Hermle's business performance exceeded expectations in 2022

Hermle's business performance exceeded expectations in 2022
Turnover and result likely to increase by about 26% or 33%
Incoming orders achieved new record high of roughly €m 534
Management Board recommends that the Supervisory Board proposes an increased dividend distribution

Gosheim, 22 March 2023 – Maschinenfabrik Berthold Hermle AG performed much better than expected in the 2022 financial year. Compared with the corresponding period of the previous year, the Group turnover of the southern German machine tool and automation specialist rose, according to, as yet, unaudited provisional figures, by around 26% to approximately €m 474 (previous year: €m 376), with international sales slightly surpassing domestic sales. On a provisional basis, the Hermle Group achieved an operating result increase of roughly 33%, reaching around €m 99 (previous year: €m 74.6). In November 2022, the company announced a turnover increase of 20% and a disproportionately low increase in earnings. 

The reason for the improved performance was a surprisingly dynamic development of business activities in the final weeks of 2022. The supply chain disruptions, which were noticeable throughout the year, eased somewhat at the end of the reporting period. As a result, Hermle received essential supplier materials just in time to deliver more machines than planned before the turn of the year. The pleasingly strong level of sales of demonstration machines also led to additional turnover. Furthermore, the company was again able to better utilise production capacities in the last two months due to a distinct reduction in the high sickness absence rate. These factors had a positive impact on the results of operations. In addition, there was a positive effect from the receipt of longer outstanding, unsecured accounts receivable. 

Based on the very satisfactory performance, the Management Board today recommended that the Supervisory Board propose an increase in the dividend for the 2022 financial year to the Annual General Meeting on 5 July 2023. The plan is for the shareholders to receive an unchanged basic dividend of € 0.80 per ordinary share and € 0.85 per preference share plus a higher bonus of € 10.20 in each case (previous year: € 8.20). Hermle employees in Germany are to receive a bonus based on the dividend amount. 

According to provisional calculations, incoming orders at Hermle achieved a new record high of about €m 534 in 2022 (previous year: €m 439.1). Demand was equally high domestically and internationally in 2022, especially for fully customised automation solutions. In this increasingly crucial sector, driven by the current shortage of skilled workers across almost all customer industries, Hermle holds a highly advantageous market position, courtesy of its continuously expanding portfolio of automation and digitalisation modules. The company also benefited from its high delivery capacity: The unpredictable supply chain disruptions that were observed throughout the year could be compensated for by internal measures for the most part, although there was an above-average sickness absence rate throughout the Hermle workforce due to COVID-19 and other respiratory illnesses. The orders on hand of the Hermle Group increased significantly to around €m 168 at the end of 2022, compared to the same reporting date in the previous year (€m 107.9). 

Demand for Hermle machining centres and automation solutions initially remained high at the beginning of 2023. The outlook for further developments remains highly uncertain, primarily due to factors such as the Ukraine war, geopolitical tensions between China and the USA, potential ongoing price increases, supply chains disruptions and the ongoing banking crisis. These factors collectively pose significant risks to the overall economic trajectory. 

In the long term, Hermle continues to envisage growing demand for machine tools and automation solutions. Therefore, the company plans to expand capacities at its two locations in Gosheim and Zimmern ob Rottweil in the next few years. 

Hermle will probably publish comprehensive figures on the 2022 financial year as well as a forecast for 2023 at the end of April 2023.

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