Dürr Aktiengesellschaft / Key word(s): Change in Forecast/Half Year Results
Dürr Group increases annual forecast and looks set to achieve record order intake
Bietigheim-Bissingen, July 26, 2021 - The Dürr Group is increasing its forecast for order intake, sales, earnings, and free cash flow in 2021. The reasons for this are the highly dynamic development of order intake in the first six months of the year and the consistently good prospects. Based on the current assessment by the Board of Management, order intake in 2021 is expected to increase to a record level of €4,000 to 4,200 million (previous forecast: 3,600 to 3,900). As things stand today, sales are set to reach €3,600 to 3,800 million (previously 3,450 to 3,650). The forecast for the operating EBIT margin has been raised to between 5.0 and 6.0% (previously: 4.2 to 5.2), and free cash flow is expected to reach €50 to 100 million (previously -50 to 0). The main reason for increasing the forecast is the excellent business performance at HOMAG (Woodworking Machinery and Systems). This greatly contributed to the Dürr Group's order intake reaching a record high of €2,110.9 million in the first half of the year according to preliminary figures.
The most important driver for growth and earnings in the first half of the year was the HOMAG Group with its record order intake of €886.7 million and an operating EBIT margin of 6.0%, and more specifically 7.5% in the second quarter. The annual forecast for HOMAG has been increased and now stands at €1,550 to 1,650 million for order intake (previously 1,170 to 1,270), €1,250 to 1,400 million for sales (previously 1,120 to 1,220), and 6.0 to 7.0% for the operating EBIT margin (previously 4.0 to 5.0).
The high order intake at HOMAG is based on a new investment cycle in business with furniture manufacturers and on the increased demand for production technology for timber houses. In the Dürr Group's automotive business, too, the path to recovery continued with an increased order intake in the second quarter.
Aside from HOMAG, the Measuring and Process Systems division (balancing technology) is also expected to achieve higher earnings than projected. The latter saw the efficiency measures of 2020, among other things, lead to a significant earnings turnaround and an operating EBIT margin of 8.1% in the second quarter. In the full year of 2021, Measuring and Process Systems is now expected to increase its operating EBIT margin to between 7.0 and 8.0% (previously 4.8 to 5.8).
In the second quarter, all other divisions were also able to achieve substantial improvements in their operating EBIT compared to the first quarter. At Paint and Final Assembly Systems as well as at Application Technology, this was the result of the efficiency and capacity measures being implemented as planned, plus a general improvement in capacity utilization following the significant rise in order intake. The Clean Technology Systems division also performed as expected. The annual forecasts for these three divisions have thus been confirmed.
Targets for 2022 and 2023
Dürr Group forecast for 2021
- 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
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.
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26-Jul-2021 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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