Hermle records increase in demand in the first quarter of 2021

The number of orders received rises by 9.5% to €77.2 million
Turnover of €64.6 million still 18.7% below previous year’s level,
however at least the level of last year expected for the entire year
Intensive competition and rising material costs affect operating result 

Gosheim, 11 May 2021 – At Maschinenfabrik Berthold
Hermle AG, the moderate recovery in demand that has been noticeable since mid-2020 continued in the first quarter of 2021. The number of orders received by the southern German machine tool and automation specialist rose Group-wide in the first three months by 9.5% to €77.2 million compared to the same period in 2020 (previous year: €70.5 million). While new international orders remained slightly below the previous year’s level at €48.7 million (previous year: €49.3 million), domestic orders rose significantly by 34.4% to €28.5 million (previous year: €21.2 million). After demand initially picked up, primarily in customer sectors such as the packaging, electronics and medical technology industries, positive effects have recently been identified in those sub-sectors of the automotive industry that are not directly affected by the changes in automotive technology. Hermle also saw a growing need for Industry 4.0 solutions: The company is increasingly designing completely automated and networked manufacturing processes for its customers, with Hermle machining centres and machines integrated into the manufacturing processes along with supplementary functionalities such as measuring and cleaning.

On 31 March 2021, the Hermle Group’s orders on hand were €57.5 million, well above the figure of €44.8 million at the end of December 2020, but still significantly below the €90.3 million recorded on the same date in the previous year.

In the first quarter of 2021, Hermle Group-wide turnoverdropped by 18.7% to €64.6 million (previous year: €79.5 million). This was the result of the low orders on hand at the turn of the year due to weak investment activity in the automotive industry and pandemic-related factors. Of this, €26 million (previous year: €32.3 million) came from foreign and €38.6 million (previous year: €47.2 million) from domestic customers. Accordingly, capacity utilisation fell yet again, meaning the operating result developed at a significantly higher rate than turnover. Earnings performance was also adversely affected by very intense competition and in some cases by extremely sharp price increases for purchased materials such as electronic components as well as direct and indirect energy costs, which have previously not been passed along to customers.

Hermle’s financial and net asset situation, which is characterised by high liquidity and an above-average equity ratio, was very solid at the end of March 2021. The number of Hermle employees decreased slightly from 1310 to 1298 compared to the value recorded on the same date in the previous year. Positions that became vacant during the Covid-19 pandemic were not filled, if possible. Since May 2020, a large part of the workforce has been working reduced hours. In addition, employees worked from a home office to the extent possible. Hermle attaches great importance to getting through the pandemic with an intact workforce in order to be able to hit the ground running with a competent team when the next upturn comes along.

Against the backdrop of increasing capacity utilisation in the manufacturing sector, Hermle’s business picked up significantly

in the short term in April 2021. Provided that the economic environment continues to develop positively and we do not have to deal with a renewed outbreak of the virus, the company now believes that Group-wide turnover for the full year 2021 as a whole will at least remain stable compared to 2020, and in a favourable scenario even grow. The operating result will likely develop at a significantly lower rate than turnover. The reasons for this are the ongoing high competitive pressure as well as rising costs due to changes in the regulations governing reduced working hours and the sometimes marked increase in the price of supplier materials.

Online event instead of in-house exhibition

Instead of the traditional Hermle Open House, which had to be cancelled yet again in 2021 due to the Covid-19 restrictions, the company will present its innovations and range of products for the first time during an online event from 15 to 18 June 2021. The focus of the event, entitled "HERMLE MOVES", is on high-performance automation solutions and corresponding new products such as the extremely flexible robot system RS 1.

Press contact: Redaktionsbüro tik GmbH, Gabriele Rechinger, Telephone: +49 (0)911 95 97 870, Email: info@tik-online.de 

Image material: Maschinenfabrik Berthold Hermle AG, Marketing Department, Telephone +49 (0)7426 95 0, Email: marketing@hermle.de