Maschinenfabrik Berthold Hermle AGMaschinenfabrik Berthold Hermle AG

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Hermle in the financial press.

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Editorial office tik GmbH

Gabriele Rechinger

Phone: 0911 95 97 870

E-mail: info@tik-online.de

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Maschinenfabrik Berthold Hermle AG

Udo Hipp / Marketing Manager

Phone: 07426 95-6238

E-mail: udo.hipp@hermle.de

Hermle concern’s turnover grows by 8% in the first six months of 2019

05.09.2019

Hermle concern’s turnover grows by 8% in the first six months of 2019
Operating results rise from €45.2 m to €50.7 m
Intake of orders falls by 12%; volume of orders remains stable
Forecast for the year remains: stable or marginally positive business trend

Gosheim, August 29, 2019 – Over the first six months of 2019, the Maschinenfabrik Berthold Hermle AG has made steady progress as planned despite the developing economic slow-down: Group turnover of the Swabian machine tool manufacturer increased by 7.8% against the corresponding previous-year period to €231.7 million (previous year: €214.9 million). Some business shifted into July. Domestic proceeds rose by 27.3% to €106.4 million (previous year €83.6 million), whilst the overseas order volume fell by 4.6% to €125.3 million (previous year €131.3 million). Business was especially brisk with automation components and the new C 650 machining centre from Hermle's Performance Line.

Hermle's group earnings before interest & taxes (EBIT) rose 12.2% to €50.7 million (previous year: €45.2 million). In addition to the better use of capacity brought about by the increase in orders, the company profited from an improved product mix and positive currency effects. Ordinary business amounted to €50.6 million. The equivalent figure of €50.2 million for 2018 included a non-sustainable singular effect amounting to €4.9 million. It resulted from the majority takeover of the HLS Hermle Systemtechnik GmbH subsidiary from January 1, 2018. The semi-annual profits amounted to €37.3 million (previous year including singular effect: €37.9 million).

Once again, the good results have consolidated Hermle's results and financial status: As of 30th June 2019, the company disposed of an equity ratio of 70.2% (31st Dec. 2018: 68.3%) and liquid funds amounting to €152.0 million (31st Dec. 2018: €128.6 million). The operative cash flow rose by 11.0% to €42.5 million during the first six months of 2019 (previous year €38.3 million).

Investments in tangible and intangible assets amounted to €4.5 million (previous year: €5.2 million). In the main, they involved chipping production and quality assurance.

As expected, the Hermle concern's incoming order volume decreased by 12.0% to €218.9 million (previous year: €248.7 million) during the first six months of 2019. Of that total, €89.2 million was generated within Germany (previous year: €112.6 million) and €129.7 million on international markets (previous year: €136.1 million). The decrease was significantly less than the average for the German machine tool manufacturing sector. According to its professional association, there were 23% fewer new orders across the sector (calculated with adjustment for inflation). Hermle attributes the relatively moderate downturn to, amongst other things, its comprehensive, one-stop-shop automation palette and the broad customer base consisting mainly of medium-sized businesses. At the end of June 2019, orders on hand totalled €135.2 million. This is less than the amounts registered on the equivalent date in 2018 (€158.8 million) and at the end of that year (€148.0 million), but it still represents a robust figure.

On 30th June 2019, the Hermle Group employed 1,276 people, which is 64 more than at the turn of the year. The number of apprentices rose from 70 to 79 (this year compared with last year). New jobs were created mainly in the area of service, as well as in installation in the first quarter of 2019 and in the foreign subsidiaries. From the second quarter onwards, some vacancies arising have not been filled through recruitment from outside: Where possible, outstanding time on some employees' flexitime accounts is to be made up. This anticipates the expected downturn in demand.

Hermle reckons that the demand will decelerate further as the year progresses, and the production planning for the second half of the year has been adjusted somewhat. For the full year 2019, the company expects a Group-wide decrease in incoming orders of up to 20%, and in view of the increasing economic risks it regards a more significant downturn as becoming more and more probable. Should this trend continue, the results in terms of turnover and yield will make themselves felt in 2020 as well. On the basis of the firm volume of orders, Hermle remains cautiously optimistic for the current year and still expects a stable to slightly positive revenue situation – amounting at best to an increase of 5% – and operating results comparable to those of the previous year.

Press contact: Redaktionsbüro tik GmbH, Gabriele Rechinger,
Telephone: +49 (0)911 95 97 870, Email: info@tik-online.de 

Image material: Maschinenfabrik Berthold Hermle AG, Udo Hipp,
Telephone: +49 (0)7426 95 6238, Email: udo.hipp@hermle.de

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