Dürr Aktiengesellschaft / Key word(s): Change in Forecast
Dürr AG: Earnings target for 2024 revised, forecast for 2023 confirmed
Dürr AG – WKN 556520 / ISIN DE0005565204
Bietigheim-Bissingen, October 19, 2023 — Based on the current assessment by the Board of Management, the Dürr Group will not achieve its target of an 8% EBIT margin before extraordinary effects in 2024. The reason for this is the strong decline in order intake at HOMAG (Jan. to Sept. 2023: -32%) due to the continued downturn in the market for woodworking machinery. The cyclical order decline has recently been accompanied by lower gross margins in new business and is likely to lead to a drop in sales of around 15% in 2024, along with capacity underutilization. The Group’s new EBIT margin target for 2024 is 4.5 to 6.0% before extraordinary effects, with sales growth of 5 to 10%. The achievement of the 8% target margin previously forecast for 2024 requires business at HOMAG to recover and is expected for 2026 at the earliest. The forecast for the EBIT margin before extraordinary effects for 2023 (6.0 to 7.0%) is confirmed.
Additional measures are currently being prepared for HOMAG to make sure that the 2024 EBIT margin before extraordinary effects will not drop below 2%. In addition to the increased use of flexible working time instruments, management is also planning to reduce capacity at HOMAG. Talks with the employee representatives will be held over the coming weeks. Concrete information will be announced soon.
The measures are intended to improve HOMAG’s earnings resilience, adjust the cost structure to the lower volume and the cyclicality of the business, and support future profitable growth. From today’s perspective, demand is expected to pick up from the end of 2024. Based on the measures, the Board of Management still sees an EBIT margin potential for HOMAG of 10% in a stable market environment.
The other divisions are expected to continue their positive margin development in the coming quarters. However, it will not be possible to fully compensate for HOMAG’s decline in earnings expected for 2024.
The Dürr Group will publish the full figures for the third quarter and the first nine months of 2023 on November 9, 2023.
End of Inside Information
Information and Explanation of the Issuer to this announcement:
The Dürr Group is one of the world's leading mechanical and plant engineering firms with extensive expertise in automation, digitalization and energy efficiency. Its products, systems and services enable highly efficient and sustainable manufacturing processes in different industries. The Dürr Group primarily supplies the automotive industry, producers of furniture and timber houses as well as the chemical, pharmaceutical, medical devices and electrical engineering sectors. It generated sales of €4.3 billion in 2022. The company has over 20,000 employees and 140 business locations in 32 countries. The Dürr Group operates in the market with the brands Dürr, Schenck and HOMAG and with five divisions:
This publication has been prepared independently by Dürr AG/Dürr group. It may contain statements which address such key issues as strategy, future financial results, events, competitive positions and product developments. Such forward-looking statements are subject to a number of risks, uncertainties and other factors, including, but not limited to those described in disclosures of Dürr AG, in particular in the chapter “Risks” in the annual report of Dürr AG. Should one or more of these risks, uncertainties and other factors materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results, performances or achievements of the Dürr group may vary materially from those described in the relevant forward-looking statements. These statements may be identified by words such as “expect,” “want,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project” or words of similar meaning. Dürr AG neither intends, nor assumes any obligation, to update or revise its forward-looking statements regularly in light of developments which differ from those anticipated. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies.
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 financial glossary on the web page.
|Listed:||Regulated Market in Frankfurt (Prime Standard), Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Tradegate Exchange|
|EQS News ID:||1753265|
|End of Announcement||EQS News Service|