Chairman of the executive board Christian Thönes: “Challenging, but successful – that was 2021 for DMG Mori. We demonstrated financial strength, resilience, innovative power and team spirit.
“We were able to mitigate the economic consequences of the pandemic to a considerable degree and solve the global supply shortages for the most part in close cooperation with our partners and suppliers. We even exceeded our forecasts at the end of the year. The strategic fit of automation, digitization and sustainability is currently more suitable than ever."
The company said global market for machine tools was on course for recovery in 2021 and this development was impacted by the ongoing pandemic, material availability and supply shortages, rising inflation as well as high raw material and transportation costs. Order intake grew by +57% to €2,517.2m (previous year: €1,599.4m).
New machine business in particular increased significantly by +71%. Overall, the core business with machine tools and services was even +5% above the high pre-corona level of 2019 (€2,401.8m). Domestic orders increased by +62% to €747.4m (previous year: €462m). International orders rose by +56% to €1,769.8m (previous year: €1,137.4m). The share of international orders was 70% (previous year: 71%).
Sales revenues rose by +12% to €2,052.9m despite more difficult material supplies, increasing logistics shortages as well as high raw material and transport costs (previous year: €1,831.3m). The export share was 68% (previous year: 70%). Pressure on supply chains was and remains high worldwide. Thanks to a stable, long-standing network with partners and suppliers, DMG Mori said it was able to ensure delivery capability and avoid serious production interruptions.
As for 2022, DMG Mori said this year will again be marked by major challenges, in particular due to the development in the Ukraine, of which the consequences are not yet completely foreseeable at present.
DMG Mori said it “strongly condemns the war of the Russian government against the Ukraine and has immediately stopped all deliveries of machines, spare parts, components and services to Russia as well as the production in Ulyanovsk”.
In addition, the global economy is impacted by the ongoing corona pandemic, more difficult material supply as well as high raw material and energy costs. DMG Mori said it is a "stable and reliable partner" even under difficult external conditions and has a strong foundation, a clear strategic plan for the future and are confident for the current financial year.
The company added: "We are keeping up a high speed – both operationally and strategically – we innovate and invest further. We are strengthening our global presence with new production plants. The grand opening of the highly automated and fully digitized production plant DMG Mori Manufacturing Solutions in Pinghu near Shanghai is planned for 2023.
"Integrated automation and end-to-end digitization solutions extend our core business with machine tools. We are further expanding the digital subscription business model PAYZR for Software-as-a-Service and Equipment-as-a-Service.
For the financial year 2022, DMG Mori said it is planning order intake of around €2.5bn. Sales revenues are estimated to be around €2.3bn and it expects EBIT of around €180m. Free cash flow is to be around €130m. Our forecasts are subject to the condition that globally there will be no further impact from the Russia-Ukraine conflict.
