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DMG Mori confirms forecasts for 2019

Posted on 27 Nov 2019 and read 740 times
DMG Mori confirms forecasts for 2019While the machine tool industry partly suffered significantly higher losses in the first nine months of this year, order intake at DMG Mori AG reached 2,008.4 million euros (-12% compared with the first nine months of 2018) — as predicted.

Sales revenues increased by 2% to 1,892.6 million euros, EBIT rose by 8% to 154.4 million euros (the EBIT margin improved to 8.2%), and free cash-flow (115.0 million euros) was at the previous year’s level.

Order intake in Q3 2019 amounted to 596.1 million euros. Orders from Germany for the first three quarters totalled 582.0 million euros (2018 equivalent 681.9 million euros), while foreign orders totalled 1,426.4 million euros (2018 equivalent 1,588.7 million euros).

The foreign share was 71% (2018 70%).

Sales revenues in Q3 amounted to 616.2 million euros (2018 equivalent 642.6 million euros). The export quota was 71% (2018 69%).

On 30 September 2019, the order backlog amounted to 1,709.8 million euros (31 December 2018: 1,609.9 million euros).
On 30 September 2019, 7,333 employees (including 371 trainees) were employed by the group (31 December 2018: 7,503).

At the end of the third quarter, 4,433 employees (60%) worked for DMG Mori AG’s domestic companies and 2,900 employees (40%) for its foreign companies.

Expenditure on research and development in the first nine months of 2019 amounted to 41.2 million euros (2018 equivalent 42.4 million euros). DMG Mori (www.uk.dmgmori.com) was the largest exhibitor at the recent EMO show in Hanover, with more than 10,000m2 of stand space and many new developments — particularly in the areas of automation, digitalisation and additive manufacturing.

With regard to its forecast for 2019, the company says the overall economic situation is becoming increasingly difficult.

“The world-wide market for machine tools is expected to continue to lose momentum in 2019.

“The global economic weakness, the trade conflict between the USA and China, and the industrial structural change are affecting the business in the mechanical-engineering sector, with the demand for capital goods decreasing noticeably.

“As expected, the Association of German Machine Tool Builders (VDW) and the British economic research institute Oxford Economics have significantly revised down the forecast in their October publication: world-wide consumption is now expected to fall in 2019 for the first time in three years — by 3.0% to 71.5 billion euros.”

That said, DMG Mori reaffirms its forecasts for 2019; it is still planning an order intake of around 2.6 billion euros and sales revenues of around 2.65 billion euros. There are two companies using the name DMG Mori: DMG Mori AG, with registered offices in Bielefeld, Germany; and DMG Mori Co Ltd, with registered offices in Nara, Japan. DMG Mori AG is (indirectly) controlled by DMG Mori Co Ltd.