DMG MORI results show decline in demand for machine tools

Demand for machine tools declined significantly, due in particular to the COVID-19 pandemic.

DMG MORI might have been bullish and positive when they sent out a press release with the headline of: DMG MORI with positive results in the first half year 2020, but in fact if you look at their figures you can see that they, like many others are down on sales, revenues and everything else. The whole industry is reporting lower earnings and it is nothing to be ashamed of – many are in the same boat.

DMG Mori has reported its financial results for the first half of 2020. The group is one of the largest producers of cutting machine tools globally, as well as a developer of Directed Energy Deposition (DED), Laser Beam Powder Bed Fusion (PBF-LB) and hybrid metal Additive Manufacturing technologies.

DMG Mori’s Lasertec 30 Dual SLM machine, a Laser Powder Bed Fusion (PBF-LB) machine. Recognising the importance of digital manufacturing solutions, including Additive Manufacturing, to aid in the manufacturing industry’s recovery, the group noted that in the financial year 2020 it will present 35 new innovations, including three automation solutions, 20 digital innovations and two new DMG Mori components

Like most companies, DMG Mori stated that it had felt the effects of the coronavirus (COVID-19) pandemic, and a corresponding decline in the global demand for machine tools. Order intake, sales revenues and earnings for the first half of 2020 were significantly below the high figures of 2019.

The company reported order intake of €784 million for the first half of the year, down from €1,412.3 million in 2019. Sales revenues were €838 million (2019: €1,276.4 million), with an EBIT figure of €33.2 million (2019: €103.4 million) and an EBIT margin of 4% (2019: 8.1%).

Responding to the results, Christian Thönes, Chairman of the Executive Board, stated that the coronavirus had accelerated many of the company’s customers’ transitions to the digital factory model, reinforcing the group’s focus on its advanced and digital technology offerings.

“This strengthens our intention to further expand our future fields of automation, digitisation and Additive Manufacturing,” he commented. “Investing in innovations, and especially in digitisation, is the only way out of the crisis. The economic situation is and remains challenging. But we are well-positioned and will continue to have positive results.”

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