In view of the good demand, the company can partially make up for the corona-related declines from 2020.
Munich Europe’s largest machine tool manufacturer DMG Mori has again raised the forecast for the current year in view of the high demand. The company is “continuing to grow – and that with new challenges every day, such as material, logistics and delivery bottlenecks,” said CEO Christian Thönes on Tuesday.
DMG Mori specializes in CNC-controlled lathes and milling machines. In the third quarter, sales rose by eleven percent to 517.4 million euros. Incoming orders even improved by 68 percent to 679.9 million euros. The operating result doubled to 41.5 million euros.
In the past year, the revenues collapsed by around a third to 1.8 billion euros. The operating result fell from around 222 to 82 million euros. Initially, DMG Mori anticipated further possible declines in 2021.
But now Thönes raised the forecast again. Sales are now expected to rise to 2.0 billion euros. Most recently, DMG Mori had forecast 1.95 billion euros. In terms of incoming orders, the group now expects 2.5 billion euros instead of the previous 2.25 billion euros. According to the new forecast, the operating result (EBIT) should increase from just under 82 to around 120 million euros. Here the group had last predicted 100 million euros.
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In view of the good demand, the company can partially make up for the corona-related declines from 2020. However, DMG MORI will not yet be able to match the good results of the record year 2019.
Good order situation for industry, but supply bottlenecks affect the companies
For many industrial companies it is currently a paradoxical situation. The order situation is very good. For example, according to the VDMA, new orders in mechanical engineering increased by 45 percent from June to August. In the same period of the previous year, many customers were still reluctant to invest due to the corona pandemic.
But many corporations find it difficult to meet the demand. “The scarcity of supply chains goes beyond individual components. It hits us harder than we expected, ”said ABB boss Björn Rosengren a few days ago and cut the sales forecast.
The development has also left its mark on DMG Mori. “The pressure on supply chains continues to be high around the world and is additionally exacerbated by logistics bottlenecks,” says the quarterly report. So far, however, “thanks to a stable and good network with partners and suppliers, serious production interruptions have been avoided”.
Thönes wants to expand especially in China. DMG Mori has just initiated the construction of a new, highly automated and fully digitized production plant for five-axis milling machines in the world’s largest market for machine tools. Up to 2,200 machines are to be built annually near Shanghai in the future. The opening is planned for the end of 2022.
More: Chip crisis and tight labor markets – ABB conquers the sales forecast.