the compact, modular PH Cell Twin for the automation of two machines or digital solutions, such as DMG MORI technology cycles for conserving resources by integrating milling, turning, gear cutting and grinding on just one machine.
Forecast 2022 // Outlook for order intake raised once again
The geopolitical situation remains challenging. High inflation rates, rising interest rates and increasing costs for raw materials, transport, logistics as well as the energy crisis with the decreasing availability of gas, the ongoing corona pandemic and the war in Ukraine will continue to shape the global economy and machine tool demand.
DMG MORI has a high degree of resilience and the strength to deal quickly and agilely with globally changing conditions. This will be essential in the future. With the consistent implementation of our strategic triad of automation, digitization and sustainability, DMG MORI is positioned stable and strong for the future, especially in times of high volatility and uncertainty.
In view of the right strategic fit and dynamic business development in the first nine months,
DMG MORI is confident of further expanding its market position in a persistently difficult economic environment. Our strong long-standing network to customers, partners and suppliers, the innovative product portfolio as well as our highly qualified employees are the backbone of our success.
DMG MORI is therefore detailing its forecasts for 2022: We are once again raising order intake to around € 2.9 billion (4 August 2022: around € 2.7 billion). Sales revenues are to remain around € 2.3 billion. EBIT will be unchanged at around € 180 million. Free cash flow is still expected to be around € 150 million. 2022 continues to be challenging. Our forecasts remain subject to the provision that the global market and overall conditions do not become more difficult.
DMG MORI AKTIENGESELLSCHAFT
Disclaimer, Forward-looking statement
Company Profile // DMG MORI
DMG MORI AKTIENGESELLSCHAFT is a worldwide leading manufacturer of machine tools with sales revenues of over € 2.0 billion and more than 6,800 employees. In the “Global One Company”, around 12,000 employees are in direct contact with over 100,000 customers from 55 industries. DMG MORI is present in 87 countries worldwide – with 16 production plants, 111 sales and service locations – and is actively advancing the future fields of automation, digitization and sustainability.
High-precision machine tools and technologies from DMG MORI are at the beginning of global value chains. Integrated automation and end-to-end digitization solutions extend our core business with turning and milling machines, Advanced Technologies and Additive Manufacturing. With modular products, we enable an easy, fast, scalable entry into digital manufacturing as well as end-to-end digitization. With PAYZR – PAY with Zero Risk – for Equipment-as-a-Service and Software-as-a-Service, DMG MORI is also implementing a completely digital subscription business model. Customers benefit from fast innovation cycles without risk – with maximum planning security, cost and price transparency and full flexibility. Our mission: Empower our customers in manufacturing and digitization!
Our technology excellence is bundled within the main sectors of Aerospace, Automotive, Die & Mold as well as Medical and Semiconductor. With the DMG MORI Qualified Products (DMQP) partner program, we offer perfectly matched peripheral products from a single source. Our customer-oriented services cover the entire life cycle of a machine tool – including training, repair, maintenance and spare parts service. With our online customer portal my DMG MORI, we enable digital, direct access to our service experts and digitize all service processes.
Sustainability at DMG MORI is globally and holistically oriented. Both our “Company Carbon Footprint” and “Product Carbon Footprint” are climate-neutral already today – and that along the entire supply up to the customer. Our vision: Be the most attractive global machine tool manufacturer with digitized and sustainable products!
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 the management's current expectations and specific assumptions. They are subject to risks, uncertainties and other factors, as well as to the effects of the corona crisis, 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 (indirectly) controlled by 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.