Forecast Confirmed DMG Mori reports record figures in first quarter 2022

Source: Press release

Germany — The global market for machine tools was impacted in the 1st quarter 2022 by the Ukraine war, global supply shortages as well as rising inflation. However, DMG Mori made a strong start to the current financial year: order intake rose to a new record of 861.6 million euros (+46 percent; previous year: 589.8 million euros).

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Chairman of the Executive Board Christian Thönes: “We had an excellent start to the year and even achieved new record figures for order intake, Ebit, Ebit margin and free cash flow in the 1st quarter.”
Chairman of the Executive Board Christian Thönes: “We had an excellent start to the year and even achieved new record figures for order intake, Ebit, Ebit margin and free cash flow in the 1st quarter.”
(Source: DMG Mori)

Machine manufacturer DMG Mori announced a strong start to the current financial year: order intake rose to a new record of 861.6 million euros (+46 percent; previous year: 589.8 million euros). The new machines business in particular contributed to this with an increase of 50 percent. Domestic orders grew by +40 percent to 243.6 million euros (previous year: 174.6 million euros). International orders went up by +49 percent to 618.0 million euros (previous year: 415.2 million euros). The share of international orders was 72 percent (previous year: 70 percent).

Chairman of the Executive Board Christian Thönes: “We had an excellent start to the year and even achieved new record figures for order intake, Ebit, Ebit margin and free cash flow in the 1st quarter. The current financial year again presents us with major challenges. The war in Ukraine, the lockdown in parts of China, global supply and material shortages, high raw material and energy costs are affecting the entire industry. DMG Mori nevertheless confirms the forecasts for 2022.”

High utilization of capacities at production plants

Sales revenues rose by +33 percent to 561.0 million euros (previous year: 421.6 million euros) despite continuing difficulties in the supply of materials and high logistics shortages. As in the previous year, the export ratio was 68 percent. Pressure on global supply chains intensified further in the 1st quarter 2022. Thanks to a stable, long-standing network of partners and suppliers, DMG Mori was able to secure the material supply in the production plants. “We counter longer delivery times with targeted measures, such as the expansion and optimization of assembly, logistics and production capacities”, Thönes said.

Ebit, Ebit margin and free cash flow at all-time high levels

The results of operations also developed very successfully despite more difficult market and general conditions. The consistent and sustainable optimization of our cost structure is paying off: Ebitda increased by +164 percent to 73.0 million euros (previous year: 27.7 million euros). Ebit rose by +374 percent to the record level of 55.9 million euros (previous year: 11.8 million euros). The Ebit margin reached an all-time high at 10.0 percent (previous year: 2.8 percent). As of 31 March 2022, the group reports EAT of 39.6 million euros — a plus of 394 percent compared to the previous year (8.0 million euros).

The financial position also developed very positively: free cash flow grew by +40 percent to 55.4 million euros, thus reaching a new high in the 1st quarter (previous year: 39.6 million euros).

Employees: Team further strengthened

On 31 March 2022, the group had 6,715 employees, including 164 trainees (31.12.2021: 6,821). Personnel expenses amounted to 143.4 million euros (previous year: 126.6 million euros). The personnel ratio improved to 25.2 percent (previous year: 29.1 percent). As a “Leading Employer 2022”, DMG Mori is among the TOP 1 percent of a total of 160,000 evaluated companies in Germany.

Technology leadership and sustainability

Expenditure on research and development remained stable at a high level of 18.3 million euros (previous year: 16.3 million euros). In 2022, we will present 36 innovations together with DMG Mori Company Limited — thereof five world premieres, seven automation solutions, 19 digital innovations including ten technology cycles and five DMG Mori Components.

The traditional Open House in Pfronten will take place for the first time for two weeks from 9-21 May 2022 — live and digitally. The company expects over 5,000 participants at this industry highlight to get informed about its latest technological developments.

“Technology leadership and sustainability are in harmony at DMG Mori”, the company states. The internationally renowned institute Eco Vadis has awarded DMG Mori the Platinum Medal in the Sustainability Rating. “This means that we are among the TOP 1 percent of over 35,000 companies rated worldwide. The use of holistic automation and end-to-end digitization solutions makes our machines even more efficient and thus even more sustainable.”

Forecasts for the full year confirmed

The group expects 2022 to remain challenging — particularly due to the war in Ukraine of which the duration, extent and global economic impact can hardly be estimated. Already at the end of February, DMG Mori immediately stopped all sales and service activities in Russia as well as production in Ulyanovsk. This also included all deliveries of machines, spare parts, components and services to Russia. In addition, the global economy is being impacted by the ongoing corona pandemic, rising inflation, more difficult material supplies as well as high raw material, transportation and energy costs.

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“Nevertheless, the 1st quarter of 2022 has once again shown: DMG Mori is a stable and reliable partner even under difficult external conditions. We therefore confirm our forecasts for the full year: We plan order intake of around 2.5 billion euros. Sales revenues are estimated to be around € 2.3 billion. We expect Ebit of around 180 million euros. Free cash flow is to be around € 130 million. Our forecasts are subject to the condition that the global market and general conditions do not change significantly due to the war in Ukraine and the lockdown in parts of China,” the group announced.

DMG Mori wants to keep up the pace — both operationally and strategically — in particular with the expansion of its digital subscription business model Payzr for Software-as-a-Service and Equipment-as-a-Service and with new production plants. The opening of the highly automated and fully digitized production plant DMG Mori Manufacturing Solutions in Pinghu near Shanghai is planned for 2023.

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