The company said 2020 was an “exceptional year” due to the pandemic plus economic weakness, geopolitical uncertainties, industrial restructuring, while global demand for machine tools was “declining significantly” due to Covid-19 and economic factors.
DMG Mori said it could not escape these consequences so order intake, sales revenues and result were clearly below the record year 2019. The negative effects of the crisis could successfully be limited by rapidly introduced and consistently implemented measures to reduce costs, increase flexibility and secure liquidity – while maintaining a stable budget for research and development.
The company’s preliminary figures for the financial year show the order intake was down 38% on 2019 to €1,599.4 million (previous year: €2,563.1 million), sales revenues at €1,831.3 million - below the record year of 2019 (€2,701.5 million) and earnings before interest and taxes (EBIT) amounted to €81.7 million (previous year: €221.7 million).
Chairman of the executive board Christian Thönes, said: “DMG MORI has fulfilled its forecasts, is holding course and goes strengthened into the future. The pandemic has accelerated a lot. Above all, automation, digitization and sustainability. With this strategic triad as well as our global foot-print, broad machine portfolio and far-reaching service offerings DMG MORI is well positioned."
On order intake, DMG Mori noted that in the core business with machine tools and services – without the energy solutions division – the decline was 34%. In the fourth quarter orders reached €411.6 million (-26%; previous year: €554.7 million).
Domestic orders in the whole year were €462.0 million (previous year: €714.8 million). International orders amounted to €1,137.4 million (previous year: €1,848.3 million). The share of international orders was 71% (previous year: 72%).
DMG Mori said it focuses on green machine production and technology leadership and environmental protection are "in harmony" and sustainability has therefore been an integral part of the corporate strategy for many years. Already since May 2020 DMG Mori said it has an equalised CO2 balance.
In addition, it added it has currently achieved an ambitious sustainability target, as all machines delivered since January 2021 are produced worldwide – from raw material to delivery – completely climate-neutral, meaning it is one of the first industrial companies to have a climate-neutral product carbon footprint.
As for a forecast for 2021, DMG Mori said it is “strategically and financially well positioned” and the global machine tool consumption is expected to recover slowly in 2021 after the sharp decline in 2020.
The German Machine Tool Builders' Association (VDW) and the British economic research institute Oxford Economics it said, forecast growth of 17.7% to €64.9 billion (previous year: -23.2%; €55.1 billion).
However, the company added that it cannot be excluded that these forecasts will have to be adjusted during the year due to the continuing global uncertainties and the corona pandemic, including virus mutations.
DMG Mori said that it’s efficiency measures, high cost discipline and the further expansion of future fields make it more resilient and strong for the future and it is focusing in particular on automation, digitization and sustainability. “We focus on digital innovations, top quality, maximum customer benefit and pioneering business models,” the company added.
DMG Mori will publish further information on business development at the annual press conference on 9 March 2021.
