The global market for machine tools continued to be impacted by geopolitical factors. Global supply and material shortages, rising prices for raw materials, transport, logistics and energy as well as high inflation, the ongoing war in Ukraine and the lockdown in parts of China affected demand for capital goods. In this challenging market environment, DMG MORI achieved order intake of € 813.6 million in the second quarter and thus recorded the best second quarter ever in the company’s history (+23%; previous year: € 658.9 million).
In the first half year, DMG MORI also reached a new record for order intake: orders increased by +34% to € 1,675.2 million (previous year: € 1,248.7 million). As a result, order intake in the first six months not only exceeded the pre-corona level 2019 (+19%; € 1,412.3 million) but was even +6% above the record figure of 2018 (€ 1,577.1 million). New machine business in particular performed well with +36% and reflected the increased demand for our holistic and sustainable automation and digitization solutions. Domestic orders rose to € 500.1 million (+31%; previous year: € 382.4 million). International orders increased to € 1,175.1 million (+36%; previous year: € 866.3 million). The share of international orders was 70% (previous year: 69%).
Chairman of the Executive Board Christian Thönes: “DMG MORI benefits from its consistent realization of the strategic fit of automation, digitization and sustainability. After a strong first quarter 2022, we achieved new record figures for order intake and free cash flow in the first half-year – and this against the background of high volatility and a more difficult market environment. Based on this successful business development, we are raising our forecast for 2022 here.”
In the second quarter, sales revenues rose by +10% to € 562.6 million (previous year: € 511.9 million). In the first half year, sales revenues grew by +20% to € 1,123.6 million despite the continued difficult materials and logistics situation, which was further intensified by the lockdown in parts of China (previous year: € 933.5 million). The increase was due to the good new machine as well as the service and spare parts business. DMG MORI has so far been able to avoid serious production interruptions thanks to a stable, long-standing network with partners and suppliers. Domestic sales were € 365.9 million (previous year: € 299.4 million). International sales amounted to € 757.7 million (previous year: € 634.1 million). The export share was 67% (previous year: 68%).
Results of Operations
The results of operations improved significantly: EBITDA rose to € 67.4 million in the second quarter (previous year: € 46.5 million). EBIT increased by +50% to € 45.7 million (previous year: € 30.4 million). The EBIT margin improved to 8.1% (previous year: 5.9%). EBT amounted to € 45.7 million (previous year: € 29.1 million). EAT grew to € 32.2 million (previous year: € 20.3 million).
In the first half year, EBITDA rose to € 140.4 million (previous year: € 74.2 million). EBIT improved by +141% to € 101.6 million (previous year: € 42.2 million). The EBIT margin doubled to 9.1% (previous year: 4.5%). EBT increased to € 101.8 million (previous year: € 40.6 million). The group reported EAT of € 71.8 million as of 30 June 2022 (previous year: € 28.3 million).
The financial position was also stable at a high level: free cash flow amounted to € 70.9 million in the second quarter (-4%; previous year: € 73.6 million). In the first half year, free cash flow rose to a new all-time high of € 126.3 million (+12%; previous year: € 113.2 million).
Due to the successful business development, DMG MORI has raised the order intake and free cash flow forecasts for the financial year 2022: DMG is now planning order intake of around € 2.7 billion (previously around € 2.5 billion). Sales revenues are further expected to be around € 2.3 billion. EBIT is to be unchanged at around € 180 million. Free cash flow is estimated at around € 150 million (previously around € 130 million).