Georg Weber Divisional Director Production P2 | Hermle USA, Inc.
Georg Weber Divisional Director Production P2 | Hermle USA, Inc.
Maschinenfabrik Berthold HERMLE AG has reported a 4.5% decline in group-wide turnover for the first nine months of 2024, compared to the previous year. The company's turnover stood at €363.8 million, down from €380.9 million last year. Despite this decrease, HERMLE's performance was better than the overall German machine tool industry, which saw an 8% drop according to the VDW industry association.
Domestic business volume fell by 3.7% to €135 million, while international business decreased by 4.9% to €228.8 million, resulting in an export quota of 62.9%. The company attributes its resilience to a strong order backlog and growth in service activities and international markets outside Europe.
Incoming orders across the group dropped by 9.9% to €337.1 million during the first three quarters of 2024. Domestically, orders were at €118.8 million and internationally at €218.3 million.
HERMLE maintained a solid financial position with a high level of cash and cash equivalents and an equity ratio of 72.4%. Investments increased significantly during this period as part of a multi-year program aimed at expanding production sites.
The company continues to focus on future projects like converting its product portfolio to Generation 2 and expanding R&D activities despite economic challenges.
HERMLE has also expanded its workforce, including increasing apprenticeships and dual-study students to counteract future skilled worker shortages.
The company anticipates continued or accelerated demand decline due to global political tensions and other economic factors, leading it to introduce production-free days in Q4 2024 and short-time working measures planned for early 2025.
Despite these challenges, HERMLE remains optimistic about its long-term positioning due to its financial stability and strategic initiatives in automation sector growth opportunities.
"Notwithstanding the present economic challenges," states HERMLE, "the company is fundamentally well positioned for the years ahead."
Press contact: Redaktionsbüro tik GmbH, Gabriele Rechinger
Image material: Maschinenfabrik Berthold HERMLE AG
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