DMG MORI Confirms Annual Forecast for 2016

The year started off according to plan for DMG MORI AKTIEN-GESELLSCHAFT: In the first quarter, order intake amounted to € 591.6 million and was thus at about the previous year’s level (€ 587.2 million). Sales revenues amounted to € 541.4 million (previous year: € 538.4 million). As in the previous year, EBITDA amounted to € 42.4 million, EBIT reached € 28.0 million (previous year: € 30.0 million) and EBT was € 25.8 million (previous year: € 27.9 million). As of 31 March 2016, the group reported earnings after taxes of € 18.1 million (previous year: € 19.5 million).

Sales revenues in the first quarter were € 541.4 million and thus exceeded the previous year’s figure (+ 1%; € 538.4 million). Domestic group sales revenues were € 184.6 million (previous year: € 184.7 million), international sales increased by 1% to € 356.8 million. As in the previous year, the export share amounted to 66%.

In the first quarter, order intake reached € 591.6 million and was thus at about the previous year’s level (€ 587.2 million). Domestic orders amounted to € 199.0 million (previous year: € 207.7 million). International orders amounted to € 392.6 million (previous year: € 379.5 million). Thus the share of foreign business rose to 66% (previous year: 65%). As of 31 March 2016, the key income figures of the DMG MORI group developed as follows: As in the previous year, EBITDA amounted to € 42.4 million, EBIT was € 28.0 million (previous year: € 30.0 million) and EBT reached € 25.8 million (previous year: € 27.9 million). As of 31 March 2016, the group reports earnings after taxes of € 18.1 million (previous year: € 19.5 million).

Investments in property, plant and equipment and intangible assets in the first three months amounted to € 10.8 million (previous year’s value: € 25.4 million). Here, particularly the already started projects to strengthen our worldwide sales and service presence were a priority.

Expenses for research and development amounted to € 10.9 million in the first quarter (previous year: € 11.1 million). In financial year 2016, we are presenting a total of 12 new developments together with our Japanese partner. In the era of Industrie 4.0, we place particular focus on integrated technology and software solutions. Our app-based control and operating software, CELOS, allows us to currently offer our customers the key factor for an intelligent, networked production.

On 31 March 2016, the group had 7,491 employees of whom 275 were trainees. The number of employees remained almost constant compared to the end of 2015 (31 Dec. 2015: 7,462). At the end of the first quarter, there were 4,074 domestic employees (54%) and 3,417 employees (46%) working for the international com-panies. Personnel costs amounted to € 139.3 million (previous year: € 135.8 million). The share price of DMG MORI AKTIENGESELLSCHAFT at the start of the year was quoted at € 37.05 (04 January 2016). At the end of the first quarter, the share closed at a price of € 40.92 (31 March 2016).

Current
On 6 April 2016, DMG MORI COMPANY LIMITED announced that it had increased its direct and indirect shareholding in DMG MORI AKTIENGESELLSCHAFT to 76.03%. Moreover, at a Supervisory Board meeting, it announced its intention to conclude a domination and profit transfer agreement. Against this background, the Executive Board of DMG MORI AKTIENGESELLSCHAFT has decided in coordination with the Supervisory Board to postpone the Annual General Meeting convened for 6 May 2016 to a later date.

Forecast
The global machine tool market is expected to grow only modestly in 2016. The German Machine Tool Builders’ Association (VDW) and the British economic research institute Oxford Economics expect in their latest forecast (status: April 2016) a growth of global consumption by only 1.9% to reach € 68.6 billion. As in the previous years, the autumn forecast (2015: +4.1%) was significantly corrected downward; currently, this year by 2.2 percentage points. In the financial year 2016, we continue to expect a volatile economic development. Influence factors for the cyclical development and thus, also for the investment tendency of companies are further declining growth dynamics in Asia and persisting exchange rate fluctuations between the international currencies. We confirm our forecast for financial year 2016. We are expecting a slightly better order intake than in the previous year and are planning again sales revenues of around € 2.3 billion. EBT will be significantly below the high level of the record year 2015. We are also expecting a slightly improved positive free cash flow. As a result of DMG MORI COMPANY LIMITED intending to conclude a domination and profit transfer agreement, we are unable, at present, to make any comments on a dividend payment for financial year 2016.