DMG Mori's order intake, sales and earnings in the first nine months of 2020 were also significantly below the previous year's high figures due to the coronavirus pandemic. Order intake reached 1,187.8 million euros (previous year: 2,008.4 million euros). Turnover amounted to 1,305.3 million euros (previous year: 1,892.6 million euros). The earnings situation was positive despite the difficult market and general conditions: EBIT amounted to 53.4 million euros (previous year: 154.4 million euros). The EBIT margin reached 4.1% (previous year: 8.2%).

CEO Christian Thönes: "DMG Mori is resilient and future-proof. We have succeeded in optimizing structures and costs during the crisis. We have also achieved a great deal in expanding our future fields - particularly automation, digitalization and sustainability. This gives us a positive outlook. We are slightly raising our forecast for 2020."

Decline in incoming orders

Demand for machine tools continued to decline due to the coronavirus pandemic. In the third quarter of 2020, DMG MORI achieved an order intake of EUR 403.8 million (minus 32 percent; previous year: EUR 596.1 million) under massively more difficult market and general conditions worldwide. Orders thus increased compared to the previous quarter (plus 17 percent; Q2 2020: EUR 343.8 million).

As at September 30, 2020, DMG MORI recorded a corona-related decline in order intake to EUR 1,187.8 million (minus 41 percent; previous year: EUR 2,008.4 million). In operational terms, the decline amounted to minus 37 percent, as orders from the previous year - adjusted for the Energy Solutions division sold in 2019 - amounted to EUR 1,875.7 million. Orders from Germany amounted to 344.6 million euros (previous year: 582.0 million euros). Orders from abroad amounted to 843.2 million euros (previous year: 1,426.4 million euros). This means that, as in the previous year, the foreign share amounted to 71%.

A quarter less turnover than in the previous year

At 467.3 million euros, turnover in the third quarter was down on the previous year's high figure (minus 24%; 616.2 million euros). Compared to the previous quarter, turnover increased (plus 3%; Q2 2020: EUR 380.0 million). In the first nine months, turnover amounted to 1,305.3 million euros (minus 31%; previous year: 1,892.6 million euros). The decline is primarily due to the coronavirus-related temporary partial shutdown at the European production plants in April and increasing travel restrictions in the service and spare parts business. The export ratio amounted to 69% (previous year: 71%).

Order backlog: five months' reach

On September 30, 2020, the order backlog amounted to EUR 983.7 million (31.12.2019: EUR 1,197.4 million) - an average order backlog of five months. The individual production companies have different levels of capacity utilization.

Stable earnings, financial and asset situation

DMG MORI was able to successfully limit the negative effects of the crisis with quickly introduced and consistently implemented measures to reduce costs, increase flexibility and secure liquidity. With the existing syndicated credit line, the reduced balance sheet total and further strengthening of the equity ratio, DMG MORI has a stable financial foundation, a healthy balance sheet structure and a solid liquidity reserve. Free cash flow in the third quarter was positive at EUR 13.9 million (previous year: EUR 33.1 million). In the first nine months, free cash flow amounted to minus 65.8 million euros (previous year: 115.0 million euros). With the existing syndicated credit line of EUR 500.0 million, which was extended prematurely at improved conditions, DMG MORI has sufficient financial resources.

Slight reduction in the number of employees

On September 30, 2020, the Group employed 6,882 people, including 287 trainees (December 31, 2019: 7,245). The number of employees therefore decreased by 363 compared to the end of 2019. At the end of the third quarter, 4,333 employees (62%) worked at our German companies and 2,549 employees (38%) at our foreign companies. Personnel expenses decreased to 373.3 million euros (previous year: 449.5 million euros).

Research and development important now

Innovation is the only way out of the crisis. This is why DMG MORI is keeping its development budget stable at a high level. Expenditure on research and development amounted to 49.2 million euros in the first nine months (previous year: 52.0 million euros). We are driving forward our future fields of automation, digitalization, additive manufacturing, DMG MORI Qualified Products (DMQP), sustainability and technological excellence with dynamism and excellence. At the "Global Development Summit", over 500 international experts from the "Global One Company" developed new product ideas digitally for the first time.

"Green production" from 2021

DMG Mori has had a balanced_{CO2 balance}(company carbon footprint) since May 2020. From January 2021, DMG Mori will also be focusing on green production worldwide: From raw materials to delivery to the customer, all machines along the entire value chain will be produced completely_CO2-neutral in the future. This makes DMG Mori one of the first industrial companies in the world to have a climate-neutral product carbon footprint.

DMG Mori's automation portfolio is also innovative and comprehensive: Robo2Go has also been available for milling machines since October. This flexible automation solution can be used easily via CELOS without any knowledge of robot programming and is ideal for small and medium batch sizes. The new monoBLOCK Excellence Factory went into operation at the beginning of September. Up to 1,000 machine tools per year can now be produced digitally and fully automatically. At the heart of the 4,000 square meter, ultra-modern cycle assembly line in Pfronten is a driverless AGV (Automated Guided Vehicles) transport system. DMG Mori is setting new standards in the machine tool industry with this world's most modern assembly line.

The DMF 200|8 from the new moving column series was recently presented as a world premiere: It sets new standards in high-precision and productive five-axis machining of structural components and mold inserts up to 2,300 millimeters long.

Outlook for 2020: significant declines in incoming orders, sales, earnings and free cash flow

The global economy and the global market for machine tools are in a deep recession as a result of the ongoing global spread of the coronavirus. For the first time since 2003, the global market for machine tools will decline for two years in a row. In their latest publication from October, the German Machine Tool Builders' Association (VDW) and the British economic research institute Oxford Economics assume that global consumption will once again fall significantly in 2020 by 23.2 percent to 55.1 billion euros (previous year: minus 8.4 percent; 71.8 billion euros).

The duration and consequences of the coronavirus pandemic are still not fully foreseeable, neither for the economy as a whole nor for the machine tool industry. DMG Mori expects a significant year-on-year decline in order intake, sales, earnings and free cash flow in the 2020 financial year due to the completely changed global economic conditions. The cost-cutting and flexibilization measures introduced at an early stage in all areas support DMG Mori's performance and profitability.

The company is therefore slightly raising its 2020 forecast for turnover and earnings: Order intake of around 1.6 billion euros is still planned for the year as a whole. Turnover is now expected to be around 1.75 billion euros (previously: around 1.65 billion euros). EBIT is expected to amount to around 75 million euros after previously around 60 million euros. DMG Mori continues to expect a balanced free cash flow. This forecast for 2020 assumes that there will be no second lockdown due to the coronavirus pandemic in the further course of business.