Günther Beck Management Board Finances, Information Processing | Hermle USA, Inc.
Günther Beck Management Board Finances, Information Processing | Hermle USA, Inc.
Maschinenfabrik Berthold HERMLE AG, a German machine tool and automation company, reported a decline in turnover and earnings for 2024. The company attributed this to weak economic conditions affecting the industry. According to provisional calculations, incoming orders fell by approximately 8% to €457 million from the previous year's €495 million. Foreign demand was more stable compared to domestic demand, allowing HERMLE to outperform the industry average.
The company's unaudited figures show that its turnover was around €488 million, down from €532 million in the previous year. Growth was particularly noted in non-European markets, and the service business also provided stability due to an increase in installed automation solutions.
HERMLE's operating result (EBIT) dropped to €86 million from approximately €116 million last year. This decrease was primarily due to lower capacity utilization along with increased regulatory expenses, competitive pressure, rising staff costs, wage increases, and high sickness absence rates.
The Management Board has recommended a dividend of €10 per ordinary share and €10.05 per preference share for 2024 at the upcoming Annual General Meeting on July 2, 2025. This includes an unchanged basic dividend but a reduced bonus compared to last year.
Looking ahead, HERMLE expressed uncertainty about its forecast for 2025 given current challenges and risks. They expect Group turnover could decline by nearly 10%, with a worst-case scenario predicting a drop of over 20%. Earnings before interest and taxes (EBIT) are anticipated to fall by at least 40%, potentially up to 90% under unfavorable conditions.
One significant risk is potential tariff increases by the new U.S. President against European manufacturers which could affect demand for machine tools in Europe. Despite these challenges, HERMLE remains optimistic about long-term global demand for high-performance machine tools due to their strong position in automation and machining sectors.
HERMLE plans to release its complete audited figures for 2024 at the end of April 2025.
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