Hermle 2020: Solid results despite the COVID-19 pandemic
Downturn in incoming orders, sales and EBIT as expected
Strong financial basis enables stable dividend payout
Gosheim, 17 March 2021 – Maschinenfabrik Berthold Hermle AG performed well in 2020 despite all the challenges it faced, although its business figures were down slightly due to the impact of the COVID-19 pandemic. Based on preliminary, as yet unaudited, data, the southern German machine tool and automation specialist achieved consolidated sales of more than €296 m (previous year €463.1 m) over the past financial year. The downturn was felt less abroad than in the domestic market, which, in addition to the COVID-19 pandemic, also had to deal with structural changes within the automotive industry. Based on initial calculations, the operating result (EBIT) amounted to roughly €54 m (previous year €114.2 m). The gross sales margin was more than 18% (previous year 24.6%).
Considering the turmoil caused by the COVID-19 pandemic, the satisfactory result helped to further strengthen the financial basis of the Hermle Group in 2020: The equity ratio rose to around 78% (previous year 72.3%). This provides Hermle with the ideal conditions for a stable dividend. Therefore, the Executive Board has today recommended that the Supervisory Board proposes to the AGM on 7 July 2021 an unchanged payout of €0.80 per ordinary share and €0.85 per preference share plus a bonus of €4.20 for each. Employees are also to receive an unchanged bonus for the 2020 financial year, based on the dividend amount.
In 2020, Hermle’s incoming orders throughout the Group totalled approximately €242 m (previous year €414.4 m), with new orders from German customers declining less sharply than those from abroad. After the significant COVID-related slump in the second quarter, demand gradually started to pick up from mid-2020 onwards. At the end of December 2020, Hermle’s order backlog was roughly €45 m (previous year €99.3 m). In the first few weeks of 2021, business was relatively stable compared to the final quarter of 2020. For 2021 as a whole, the German Machine Tool Builders’ Association (VDW) expects production within the German machine tool industry to increase by roughly 6%, but future demand is still a major concern due to the ongoing risks of the COVID-19 pandemic. Thanks to its highly flexible structures, extremely solid financial basis and extensive automation expertise, Hermle is well equipped to cope with a prolonged economic downturn before bouncing back.
Hermle will publish comprehensive figures on the 2020 financial year as well as a forecast for 2021 at the end of April 2021.
Press contact: Redaktionsbüro tik GmbH, Gabriele Rechinger, T +49 (0)911 95 97 870, E-Mail: info@tik-online.de
Image material: Maschinenfabrik Berthold Hermle AG, Marketing Department, Phone +49 (0)7426 95 0, E-Mail: marketing@hermle.de
