DMG MORI held up well in financial year 2016 despite a difficult market environment: Order intake of € 2,369.9 million reached a new record high (previous year: € 2,282.8 million). Although the worldwide market for machine tools was in decline at -1.7%, DMG MORI rose order intake by 4%. By the concentration on the core business with machine tools and services, DMG MORI set the course for the future. This includes measures for a new sales and service structure worldwide, optimising production capacity and sale of companies that do not form part of the core business operations.
Order intake grew increasingly positive over the course of the year: After orders in the third quarter had already surpassed the level reached in the previous four quarters by 12%, order intake rose in the fourth quarter of 2016 to € 610.3 million – an increase of 13% (previous year’s quarter: € 540.8 million). Over the whole year order intake increased by 4% to € 2,369.9 million (previous year: € 2,282.8 million). In the reporting year DMG MORI thus achieved the highest order intake so far in the 146 years of company history.
Sales revenues of € 2,265.7 million were slightly below the previous year (€ 2,304.7 million). In the fourth quarter sales revenues reached € 636.6 million (previous year: € 655.9 million). The export share remained as in the previous year at 67%.
The results of operations in financial year 2016 developed as follows: EBITDA amounted to € 169.7 million (previous year: € 243.1 million), EBIT reached € 103.9 million (previous year: € 185.9 million) and EBT was € 94.1 million. The previous year’s figure of € 217.3 million includes the one-off revenue item (€ 37.8 million) from the sale of shares in DMG MORI COMPANY LIMITED. The development of earnings 2016 was essentially marked by the effects amounting to about € 75 million for the measures of implementing the realignment.
In the fourth quarter EBITDA reached € 23.4 million (previous year: € 91.2 million), EBIT was € -0.1 million (previous year: € 74.4 million) and EBT amounted to € -4.9 million (previous year: € 108.5 million). The results were significantly influenced by the one-off effects primarily occurred in the fourth quarter.
The current forecast for machine tools assumes moderate growth in 2017 despite considerable uncertainties. The VDW (German Machine Tool Builders’ Association) and the British economic research institute, Oxford Economics, currently expect consumption worldwide to grow by 2.1%.
DMG MORI is expecting a difficult international market environment in the current financial year. To be positioned optimally for the individual markets and the associated challenges, the worldwide sales and service structure has been realigned. Since January, DMG MORI AKTIENGESELLSCHAFT has been managing the home market Germany, the EMEA region (Europe, Middle East, Africa) and the Indian and Chinese markets. DMG MORI COMPANY LIMITED is responsible for its home market Japan, the USA and the remaining regions in Asia and the Americas. This new structure ensures fast decisions to suit the specific markets; it improves efficiency not only for DMG MORI but more especially for our customers.
As “Global One Company“, DMG MORI is strengthening its competitive standing on the world markets. Together they are focusing on the core business of machine tools and services. “Global One” stands for integration, innovation and quality.
they have started the new financial year well and as expected as regards order intake. DMG MORI expects particular stimulus to come in February from the traditional Open House in Pfronten – the industry highlight at the start of the year. Further details of business development in 2017 will be announced at the balance sheet press conference on 9 March 2017.