HERMLE impacted by reluctance to invest during the first quarter of 2024

HERMLE impacted by reluctance to invest during the first quarter of 2024
Downturn in incoming orders, turnover and result
HERMLE Open House confirms the high potential of automation solutions

Gosheim, 15 May 2024 – Maschinenfabrik Berthold HERMLE AG felt the impact of the industry’s expected reluctance to invest during the first quarter of 2024: The number of incoming orders of the Swabian machine tool and automation specialist during this period fell throughout the Group by 11.9% to €127 m compared to the corresponding period in the previous year (previous year: €144.2 m). Domestically and internationally, new orders decreased by 3.4% to €43.2 m (previous year: €44.7 m) and by 15.8% to €83.8 m (previous year: €99.5 m) respectively. As of 31 March 2024, the backlog of orders amounted to €150.8 m compared to €130.5 m recorded at the end of December 2023. The drop in demand continued in April 2024.

In the first three months of 2024, HERMLE Group turnover fell by 15.2% to €106.6 m compared to the exceptionally strong first quarter of 2023, which benefited from the high backlog or orders from the previous year (previous year: €125.7 m). Domestically and internationally, the business volume decreased by 19.3% to €38.5 m (previous year: €47.7 m) and by 12.7% to €68.1 m (previous year: €78.0 m) respectively. As forecast, the operating result exhibited a disproportionate decrease. In addition to lower capacity utilisation, this result was also down to a noticeable increase in staff costs. The number of employees within the HERMLE Group increased to 1,521 as of 31 March 2024, compared to 1,511 at the end of 2023 and 1,415 on the same date in the previous year. Recruitment took place during the reporting period particularly in the areas of automation and foreign sales and service.

HERMLE investments in the first quarter of 2024 were well above the previous year’s level and generally related to expansion of the production facility in Zimmern ob Rottweil. Even in the current difficult economic climate, HERMLE can, thanks to its solid financial and asset position (at the end of March the company still had an equity ratio of more than 70%), implement the measures for expanding capacities in the medium term as planned without the need to borrow.

The fact that demand for HERMLE products is likely to remain high in the medium term was clearly demonstrated at this year’s HERMLE Open House, a four-day exhibition held at the company’s headquarters in Gosheim at the end of April. More than 2,500 visitors from around 1,100 companies and over 30 countries took this opportunity to discover the wide range of HERMLE products and innovations. The main focus of interest was on the new Generation 2 models of HERMLE machining centres, equipped with the latest hardware and software technology, as well as various automation solutions featuring the company’s own digitalisation modules for cost-effective production. HERMLE is therefore also helping its customers cope with the growing shortage of skilled workers.

Maschinenfabrik Berthold HERMLE AG is one of the world’s leading manufacturers of high-quality milling machines and machining centres and offers its customers complete automation solutions from under one roof. Owing to their high quality and precision, HERMLE machine tools and manufacturing systems are used in high-tech sectors such as toolmaking and mould construction, medical technology, the electronics and chip industries, packing technology, the optical industry, the aerospace industry, energy technology as well as the automotive industry including their subcontractors. HERMLE shares are traded on the regulated stock markets in Stuttgart and Frankfurt am Main.
 

Press contact: Redaktionsbüro tik GmbH, Gabriele Rechinger,
T 0911 988 170 72, E-Mail: info@tik-online.de 
 

Image material: Maschinenfabrik Berthold HERMLE AG, Udo Hipp,
T 07426 95 6238, E-Mail: udo.hipp@hermle.de