Quarterly figures DMG Mori with good performance: Order intakes at all-time high
In its quarterly release for Q3 2022, machine engineering company DMG Mori is reporting strong figures. In a difficult market environment order intake in the 3rd quarter was at 664.9 million euros only slightly below the record level of the previous year. As of 30 September 2022, the company achieved a new all-time high in order intake.
The global market for machine tools continued to be characterised 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, DMG Mori registered an order intake of 664.9 million euros during the third quarter, only slightly below the record level of the previous year (-2 percent; 679.9 million euros) and even +12 percent above the high pre-corona level 2019 (596.1 million euros).
As of 30 September 2022, DMG Mori achieved a new all-time high in order intake: orders increased by +21 percent to 2,340.1 million euros (previous year: 1,928.6 million euros). Demand for our holistic, sustainable automation and digitization solutions developed particularly well. Domestic orders rose to 722.5 million euros (+23 percent; previous year: 585.8 million euros). International orders grew to 1,617.6 million euros (+20 percent; previous year: 1,342.8 million euros). The share of international orders was 69 percent (previous year: 70 percent).
Material supply and on-time shipments major challenges
Sales revenues increased by +11 percent to 573.5 million euros in the 3rd quarter (previous year: 517.4 million euros) — 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 percent to 1,697.1 million euros (previous year: 1,450.9 million euros). 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 euros (+24 percent; previous year: 457.5 million euros). International sales were 1,129.4 million euros (+14 percent; previous year: 993.4 million euros). The export share was 67 percent (previous year: 68 percent).
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 percent (previous year: 26.3 percent).
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. 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.
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,” the company’s management announced. 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 inno-vative 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 euros (4 August 2022: around 2.7 billion euros). Sales revenues are to remain around 2.3 billion euros. Ebit will be unchanged at around 180 million euros. Free cash flow is still expected to be around 150 million euros. “2022 continues to be challenging. Our forecasts remain subject to the provision that the global market and overall conditions do not become more difficult,” the company states.