DMG MORI – 2014 the best year in the company history

Posted at: Apr 2


Financial year 2014:

  • At $ 2,142.20 million, order intake rose by 11% (previous year: $ 1,930.59 million)
  • Sales revenues rose by 9% to $ 2,048.11 million (previous year: $ 1,887.5 million)
  • Earnings before taxes (EBT) plus 30% to $ 161.07 million (previous year: $ 124.4 million)
  • Annual profit increased by 30% to $ 111.27 million (previous year: $ 85.64 million)
  • Proposed dividend: $ 0.51 per share

The DMG MORI SEIKI group completed the financial year 2014 as the best year in the company’s history. In a challenging market environment, the company achieved record results in order intake, sales revenues and income. In a market environment becoming increasingly more difficult, DMG MORI accomplished to record the highest order intake in the company history at $ 2,142.2 million (previous year: $ 1,930.59 million). Domestic orders amounted to $ 748.4 million (previous year: $ 648.52 million). International orders were $ 1,393.8 million (previous year: $ 1,282.07 million). Thus, the proportion of foreign business was 65% (previous year: 66%).

Sales revenues of $ 2,048.11 million reached an all-time high in the company’s history. They were $ 160.61 million or 9% above the previous year’s figure ($ 1,887.5 million). International sales revenues rose by 5% to $ 1,332.14 million, domestic sales revenues amounted to $ 715.97 million. The export share was 65%.

On 31 December 2014, the order backlog at the group was $ 1,042.25 million; it was thus $ 94.09 million or 10% above the previous year’s figure ($ 948.16 million).

The DMG MORI SEIKI group could improve its key income figures as at 31 December 2014 compared to the previous year and has thereby achieved the best result in company history: EBITDA increased for the whole year by 20% to $ 213.63 million (previous year: $ 178.16 million); EBIT amounted to $ 167.78 million (+24%, previous year: $ 135.62 million); the EBIT margin rose to 8.1% (previous year: 7.2%). EBT rose by 30% to $ 161.07 million (previous year: $ 124.04 million) and the annual profit of the group reached $ 111.27 million (+30%, previous year: $ 85.64 million). The CNC manufacturer have thereby reached the highest values in all key income figures in the company’s history.

Equity rose by $ 93.45 million to $ 1,163.35 million (previous year: $ 1,069.91 million). This rise essentially results from net income for the year amounting $ 111.27 million. The equity ratio, due to the risen balance sheet total, amounted to 56.8% (previous year: 57.9%).

On 31 December 2014, the group employed 7,166 employees, including 248 trainees, (previous year: 6,722). Thus, the number of employees rose by 444. In the “Machine Tools” segment, we have hired new employees primarily at our sites in Pfronten and Ulyanovsk, as well as at DMG MORI Systems GmbH in Wernau. The personnel increase in the segment “Industrial Services” resulted largely from bundling DMG MORI sales and service capacities in China, Brazil, Canada and Russia.

The development of DMG MORI SEIKI AKTIENGESELLSCHAFT share in the past year proved to be volatile. Over the year, it increased slightly in value by 2.1%. Essentially, the main factor influencing share performance was the above-average level of volatility on the capital markets, shaped by numerous global political conflicts and the resulting macro-economic instability. In comparison, the MDAX rose by around 2.5%. In the stock market year 2014, the share was initially quoted at $ 23.02 (2 January 2014) and reached its highest value of $ 24.64 on 25 July 2014. Following the publication of the business figures for the first half year, the share noted a strong price downturn of 10.8%, which was to continue for the subsequent two weeks. Another drop of the share price occurred in late October (-4.4%), which came to an end not before 28 October, hitting the lowest mark of the year at $ 17.32, following the announcement of business figures for the 3rd quarter. In the subsequent weeks, the share again recorded rising prices and closed on 30 December 2014 at a price of $ 21.59. In the course of the voluntary public tender offer from DMG MORI SEIKI COMPANY LIMITED on 21 January 2015, the share posted a 12.6% jump in the share price on the next day to reach $ 26.48. Currently, our share price is quoted at $ 28.05 (XETRA closing price on 9 March 2015). The Executive Board and the Supervisory Board of DMG MORI SEIKI AKTIENGESELLSCHAFT will propose to the Annual General Meeting on 8 May 2015 to distribute a higher dividend of $ 0.51 per share for financial year 2014 (previous year: $ 0.46). Taking the annual closing price 2014 as a base, this results in a dividend yield of 2.3%.