New orders in Germany fell by 3.4% to 43.2 million euros (previous year: 44.7 million euros) and abroad by 15.8% to 83.8 million euros (previous year: 99.5 million euros). The order backlog amounted to EUR 150.8 million on the reporting date of March 31, 2024 compared to EUR 130.5 million at the end of December 2023. The decline in demand continued in April 2024.

First quarter weaker than 2023

In the first three months of 2024, Hermle Group sales fell by 15.2% to € 106.6 million (previous year: € 125.7 million) compared to the exceptionally strong first quarter of 2023, which benefited from the high order backlog of the previous year. The business volume in Germany decreased by 19.3% to 38.5 million euros (previous year: 47.7 million euros) and abroad by 12.7% to 68.1 million euros (previous year: 78.0 million euros).

As forecast, the operating result fell disproportionately. In addition to lower capacity utilization, this was also due to a noticeable increase in personnel costs. The number of employees in the Hermle Group increased to 1,521 as of March 31, 2024, compared to 1,511 at the end of 2023 and 1,415 on the previous year's reporting date. New hires were made in the reporting period, particularly in the Automation division and in International Sales and Service.

Hermle's investments in the first quarter of 2024 were significantly above the previous year's level, mainly relating to the expansion of the Zimmern production site. Thanks to its solid financial and asset position - at the end of March, the company still had an equity ratio of more than 70% - Hermle can implement the capacity expansion measures required in the medium term as planned without borrowing, even in the current difficult environment.

In-house exhibition with more than 2,500 visitors

The fact that demand for Hermle products is likely to remain high in the medium term was demonstrated at this year's in-house exhibition, which opened its doors for four days at the end of April at the company's headquarters in Gosheim. More than 2,500 visitors from around 1,100 companies from over 30 countries came to find out about Hermle's range of products and innovations. The focus of interest was on the new Generation 2 models of Hermle machining centers, equipped with the latest hardware and software technology, as well as various automation solutions with the company's own digitalization modules for cost-effective production. Hermle is thus also supporting its customers in coping with the growing shortage of skilled workers.