Dürr Aktiengesellschaft / Key word(s): Change in Forecast/Quarter Results
Dürr AG adjusting earnings forecast for 2022, unchanged medium-term goal for EBIT margin of at least 8%
Bietigheim-Bissingen, May 2, 2022 - Dürr AG is adjusting its earnings forecast for 2022 in response to the mounting global supply chain problems in recent weeks. Given protracted cost inflation, renewed lockdowns in China and geopolitical uncertainties, the Board of Management does not expect the supply chain constraints to ease significantly before the end of 2022. By contrast, the forecast for 2022 published in February had assumed a marked improvement in the second half of the year. At the same time, Dürr AG confirms its medium-term target of an EBIT margin of at least 8% in 2023 or 2024, since the current turmoil is only temporary in nature.
The EBIT margin before extraordinary effects is now expected to be in a range of 5.0-6.5% in 2022 instead of the previously projected figure of 6.5-7.5%. In 2021, it had reached 5.6%, coming to 4.9% in the first quarter of 2022. In the second quarter, lockdowns in China will temporarily exert an adverse effect on sales and earnings.
The full-year forecast for order intake, sales and free cash flow for 2022 remains unchanged. In the first quarter of 2022, order intake rose to a record €1,400.5m (up 35.7% on Q1 2021). This was driven by record order intake at HOMAG (€573.8m) and significant growth in automotive business and in environmental technology. The full-year target corridor of €4,100-4,400 million in 2022 remains readily achievable.
Sales climbed by 14.7% to €905.7 million in the first quarter. Despite the temporary adversities in China, further growth and the achievement of the sales target of €3,900-4,200 million are expected for 2022 as a whole.
Free cash flow amounted to €74.8 million in the first quarter and should reach €50-100 million in 2022 as planned. Although net working capital is expected to rise in the further course of the year as a result of the planned growth in sales, customer prepayments should remain strong thanks to the good order situation, while capital spending should reach the lower end of the target corridor (4.0-5.0% of sales).
The following positive currency translation effects were registered in the first quarter of 2022: order intake €+59.7m, sales €+20.8m, EBIT before extraordinary effects €+2.0m.
As things currently stand, the Board of Management is confident that margins will widen significantly in 2023, underpinned by the high order intake and order backlog, the price adjustments implemented and the margin quality of orders on hand. Against this backdrop, the Board of Management is optimistic that the medium-term target for the EBIT margin of at least 8% will be achieved by 2024 at the latest.
The Group's adjusted earnings targets for 2022 are shown in the table below. An adjusted forecast for the divisions is expected to be published together with the half-year figures on August 4, 2022.
Dürr Group forecast for 2022
Q1 2022 (preliminary)
1 Extraordinary effects in Q1 2022: €-0.9 million (including purchase price allocation effects of €-5.1 million), Q1 2021: €-5.2 million
1 Effective January 1, 2022, tooling business was transferred from Woodworking Machinery and Systems to Measuring and Process Systems. Due to this transfer the division sales now also include group internal sales with other divisions. These sales are being eliminated at group level. The previous year's figures were duly adjusted.
Andreas Schaller / Mathias Christen
Corporate Communications & Investor Relations
Phone +49 7142 78-1785 / -1381
Fax +49 7142 78-1716
Information and Explanation of the Issuer to this News:
The Dürr Group is one of the world's leading mechanical and plant engineering firms with extensive expertise in automation and digitalization/Industry 4.0. Its products, systems and services enable highly efficient and resource-saving manufacturing processes in different industries. The Dürr Group supplies sectors like the automotive industry, mechanical engineering, chemical, pharmaceutical, medical technology and woodworking industries. It generated sales of €3.54 billion in 2021. The company has almost 18,000 employees and 120 business locations in 33 countries. The Dürr Group operates in the market with the brands Dürr, Schenck and HOMAG and with five divisions:
- Paint and Final Assembly Systems: paint shops as well as final assembly, testing and filling technology for the automotive industry, assembly and test systems for medical devices
- Application Technology: robot technologies for the automated application of paint, sealants and adhesives
- Clean Technology Systems: air pollution control, noise abatement systems and coating systems for battery electrodes
- Measuring and Process Systems: balancing equipment and diagnostic technology
- Woodworking Machinery and Systems: machinery and equipment for the woodworking industry
Our financial reports, presentations, press releases and ad-hoc releases may include alternative financial metrics. These metrics are not defined in the IFRS (International Financial Reporting Standards). Net assets, financial position and results of operations of the Dürr group should not be assessed solely on the basis of these alternative financial metrics. Under no circumstances do they replace the performance indicators presented in the consolidated financial statements and calculated in accordance with the IFRS. The calculation of alternative financial metrics may vary from company to company despite the use of the same terminology. Further information regarding the alternative financial metrics used at Dürr AG can be found in our glossary on the web page.
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