Published 10/27/2016

DMG MORI Increases Order Intake by 12% in Third Quarter

The company is experiencing initial success with its recent realignment, according to an announcement by its executive board.

In the third quarter 2016, DMG MORI AKTIENGESELLSCHAFT saw a positive development with € 601.4 million or +12% in its order intake (previous year: € 538.7 million). We have thus exceeded the order intake for the last four quarters. The successful autumn trade fairs also contributed to this. Sales revenues amounted to € 536.6 million (previous year: € 558.6 million). EBITDA was € 52.1 million (previous year: € 57.0 million), the EBIT reached € 38.7 million (previous year: € 43.1 million) and EBT amounted to € 37.8 million (previous year: € 43.1 million). The drop in earnings was mainly attributable to the measures already initiated for realignment. The group recorded earnings after taxes of € 26.1 million for the third quarter 2016 (previous year: € 29.8 million). As at 30 September, order intake was € 1,759.6 million and thereby slightly above the previous year (€ 1,742.0 million). Sales revenues amounted to € 1,629.1 million (previous year: € 1,648.8 million). EBITDA reached € 146.3 million (previous year: € 151.9 million), EBIT was € 104.0 million (previous year: € 111.5 million) and EBT € 99.0 million (previous year: € 108.8 million). As at 30 September 2016 the group recorded earnings after taxes of € 68.9 million (previous year: € 75.1 million).

Sales revenues in the third quarter amounted to € 536.6 million (previous year: € 558.6 million). For the first nine months, sales revenues were € 1,629.1 million (previous year: € 1,648.8 million). International sales revenues were € 1,100.0 million (previous year: € 1,098.7 million). Domestic sales revenues were € 529.1 million (previous year: € 550.1 million). The export quota amounted to 68% (previous year: 67%).

In the third quarter, order intake developed positively: At € 601.4 million or +12%, the company exceeded the figure for the last four quarters (previous year´s quarter: € 538.7 million). We achieved significant growth with our machine tools. This was due in part to our successful autumn trade fairs. As at 30 September order intake was at € 1,759.6 million slightly above the previous year (€ 1,742.0 million). Domestic orders amounted to € 578.2 million (previous year: € 600.5 million). International orders were € 1,181.4 million (previous year: € 1,141.5 million). The share of foreign business was 67% (previous year: 66%).

Key income figures of the DMG MORI group developed as follows in the third quarter: EBITDA was € 52.1 million (previous year: € 57.0 million), EBIT reached € 38.7 million (previous year: € 43.1 million) and EBT amounted to € 37.8 million (previous year: € 43.1 million). As at 30 September, EBITDA amounted to € 146.3 million (previous year: € 151.9 million), EBIT was € 104.0 million (previous year: € 111.5 million) and EBT was € 99.0 million (previous year: € 108.8 million). The group reported earnings after taxes of € 68.9 million, as at 30 September 2016 (previous year: € 75.1 million).

Expenses for research and development amounted to € 33.7 million (previous year: € 34.4 million). In the first nine months, we launched eight world premieres, including two in the third quarter. At the successful autumn trade fair, the AMB in Stuttgart, DMG MORI presented 29 exhibits. Digitisation is at the heart of our innovation strategy. Thereby we focus on our APP-based control and operating software, CELOS. We are also planning to expand our position in future-oriented technologies, such as DMG MORI Technology Cycles and Additive Manufacturing.

On 30 September 2016, the group had 7,375 employees of whom 318 were trainees (31 Dec. 2015: 7,462). There were 4,132 domestic employees (56%) and 3,243 employees (44%) working for the international companies. The personnel ratio was 25.8% (previous year’s period: 23.6%). Personnel costs amounted to € 428.3 million (previous year’s period: € 404.7 million).

The share price at the start of the third quarter was quoted at € 42.28 (1 July 2016) and closed at a price of € 43.34 at the end of the reporting period (30 September 2016).

Forecast
The global economy is still marked by uncertainties. We expect market conditions for machine tools to remain difficult. The global market for machine tools is expected to decrease in 2016. The German Machine Tool Builders´ Association (VDW) and the British economic research institute Oxford Economics now expect in their latest forecast (status: October 2016) a decline of global consumption by 1.7% to € 67.4 billion (forecast in April: +1.9%).

However, for the year as a whole, we are still expecting a slight improvement in order intake compared to last year. We are planning sales revenues of around € 2.25 billion. EBT shall amount to around € 95 million. The earnings trend is marked by one-time effects due to the realignment measures already initiated and planned. Regardless of business performance, the domination and profit transfer agreement ensures the payment of a “guaranteed dividend” of € 1.17. In addition, we are expecting a slight positive free cash flow.

The further growing together to form a globally integrated machine tool company enables us to consolidate our competitive position in global markets. As a ‘Global One Company’, we are focusing on our core business in the machine tool and service segments. As part of this strategy, we reorganise our global sales and service. We will specifically develop our product portfolio and optimise our production capacities. “Global One” stands for integration, innovation and quality.