DMG MORI increases order intake by 12% in the third quarter

• Sales revenues amounted to € 1,629.1 million (previous year: € 1,648.8 million)
• Order intake reached € 1,759.6 million (previous year: € 1,742.0 million)
• EBT was € 99.0 million (previous year: € 108.8 million)
• Earnings after taxes amounted to € 68.9 million (previous year: € 75.1 million)

Bielefeld. In the third quarter 2016, DMG MORI AKTIENGESELLSCHAFT saw a positive development with € 601.4 million or +12% in its order intake (previous year: € 538.7 million). We have thus exceeded the order intake for the last four quarters. The successful autumn trade fairs also contributed to this. Sales revenues amounted to € 536.6 million (previous year: € 558.6 million). EBITDA was € 52.1 million (previous year: € 57.0 million), the EBIT reached € 38.7 million (previous year: € 43.1 million) and EBT amounted to € 37.8 million (previous year: € 43.1 million).

The drop in earnings was mainly attributable to the measures already initiated for realignment. The group recorded earnings after taxes of € 26.1 million for the third quarter 2016 (previous year: € 29.8 million). As at 30 September, order intake was € 1,759.6 million and thereby slightly above the previous year (€ 1,742.0 million). Sales revenues amounted to € 1,629.1 million (previous year: € 1,648.8 million). EBITDA reached € 146.3 million (previous year: € 151.9 million), EBIT was € 104.0 million (previous year: € 111.5 million) and EBT € 99.0 million (previous year: € 108.8 million). As at 30 September 2016 the group recorded earnings after t axes of € 68.9 million (previous year: € 75.1 million).

Sales revenues in the third quarter amounted to € 536.6 million (previous year: € 558.6 million). For the first nine months, sales revenues were € 1,629.1 million (previous year: € 1,648.8 million). International sales revenues were € 1,100.0 million (previous year: € 1,098.7 million). Domestic sales revenues were € 529.1 million (previous year: € 550.1 million). The export quota amounted to 68% (previous year: 67%).

In the third quarter, order intake developed positively: At € 601.4 million or +12%, the company exceeded the figure for the last four quarters (previous year´s quarter: € 538.7 million). We achieved significant growth with our machine tools. This was due in part to our successful autumn trade fairs. As at 30 September order intake was at € 1,759.6 million slightly above the previous year (€ 1,742.0 million). Domestic orders amounted to € 578.2 million (previous year: € 600.5 million). International orders were € 1,181.4 million (previous year: € 1,141.5 million). The share of foreign business was 67% (previous year: 66%).

Key income figures of the DMG MORI group developed as follows in the third quarter: EBITDA was € 52.1 million (previous year: € 57.0 million), EBIT reached € 38.7 million (previous year: € 43.1 million) and EBT amounted to € 37.8 million (previous year: € 43.1 million). As at 30 September, EBITDA amounted to € 146.3 million (previous year: € 151.9 million), EBIT was € 104.0 million (previous year: € 111.5 million) and EBT was € 99.0 million (previous year: € 108.8 million). The group reported earnings after taxes of € 68.9 million, as at 30 September 2016 (previous year: € 75.1 million).

Investments in property, plant and equipment and intangible assets in the first nine months amounted to € 44.6 million (previous year’s value: € 80.1 million).

Expenses for research and development amounted to € 33.7 million (previous year: € 34.4 million). In the first nine months, we launched eight world premieres, including two in the third quarter. At the successful autumn trade fair, the AMB in Stuttgart, DMG MORI presented 29 exhibits. Digitisation is at the heart of our innovation strategy. Thereby we focus on our APP-based control and operating software, CELOS. We are also planning to expand our position in future-oriented t echnologies, such as DMG MORI Technology Cycles and Additive Manufacturing.

On 30 September 2016, the group had 7,375 employees of whom 318 were trainees (31 Dec. 2015: 7,462). There were 4,132 domestic employees (56%) and 3,243 employees (44%) working for the international companies. The personnel ratio was 25.8% (previous year’s period: 23.6%). Personnel costs amounted to € 428.3 million (previous year’s period: € 404.7 million).
The share price at the start of the third quarter was quoted at € 42.28 (1 July 2016) and closed at a price of € 43.34 at the end of the reporting period (30 September 2016).

Forecast

The global economy is still marked by uncertainties. We expect market conditions for machine tools to remain difficult. The global market for machine tools is expected to decrease in 2016. The German Machine Tool Builders´ Association (VDW) and the British economic research institute Oxford Economics now expect in their latest forecast (status: October 2016) a decline of global consumption by 1.7% to € 67.4 billion (forecast in April: +1.9%).

However, for the year as a whole, we are still expecting a slight improvement in order intake compared to last year. We are planning sales revenues of around € 2.25 billion. EBT shall amount to around € 95 million. The earnings trend is marked by one-time effects due to the realignment measures already initiated and planned. Regardless of business performance, the domination and profit transfer agreement ensures the payment of a “guaranteed dividend” of € 1.17. In addition, we are expecting a slight positive free cash flow.

The further growing together to form a globally integrated machine tool company enables us to consolidate our competitive position in global markets. As a ‘Global One Company’, we are focusing on our core business in the machine tool and service segments. As part of this strategy, we reorganise our global sales and service. We will specifically develop our product portfolio and optimise our production capacities. “Global One” stands for integration, innovation and quality.

DMG MORI AKTIENGESELLSCHAFT
The Executive Board

Note: Up-to-date images can be found at http://www.ag.dmgmori.com. All information on the DMG MORI group can also be obtained on twitter at @DMGMORIAG.

Statements relating to the future
This press release contains statements relating to the future, which are based on current estimates by the management regarding future developments. Such statements are based on the management’s current expectations and specific assumptions. They are subject to risks, uncertainties and other factors, which could lead to the actual future circumstances including the assets, liabilities, financial position and profit or loss of DMG MORI AKTIENGESELLSCHAFT differing materially from or being more negative than that those expressly or implicitly assumed or described in these statements. The business activities of DMG MORI AKTIENGESELLSCHAFT are subject to a series of risks and uncertainties, which may result in forward-looking statements estimates or forecasts becoming inaccurate. Should one of these factors of uncertainty or other unforeseeable event occur, or should the assumptions on which these statements are based prove incorrect, the actual results may differ materially from the results stated, expected, anticipated, intended, planned, aimed at, estimated or projected in these statements. Forward-looking statements must not be understood as a guarantee or assurance of future developments or events contained therein.

There are two companies using the name “DMG MORI “: DMG MORI AKTIENGESELLSCHAFT with registered office in Bielefeld, Germany, and DMG MORI COMPANY LIMITED with registered office in Nagoya, Japan. This release refers exclusively to DMG MORI AKTIENGESELLSCHAFT. If reference is made in this release to the “DMG MORI group”, this refers exclusively to the DMG MORI AKTIENGESELLSCHAFT and its group companies.