Company Results Hermle reports positive figures for the first half of the year
Germany — Machine engineering company Hermle, based in Gosheim, Germany, is reporting a significant upturn in business for the first half of 2021. These are some of the details.
According to the company, the order situation at the machine manufacturer Hermle has improved since the second quarter of 2021, after the beginning of the year still left room for improvement. According to the Gosheim-based company, incoming orders have increased by more than 51 percent, which in absolute terms means a volume of almost 180.5 million euros — around 61 million more than in the same period last year. Orders from abroad increased by almost 53 percent (around 115 million euros) compared to 2020, which is almost 5 percent above the increase from the domestic market (just over 48 percent and 65.3 million euros), the company adds.
Balancing impulses from the Industry 4.0 segment
Demand, which initially picked up in sectors unaffected by the pandemic effects, such as medical technology, packaging and electronics, recently also recovered in the parts of the automotive sector not affected by the automotive turnaround, as well as in mechanical engineering overall, Hermle staes. Demand is particularly high in the field of Industry 4.0, for which Hermle offers a complete range from automated individual machines to fully integrated automation options. Against the backdrop of growing demand from the Industry 4.0 environment, one of Hermle's R&D focuses is on the development of new automation and digitalisation modules for networked manufacturing systems. In the reporting period, for example, the compact RS 1 robot system was presented, which is suitable for automating six different Hermle machine models.
As of the reporting date (30 June 2021), the Hermle Group was looking at an order backlog of 85.9 million euros, according to the statement. This corresponded to an increase of 91.7 percent compared to the previous year's figure of 44.8 million on 31 December 2020, as well as 48.6 percent compared to the level on the previous year's reporting date.
However, the Hermle Group's turnover in the first six months was still 13.4 percent below the corresponding figure for 2020. This shortfall can be explained by the course of the year to date, in which turnover was successively reduced by the Corona pandemic and the low order backlog from the previous year due to the automotive turnaround. However, the volume of business in the service and training sector already exceeded the previous year. And Hermle also expects a further recovery in the area of new machines.
On a solid financial basis
The financial and asset situation of the Hermle Group remained very stable in the first half of 2021 and the equity ratio was a solid 75.3 percent. Although the operating cash flow decreased by almost 30 percent (previous year 26.6 million euros) as a result of the lower net profit for the half year, liquid assets increased by 12.5 million euros as of the reporting date, notes Hermle.
Hermle was able to keep the workforce largely stable during the Corona pandemic as planned. On the reporting date of 30 June 2021, 1,300 people were employed across the Group, compared to 1,304 at the end of 2020 and on the previous year's reporting date. Short-time working has already been significantly reduced in some areas in the course of the year to date, particularly in service and at the subsidiary HLS Hermle Systemtechnik, which specialises in automation solutions. The number of trainees increased year-on-year from 94 to 96 young people.