DMG MORI increases sales revenues, results and free cash flow

DMG MORI increases sales revenues, results and free cash flow

• Order intake reaches € 708.3 million as planned (-14%; previous year’s quarter: € 821.8 million)
• Sales revenues increase by +8% to € 629.2 million (previous year’s quarter: € 581.8 million)
• EBIT goes up significantly by +23% to € 50.4 million (previous year’s quarter: € 41.0 million)
• EBIT margin improves to 8.0% (+1%; previous year’s quarter: 7.0%)
• Free cash flow of € 31.5 million is clearly above the previous year’s quarter (+142%; € 13.0 million)

Bielefeld // DMG MORI AKTIENGESELLSCHAFT has started the financial year 2019 as planned. Order intake of € 708.3 million was stable at the high level of the two last quarter in 2018. Sales revenues rose by +8% to € 629.2 million. EBIT again made strong gains of +23% to € 50.4 million. The EBIT margin improved to 8.0%. The free cash flow of € 31.5 million could also be improved significantly once again.

Christian Thönes, Chairman of the Executive Board: «We are continuing to give full power –especially in our future fields of Automation, Digitization and ADDITIVE MANUFACTURING. Despite weakening economic dynamics, we are confirming our forecasts for the financial year 2019. To achieve maximum quality and stability as well as 100% satisfaction of our customers, partners and employees, we are actively advancing the implementation of our motto «Dynamic . Excellence.»

Order Intake 

DMG MORI has started the financial year 2019 as planned. Order intake in the first quarter was stable at the high level of the two last quarters in 2018. As expected, with € 708.3 million it was below the record level of the previous year (-14%; € 821.8 million) which was marked by various
major projects. Domestic orders amounted to € 229.0 million (previous year: € 251.7 million). International orders reached € 479.3 million (previous year: € 570.1 million). International orders accounted for 68% of orders (previous year: 69%).

Sales Revenues

Sales revenues rose to € 629.2 million and were +8% above the previous year (€ 581.8 million). Hence the good development of the previous quarters is continuing. The export ratio amounted to 68% (previous year: 69%).

 

Order Backlog 

 On   31 March   2019  the   order   backlog   amounted   to   € 1,688.8  million   (31   Dec.   2018:€ 1,609.9 million). The calculated production capacity of an average of seven months forms a good basis for the current financial year. Targeted measures to increase efficiency and productivity are in place to convert the order backlog into sales revenues and to shorten delivery times.

 

Results of Operations, Financial Position and Net Worth 

 We  achieved  record  figures  in  earnings  in  the  first  three  months:  EBITDA  amounted  to € 73.3  million  (+34%;  previous  year:  € 54.6  million).  EBIT  rose  significantly  by  +23%  to € 50.4 million (previous year: € 41.0 million). The EBIT margin improved to 8.0% (+1%; previous year: 7.0%). EBT rose by +22% to € 49.2 million (previous year: € 40.3 million). As at 31 March 2019 the group reports EAT of € 34.7 million (+23%; previous year: € 28.3 million. In line with our motto «Dynamic . Excellence», we thus further enhanced the quality of earnings. The free cash flow of € 31.5 million is also significantly above the previous year’s quarter (+142%; € 13.0 million).

 

Employees 

 On 31 March 2019, the group had 7,489 employees, thereof 346 trainees (31 Dec. 2018: 7,503). At the end of the first quarter, 4,512 employees (60%) worked for our domestic companies and 2,977 employees (40%) for our international companies. The personnel expenses ratio amounted to 22.4% (previous year: 23.2%). The personnel costs totalled 155.0 million (previous year: 144.7 million).

 

Research & Development 

 Expenses for research and development in the first quarter amounted to € 13.9 million (previous year: € 13.8 million). With dynamic and excellence we are advancing our future fields of Automation, Digitization and ADDITIVE MANUFACTURING. At the Open House exhibition in Pfronten at the start of the year, on an area of more than 7,500 m2, we presented our entire technological expertise: 70 high-tech machines, two world premieres, 20 automation solutions as well as the integrated digitization of the entire process chain from the planning and preparatory work to production and monitoring to service.

 

Forecast 2019

The worldwide machine tool market is expected to grow by only +2.3% according to the latest April forecast from German Machine Tool Builders’ Association (VDW) and the British Economic Research Institute Oxford Economics (October forecast: +3.6%). Thus, the general trend of an overall economic decline has also reached the machine tool industry.

Nevertheless, DMG MORI confirms its forecasts for the full year 2019: We are planning order intake of around € 2.6 billion and sales revenues of around € 2.65 billion. EBIT is expected to amount to around 200 million and the free cash flow to be around 150 million.

The current financial year is marked by the EMO the biggest machine tool trade fair worldwide. From 16 to 21 September we will be the largest exhibitor in Hanover, displaying a variety of innovations and new technology, automation and digitization solutions over an area of 10,000 m2. As «Global One Company» we are dynamically advancing our future fields. We are optimizing our excellence in existing and established areas.

 

DMG MORI AKTIENGESELLSCHAFT

The Executive Board