Machining Equipment Trumpf announces record growth in order intake
Germany — High-tech company Trumpf presented its figures for the fiscal year 2020/21: Despite coronavirus restrictions, sales revenue increased slightly by 0.5 percent to 3.5 billion euros and order intake rose to a record level.
At the end of the fiscal year 2020/21 on June 30, 2021, the Trumpf Group recorded a slight increase in sales revenues of 0.5 percent to 3.50 billion euros (fiscal year 2019/20: 3.48 billion euros). Order intake value increased significantly by 19.7 percent to a record level for the company at 3.9 billion euros (fiscal year 2019/20: 3.3 billion euros).
At 370 million euros, the Group's operating earnings before interest and tax (Ebit) grew very positively by 19.5 percent compared to the fiscal year 2019/20 (309 million euros). Despite the low level of sales revenues in the first half of the year, the company was able to stabilise earnings by increasing productivity, changing the product mix and consistently cutting non-personnel costs. In the second half of the year, earnings increased significantly as a result of higher sales revenues. Also due to investment restraint, the company achieved an Ebit margin of 10.5 percent (previous year: 8.9 percent).
Nicola Leibinger-Kammüller, President of the Group Management Board of Trumpf: “Due to a strong rise in demand, we entered the new fiscal year with an unexpectedly high order intake. Nevertheless, there will still be a lot of uncertainty over the coming months with regard to how chip shortages in global supply chains, inflation, and increasing energy costs and their effect on transportation costs and transportation capacity will affect our business.”
With sales revenues worth 579 million euros, Germany is still the largest single market, closely followed by China, the largest single market in Asia. Having experienced weak growth the previous year, in China sales revenues grew by 50.7 percent to 525 million euros. The third-largest market for Trumpf was the USA with 485 million euros. In fourth place were the Netherlands as the largest European single market with 460 million euros, due to its EUV business with the client ASML.
Investments and acquisitions, high development cost ratio
Due to the economic uncertainties resulting from the coronavirus pandemic, investment was scaled back in the previous fiscal year. The company invested a total of 145 million euros in plots and buildings, technical facilities, and operating and office equipment. This is 25.2 percent less than in the previous year (194 million euros).
With effect from July 16, 2020, Trumpf sold its majority stake in Bespoon to semiconductor manufacturer ST Microelectronics as part of a strategic partnership in UWB positioning technology. Under a contract dated March 18, 2021, Trumpf acquired the Spanish software provider Lantek. Lantek develops, implements and maintains software for sheet metal and metalworking with any cutting technologies.
Trumpf remained a highly research-intensive company in the fiscal year 2020/21. At 382 million euros, research and development costs were slightly higher than the previous year's figure (377 million euros). In relation to sales revenues, the development cost ratio thus increased to 10.9 percent (previous year: 10.8 percent).