The company's earnings performance, which kept pace with the increase in sales in operational terms, was impacted by start-up costs for two future projects and the absence of high earnings contributions from one-off, large international orders in the previous year. At EUR 99.0 million, the Group's operating result (earnings before interest and taxes, EBIT) in 2017 was nevertheless almost on a par with the 2016 figure of EUR 99.8 million. Earnings before taxes amounted to EUR 99.4 million (previous year: EUR 100.3 million). This results in a gross sales margin of 24.7% (previous year: 25.4%). After deduction of taxes, consolidated net profit for the year was almost stable at EUR 73.3 million (previous year: EUR 73.8 million).

The net profit of the individual company Hermle AG increased to € 69.3 million in the reporting year (previous year: € 64.6 million) and the balance sheet profit including the release of retained earnings to € 75.4 million (previous year: € 64.1 million). The Management Board and Supervisory Board will propose to the Annual General Meeting on July 4, 2018 that a stable dividend of EUR 0.80 per ordinary share and EUR 0.85 per preference share, an unchanged bonus of EUR 12.00 per share plus a one-off special bonus of EUR 2.20 per share be paid out. This would increase the distribution per preference share to EUR 15.05 (previous year: EUR 12.85).

The Hermle Group's financial and asset position also remained very solid in 2017: the operating cash flow increased slightly to € 81.1 million (previous year: € 80.8 million) and the equity ratio at the end of the year was 71.8% (previous year: 74.3%). Investments across the Group increased again to EUR 18.5 million (previous year: EUR 16.4 million). They related to the two future-oriented projects at the new site in Zimmern ob Rottweil and at the company headquarters in Gosheim. A state-of-the-art mineral casting production facility for machine base frames and other components was built on the new site in Zimmern and went into operation in mid-2017. In Gosheim, the strategically important machining production area was expanded and modernized, which will be completed this year.

As at December 31, 2017, the Hermle Group employed 1,086 people (previous year: 1,018). New hires were mainly made for the Zimmern site. The workforce also grew due to the hiring of trainees who successfully completed their training and the corresponding filling of vacant training positions. The number of trainees increased from 95 to 96 young people. Due to the good business development and their strong performance in the past year, the employees of Hermle AG are to receive a bonus of 4,500 euros per employee following the dividend payment.

With the high order backlog at the turn of the year and the expanded capacities resulting from the future projects, Hermle has a solid basis for further growth. For 2018, the company therefore anticipates Group-wide sales and earnings growth in the mid to upper single-digit percentage range. However, the increase in earnings is likely to be slightly lower than in sales due to the collective wage increase, expected price increases for raw materials and the weaker US dollar. In the first few weeks of the current year, Hermle's business developed very well in line with planning. The company will publish detailed information on the first quarter on May 15, 2018. kp