2021. február 09., kedd, 09:37
2020 was an exceptional year: Corona pandemic plus economic weakness, geopolitical uncertainties, industrial restructuring. Global demand for machine tools was declining significantly due to corona and economic factors. Also DMG MORI could not escape these consequences: 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. Order intake reached € 1,599.4 million (previous year: € 2,563.1 million). Sales revenues were € 1,831.3 million (previous year: € 2,701.5 million). The earnings situation developed successfully despite more difficult market and economic conditions: EBIT amounted to € 81.7 million (previous year: € 221.7 million). The EBIT margin reached 4.5% (previous year: 8.2%). At € 15.7 million, free cash flow was positive (previous year: € 168.8 million).
Christian Thönes, Chairman of the Executive Board: “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."
Demand for machine tools declined significantly due to the already weak global economy and rapid spread of the corona virus. Under extremely difficult global market and economic conditions, DMG MORI achieved an order intake of € 1,599.4 million, which, as expected, was significantly below the record year 2019 (-38%; previous year: € 2,563.1 million). 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 thus 71% (previous year: 72%).
The development of sales revenues was also marked by corona. To protect the health of our employees, customers, partners and suppliers, we implemented a large number of far-reaching measures at an early stage and acted comprehensively, quickly and proactively. In April 2020, there was a temporary partial shutdown in our European production plants and in some areas of selected sales and service companies. In addition, the service and spare parts business was influenced by increasing travel restrictions over the course of the year. As expected, sales revenues of € 1,831.3 million were significantly below the previous year (-32%; € 2,701.5 million). Core operating business declined by -27%. In the fourth quarter, sales revenues amounted to € 526.0 million (previous year: € 808.9 million).
DMG MORI achieved a strong result in the challenging financial year 2020. We were able to successfully limit the negative effects of the crisis by rapidly introduced and consistently implemented measures to reduce costs, increase flexibility and secure liquidity. The earnings situation developed successfully despite more difficult market and economic conditions: EBITDA amounted to € 156.7 million (previous year: € 299.8 million). EBIT was € 81.7 million (previous year: € 221.7 million). We thus achieved an EBIT margin of 4.5% (previous year: 8.2%). EBT reached € 74.9 million (previous year: € 219.1 million). As of 31 December 2020, the group reported EAT of € 52.1 million (previous year: € 154.4 million). In the fourth quarter, EBITDA was € 50.3 million (previous year: € 87.1 million). EBIT amounted to € 28.3 million (previous year: € 67.3 million). The EBIT margin was 5.4% (previous year: 8.3%). EBT reached € 22.0 million (previous year: € 66.8 million). The group reported EAT of € 15.4 million in the fourth quarter (previous year: € 47.1 million).
The financial situation was also affected by the consequences of corona. Stringent liquidity securing enabled us to achieve a free cash flow of € 15.7 million (previous year: € 168.8 million). In particular, a free cash flow of € 81.5 million in the fourth quarter contributed to this positive development (+51%; previous year: € 53.8 million). Our resilience increased significantly with the existing syndicated credit line of € 500.0 million, which was extended early in April 2020 at improved conditions. DMG MORI thus has enough financial resources.
Technology leadership and environmental protection are in harmony at DMG MORI. Sustainability has therefore been an integral part of our corporate strategy for many years. Already since May 2020 DMG MORI has an equalized CO2 balance (Company Carbon Footprint). In addition, we have currently achieved an ambitious sustainability target: All machines delivered since January 2021 are produced worldwide – from raw material to delivery – completely climate-neutral. DMG MORI is thus one of the first industrial companies to also have a climate-neutral Product Carbon Footprint.
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 forecast growth of +17.7% to € 64.9 billion (previous year: -23.2%; € 55.1 billion). However, 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 is strategically and financially well positioned to overcome the crisis and emerge stronger. Our efficiency measures, high cost discipline and the further expansion of our future fields make DMG MORI resilient and strong for the future. We are focusing in particular on automation, digitization and sustainability. With our first completely digital in-house exhibition at the beginning of February in Pfronten, we impressively demonstrated that DMG MORI is the No. 1 partner for the future. We focus on digital innovations, top quality, maximum customer benefit and pioneering business models. We will publish further information on business development at the annual press conference on 9 March 2021.