- Order intake rises to € 1,928.6 million (+62%; previous year: € 1,187.8 million)
- Sales revenues increase to € 1,450.9 million (+11%; previous year: € 1,305.3 million)
- EBIT improves to € 83.7 million (+57%; previous year: € 53.4 million)
- EBIT margin of 5.8% above previous year (4.1%)
- Free cash flow reaches record level of € 149.0 million (+326%; previous year: € -65.8 million)
Bielefeld // DMG MORI AKTIENGESELLSCHAFT achieved high growth rates in the first nine months: Order intake rose by +62% to € 1,928.6 million (previous year: € 1,187.8 million). Sales revenues increased by +11% to € 1,450.9 million (previous year: € 1,305.3 million). The earnings and financial situation also continued to develop positively: EBIT rose to € 83.7 million (+57%; previous year: € 53.4 million). The EBIT margin improved to 5.8% (previous year: 4.1%). As at 30 September 2021 free cash flow reached a new record level of € 149.0 million (+326%; previous year: € -65.8 million).
Christian Thönes, Chairman of the Executive Board: "DMG MORI convinces with stable growth – and that with new challenges every day, such as material, logistics and delivery shortages. Our strategic fit of automation, digitization and sustainability is a complete success. This is also reflected in our key figures. The EBIT margin improved to 8.0% in the third quarter and free cash flow reached a record level as of September. We are therefore raising our forecasts for 2021 again."
Order intake // Demand in 3rd quarter above high pre-corona level 2019
The global market for machine tools continued to recover but was characterized by increasing material and supply shortages. DMG MORI achieved a significant increase in order intake by +68% in the third quarter 2021 (previous year: € 403.8 million). In particular, the new machine business grew notably by +84%. Overall, orders rose to € 679.9 million, even +14% above the high pre-corona level 2019 (€ 596.1 million).
As at 30 September 2021, order intake increased by +62% to € 1,928.6 million (previous year: € 1,187.8 million). Thus, the core business with machine tools and services in the first nine months was even above the high pre-crisis level of 2019 (+3%; € 1,875.7 million). Domestic orders increased by +70% to € 585.8 million (previous year: € 344.6 million). International orders were up by +59% to € 1,342.8 million (previous year: € 843.2 million). The share of international orders amounted to 70% (previous year: 71%).
Sales revenues // Material supply as a major challenge
Sales revenues increased to € 517.4 million in the third quarter (+11%; previous year: € 467.3 million). With continued high raw material prices, transport costs and a more difficult material supply, sales revenues in the first nine months reached € 1,450.9 million (+11%; previous year: € 1,305.3 million). The export ratio was 68% (previous year: 69%). The pressure on supply chains remains high worldwide and additionally intensified by logistics shortages. DMG MORI has so far been able to avoid severe production interruptions thanks to a stable and good network to partners and suppliers. DMG MORI recently honored five particularly outstanding partnerships with the "Partner Award 2021".
Order backlog // Focused measures for more efficiency and productivity
On 30 September 2021, the order backlog amounted to € 1,256.1 million (31 Dec. 2020: € 852.2 million) – a calculated production capacity of an average of seven months. We are countering the resulting longer delivery times with focused measures such as the expansion and optimization of assembly and production capacities.
Results of Operations, Financial Position, Net Worth // EBIT margin and free cash flow improved
The earnings situation recorded high growth rates: In the third quarter, EBITDA rose to € 57.5 million (+50%; previous year: € 38.4 million). EBIT doubled to € 41.5 million (+105%; previous year: € 20.2 million). The EBIT margin improved significantly to 8.0% (previous year: 4.3%). EBT amounted to € 41.2 million (+99%; previous year: € 20.7 million). EAT was € 29.0 million (+103%; previous year: € 14.3 million).
As at 30 September 2021, EBITDA reached € 131.7 million (+24%; previous year: € 106.4 million). EBIT increased to € 83.7 million (+57%; previous year: € 53.4 million). The EBIT margin reached 5.8% (previous year: 4.1%). EBT was € 81.8 million (+55%; previous year: € 52.9 million). As at 30 September 2020 the group reported EAT of € 57.3 million (+56%; previous year: € 36.7 million).
The financial situation also continued to develop pleasantly: free cash flow increased by +158% to € 35.8 million in the third quarter (previous year: € 13.9 million). As at 30 September 2021, free cash flow reached a new record level of € 149.0 million (+326%; previous year: € -65.8 million).
Employees // Stable growth with stable workforce
On 30 September 2021, the group had 6,718 employees, including 217 trainees (31 Dec. 2020: 6,672). Personnel expenses amounted to € 392.1 million (previous year: € 373.3 million). The personnel quota improved to 26.3% (previous year: 28.3%).
Research and Development // Sustainability belongs to DMG MORI's DNA
In the financial year 2021 we present 42 innovations together with DMG MORI COMPANY LIMITED – including 10 world premieres, 3 automation solutions, 23 digital innovations and 6 new DMG MORI Components. At the "Global Development Summit" in October, around 300 international experts came together digitally to develop and push forward future ideas for networked solutions of machine, automation, digitization and sustainability.
In the run-up to EMO in Milan, DMG MORI presented a total of 25 completely climate-neutral high-tech machines at a pre-EMO show at DECKEL MAHO Pfronten – live on site and also digitally. The focus was on automation with more than 10 holistic solutions for workpiece and pallet handling with cell controller technology as well as the driverless transport system TH-AGV for autonomous tool transport between machines and the central tool magazine. A highlight in the field of digitization was the new subscription business model PAYZR. With “PAY with Zero Risk”, customers benefit from fast innovation cycles without risk – with maximum flexibility, cost and price transparency and thus maximum planning reliability. The PAYZR offer is continuously being expanded, as most recently with the CLX 450 TC turn-mill machining center for Equipment-as-a-Service or with up2parts for Software-as-a-Service.
Sustainability with a holistic approach belongs to DMG MORI's DNA. Both our "Company Carbon Footprint" and "Product Carbon Footprint" are already climate-neutral today. From raw material to delivery, all machines delivered worldwide are climate neutral – including the new, modular and flexible production lathe NZ QUATTRO. This is unique in the industry. Out of more than 1,000 applicants, DMG MORI is one of the TOP 17 companies nominated in the area of climate protection for Europe's largest sustainability award. Since September, DMG MORI has also been a certified member of the "Science Based Targets" initiative, whose goal is to limit global warming to a maximum of 1.5°C.
Forecast 2021 // Forecasts for the financial year 2021 raised again
The overall economy and the global market for machine tools are on the road to recovery. According to the October forecast of the VDW and British economic research institute Oxford Economics, the global machine tool consumption is expected to increase by +14.1% to € 67.1 billion in 2021. This development is increasingly being influenced by rising raw material prices, material and delivery shortages.
DMG MORI is well positioned and continues to align itself future-proof. We came out of the crisis well and are more innovative, digital and resilient than ever. Holistic sustainability in machine tool manufacturing from raw material to delivery as well as a unique future architecture for networked solutions of machine, automation, digitization and sustainability – with this, DMG MORI is setting new standards. We are expanding our global presence with new production plants in China and Egypt.
Due to the good business development in the first nine months, DMG MORI is once again increasing its forecasts: For the full year 2021, we are now planning order intake of around € 2.5 billion (previously: around € 2.25 billion). Sales revenues are now expected to be around € 2.0 billion (previously: around € 1.95 billion). We currently estimate EBIT of around € 120 million (previously: around € 100 million). Free cash flow is expected to be around € 150 million (previously: around € 140 million).
DMG MORI AKTIENGESELLSCHAFT
The Executive Board