DMG MORI increases its revenues by 6%


forecastIn 2015 DMG MORI increased its sales revenues by 6% to € 1,648.8 million (previous year: € 1,562.4 million). We made good on more ground in the third quarter. Order intake was slightly higher than in the previous year at € 1,742.0 million (previous year: € 1,740.8 million). EBITDA amounted to € 151.9 million (+4%; previous year: € 145.9 million), EBIT reached € 111.5 million (previous year: € 111.7 million) and EBT climbed to € 108.8 million (+2%; previous year: € 106.7
million). As at 30 September 2015, the group recorded earnings after taxes of € 75.1 million (+2%; previous year: € 73.7 million). Positive impulses were largely received from the Asian markets China and Korea. In Europe, we recorded a rise in the demand for machine tools foremost in Italy and France.

Sales revenues in the third quarter rose to € 558.6 million (+6%; previous year: € 528.0 million). In the first nine months, sales revenues rose to € 1,648.8 million and were thereby 6% above the previous year’s value (previous year: € 1,562.4 million). International sales of the group rose by 9% to € 1,098.7 million. Domestic sales amounted to € 550.1 million. The export quota amounted to 67% (previous year: 65%).

As to order intake we made good on more ground in the third quarter; it amounted to € 538.7 million and was thus above the value of the previous year (€ 530.7 million). As at 30 September, order intake reached € 1,742.0 million (previous year:
€ 1,740.8 million). Orders from the domestic market amounted to € 600.5 million (previous year: € 628.6 million). International orders amounted to € 1,141.5 million (previous year: € 1,112.2 million). The quota of international orders was 66% (previous year: 64%).

Key income figures of the DMG MORI group developed as follows in the third quarter: EBITDA rose to € 57.0 million (previous year: € 55.7 million), EBIT amounted to € 43.1 million (previous year: € 43.9 million) and EBT reached € 43.1
million (previous year: € 42.1 million). As at 30 September, EBITDA amounted to € 151.9 million (previous year: € 145.9 million), EBIT amounting to € 111.5 million was at the same level as in the previous year (previous year: € 111.7 million) and
EBT rose to € 108.8 million (previous year: € 106.7 million). As at 30 September 2015, the group reported earnings after taxes of € 75.1 million (previous year: € 73.7 million).
Investments in plant, property and equipment as well as intangible assets amounted to € 80.1 million in the first nine months (previous year’s value: € 78.6 million). The focus of investments is on the construction projects started in the previous years.
Upon completion of our construction projects in 2016 in Russia and South Korea, we will significantly reduce the investment level. The expenses for research and development in the first nine months amounted to € 34.4 million (previous year: € 32.7 million). At international and national trade fairs in the first nine months, we presented jointly with our Japanese partner 10 world premieres, which are equipped with the CELOS control and operating software, and in the new Corporate Design. The changeover of our product portfolio to the Corporate Design was completed successfully at the EMO autumn fair in Milan.

On 30 September 2015, the group had 7,361 employees, of whom 312 were trainees (31 Dec. 2014: 7,166). The number of employees rose by 195. At our domestic companies, 4,056 employees are on staff (55%) and 3,305 employees (45%) at the foreign companies. Cost of personnel amounted to € 404.7 million (previous year’s period: € 371.4 million). The personnel ratio was 23.6% (previous year’s period: 22.8%).

The share of DMG MORI AKTIENGESELLSCHAFT proves stable in the course of the year in comparison to the volatility in the capital markets. The security showed a positive performance with a plus of 45% within the first nine months. The MDAX
recorded a plus of 14% in the same period. In the third quarter, too, the share showed a stable development: The price in the beginning of the reporting period was € 32.79 (01 July 2015) and closed at the end of the third quarter with € 34.29
(+4.6%). The market capitalisation currently amounts € 2,824.0 million (reporting date: 23 Oct. 2015).

The worldwide market for machine tools will decline in the year 2015 according to the latest forecasts. The VDW and the British economic research institute Oxford Economics expect in their latest forecast (status: October 2015) a decline in global
consumption by 4.3% to € 59.3 billion (forecast of April 2015: +3.3% to € 64.0 billion). Also consumption in Germany will likely be slightly lower (-0.3%) in the year 2015. We intend to increase the share of our Services division further with its globally leading service range and thereby ultimately our earning power. Our activities also aim at the advancement of complex services for the improvement of productivity of our installed machine tools, as well as the development of products to raise the
scheduled service calls.

The overall economic dynamics in the third quarter have slowed down. In particular, the declines of the growth rates in China as well as the recession in key emerging countries burden the global economy. We believe that the global economic
development will remain volatile overall.

Due to the difficult market environment and the present postponement of investments we are now planning an order intake from € 2.3 to € 2.4 billion for the current financial year. We confirm our annual forecast: Sales revenues should amount to around € 2.25 billion. In the fourth quarter, we still expect rising sales and earnings contributions. On the assumption that the market development will continue according to our expectations, we plan to achieve EBIT of around € 165 million and
EBT of around € 160 million for the complete year. Furthermore, we continue to assume a positive free cash flow between € 10 million and € 20 million. Provided that these figures are achieved, we plan to pay a dividend for the financial year 2015.