Hermle increases turnover by 12 % as of end of May 2016
- Hermle increases turnover by 12 % as of end of May 2016
- Major investment projects for continued growth
- Annual General Meeting agrees continued high dividend of 10.85 Euro per preferred share
Maschinenfabrik Berthold Hermle AG has successfully increased its incoming orders, turnover and earnings in the first five months of 2016 as against the corresponding period of the previous year, with new orders received by the Swabian machine tool manufacturer increasing by around 8 % to 150.7 mill. Euro from January to May (previous year: 139.6), of which 65.6 mill. Euro (previous year: 63.1) was attributable to domestic sales and 85.1 mill. Euro (previous year: 76.5) to overseas sales. Group turnover rose by around 12 % to 146.1 mill. Euro (previous year: 130.5). Hermle generated a domestic business volume of 61.9 mill. Euro (previous year: 48.9) and an overseas business volume of 84.2 mill. Euro (previous year: 81.6). Earnings saw above-average improvement, boosted by good usage of capacity and the elimination of exchange rate expenses similarly to the end of the first quarter. The order backlog came to 127.8 mill. Euro as of the end of May 2016, corresponding to a slight growth as against the turn of the year (31 December 2015: 123.2) and to a minimal decline as against the previous year’s value (previous year: 128.2).
Under these circumstances, the Company should be wellpositioned to achieve its forecast for 2016 as a whole, which expected turnover to grow in the mid-single digit percentage range and earnings more or less consistent with that of the previous year. It must be noted here that increasing competitive pressure needs to be overcome and wage increases need to be absorbed. There are also many risks for the performance of the economy as a whole and consequently also for machine tool engineering – for instance the Brexit vote and the resultant uncertainty, as well as the numerous geopolitical crises. Hermle expects the successfully launched, high-grade entry-level C 250 machine, which is designed for starting out in 5 axis machining, to be among the sources of positive development.
Annual General Meeting which held recently, the Board of Directors gave further details on two major concurrent investment projects for future organic growth: At the Company’s headquarters in Gosheim, Hermle is expanding its machined production capacities, with one of the Company’s oldest production spaces being expanded by 2017 from an interior floor-to-ceiling height of 5.00 m to 12.50 m while operations are still ongoing. The second major project concerns the development of an additional site in Zimmern ob Rottweil in the neighbouring district of Rottweil, where Hermle procured a land parcel of around 4 hectares in the second quarter of 2016. A new production building for the in-house production of mineral cast machine beds will first be established here in order to increase the security of supply for key components while also developing internal expertise in this area. There is also plenty of space for other activities with new products and services.
The Annual General Meeting agreed to maintain the previous year’s dividend for the 2015 financial year: As in the previous year, a base dividend of 0.80 Euro per ordinary share and 0.85 Euro per preferred share will be distributed in addition to a bonus of 10.00 Euro for all shares, corresponding to a dividend of 10.85 Euro per preferred share.
Maschinenfabrik Berthold Hermle AG is one of the world’s leading manufacturers of milling machines and machining centres. In 2015, the Company generated a Group-wide turnover of 356.6 mill. Euro and an EBIT of 80.4 mill. Euro. Owing to their high quality and precision, Hermle machine tools are used in highly demanding sectors such as medical technology, the optical industry, energy technology, the aircraft, automotive and motor sport industries and their subcontractors. Hermle shares are traded on the regulated Stuttgart and Frankfurt stock markets.
