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Hermle raises forecast for 2021 growth: turnover set to climb from 20 % to 25 %
Hermle raises forecast for 2021 growth: turnover set to climb from 20% to 25%, accompanied by an almost proportional improvement in earnings
Surprisingly strong demand in the third quarter
Incoming orders rose by 75% up to the end of September
Group-wide turnover up 6% after nine months
Gosheim, 11 November 2021 – Maschinenfabrik Berthold Hermle AG enjoyed surprisingly dynamic growth in the third quarter of 2021. As such, the Swabian machine tool and automation specialist is raising its forecast for the year overall. Hermle now expects a 20% to 25% rise in turnover for 2021 (turnover in 2020: €296.9 million) and an almost proportional improvement in earnings (EBIT in 2020: €54.2 million), provided it can continue to minimise the frequent spate of supply chain disruptions through internal measures. Previously, the company had expected a turnover increase of at least 10% and a disproportionately low increase in earnings.
Compared with the corresponding period of the previous year, which was severely impacted by the COVID-19 pandemic, the level of orders received throughout the Hermle Group rose by 75.1% to €309.9 million (previous year: €177.0 million) in the first nine months of 2021. New domestic orders were up 75.9%, totalling €116,3 million (previous year €66.1 million), while orders from overseas grew by 74.6% to €193.6 million (previous year €110.9 million). The strong demand in the third quarter, which also included larger individual projects and catch-up effects, was down to a wide range of customers from various sectors and more than compensated for the general investment restraint that still prevails in some parts of the automotive industry. On 30 September 2021, the Hermle Group's orders on hand totalled €128.4 million compared to €62.6 million recorded on the same date in the previous year and €44.8 million as of 31 December 2020.
As expected, the Group-wide turnover of the technology leader in 5-axis machining centres continued to recover in the third quarter and reached €226.4 million in the first nine months of 2021, meaning it was 6.0% higher than the corresponding figure for the previous year (€213.6 million). Of this, €92.4 million (previous year: €80.7 million) came from domestic customers and €134.0 million (previous year: €132.9 million) from foreign customers. Greater capacity utilisation obviously helped to significantly improve EBIT in the third quarter, although it remained slightly below the comparable figure for 2020 for the entire first nine months of 2021.
By following a long-term focused, consistent HR policy, Hermle was able to respond quickly to the dynamic developments in demand. At the end of September 2021, the Hermle Group employed 1,309 people, very similar to the figure at the turn of the year and on the same date in the previous year (30.09.2020: 1,312; 31.12.2020: 1,304). Short-time working ended throughout the Group at the end of August 2021. In fact, some areas have had to work overtime recently.
Hermle's financial and net asset situation remained unchanged and solid in the reporting period: on 30 September 2021, an equity ratio of 73.5% was reported (30.09.2020: 75.3%; 31.12.2020: 79.1%).
Between January and September 2021, Hermle invested €4.4 million in tangible and intangible assets throughout the Group (previous year: €14.0 million). The main focus of investment was on a large machining centre for component manufacture, which has since been put into operation, quality assurance measures, in-house production machinery and new warehouse technology for the U.S. installation location.
The upward trend in orders continued in October, even if the spike in demand, which had been boosted in the third quarter by catch-up effects and larger individual projects, flattened out somewhat. Hermle therefore expects capacity utilisation to remain very high throughout the final quarter. The only way to cope with this is by compensating for any shortfalls arising from increasing COVID-19 cases and considerable supply chain disruptions through various internal measures such as working overtime, redesigning processes and moving to alternative suppliers. Hermle's traditionally well-stocked stores, which help to efficiently address fluctuations in demand and supply, have gradually dwindled as a result of strong business in the third quarter. Right now, from the way things look, Hermle will again benefit from solid order books in 2022.
Maschinenfabrik Berthold Hermle AG is one of the world's leading manufacturers of milling machines and machining centres and offers its customers complete automation solutions under one roof. In 2020, the company generated Group-wide turnover of €296.9 million and EBIT of €54.2 million. Owing to their high quality and precision, Hermle machine tools and manufacturing systems are used in high-tech sectors such as toolmaking and mould construction, medical technology, the optical industry, packing technology, the aerospace industry, energy technology, electronics, the automotive and motor sport industries including their subcontractors. Hermle shares are traded on the regulated stock markets in Stuttgart and Frankfurt am Main.
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