Sales revenues increased to €933.5m (+11%; previous year: €838m). The earnings situation also improved further as EBIT rose to €42.2m (+27%; previous year: €33.2m).
The EBIT margin reached 4.5% (previous year: 4.0%). Free cash flow in particular developed positively, rising to the record value of €113.2 million at the end of the first half year (+242%; previous year: € -79.7 million).
Chairman of the Executive Board Christian Thönes said: “The current business development reflects our performance last year: We have come out of the crisis well and, in addition to new production plants in China and Egypt, with PAYZR we are implementing a new digital subscription business model. DMG MORI has become even more innovative, digital and resilient. For 2021, we are confident and raise our forecast again.”
The company said global demand for machine tools continued to grow in almost all industries in the 2nd quarter. DMG Mori recorded a notable rise in order intake of +92% (previous year: €343.8m). In particular, new machine business increased significantly by +105%.
Overall, orders rose to €658.9m and in the core business with machine tools and services were even +11% above the high pre-corona-level of 2019 (€ 595.1m).
In the 1st half year, order intake increased by +59% to € 1,248.7m (previous year: €784m).
Domestic orders rose to €382.4m (+73%; previous year: €220.5m). International orders increased to €866.3m (+54%; previous year: €563.5m). The share of international orders thus amounted to 69% (previous year: 72%).
In the 2nd quarter, sales revenues of €511.9m were significantly higher than in the previous year (+35%; €380m). In the 1st half year, sales revenues reached €933.5m (+11%; previous year: €838m).
The Executive Board said: “The overall economy and the global market for machine tools are on the road to recovery. According to the April forecast of the VDW and British economic research institute Oxford Economics, global consumption is expected to increase by +15.2% to €66.6bn in 2021. The next association forecast will be published in October.
“Nevertheless, 2021 remains challenging. Rising raw material prices and transport costs as well as more difficult providing of material within the supply chain are affecting the market recovery.
“At DMG Mori, we feel confidence and tailwind. Our strategic fit of automation, digitization and sustainability is more suitable than ever. We expect demand to continue to improve – provided there will still be no significant effects from corona mutations.
“Based on the good performance in the first half year, we are once again raising our forecast for 2021: For the full year we now plan order intake of around €2.25bn (previously: around €2bn). Sales revenues are now expected to be around €1.95bn (previously: around €1.8b).
“We currently estimate EBIT of around €100m (previously: around €60m). Free cash flow is expected to be around €140m (previously: around €70m).
“In short: DMG Mori is well positioned. Our broad machine and automation portfolio is unique in the industry. With our global footprint, far-reaching service offerings and digitization solutions, we provide everything integrated, end-to-end and sustainable from a single source – worldwide.”
