Milwaukee South News

Maschinenfabrik Berthold HERMLE AG faced challenges in 2024 due to uncertain economic conditions, as reflected in its annual financial statements. The company saw a decline in orders received, turnover, and earnings compared to the previous year. Orders fell by 7.8% to €456.2 million, with domestic orders decreasing by 9.3% and overseas orders dropping by 6.9%. Despite these challenges, HERMLE benefited from strong demand for automated solutions early in the year.

Turnover for the HERMLE Group decreased by 8.3% to €487.9 million, with international sales showing more resilience than domestic sales. This trend aligns with HERMLE's strategy of international expansion over recent years, which has seen new subsidiaries established in several countries including Mexico and China.

The company's earnings were significantly impacted by reduced capacity utilization and higher staff costs due to workforce expansion and legal regulations leading to increased unproductive overtime. The operating result (EBIT) fell to €85.3 million from €115.8 million the previous year.

HERMLE maintained a solid financial position despite these setbacks, reporting an operating cash flow of €80.7 million and liquid funds of €107.4 million at the end of 2024. The company continued its investment program focusing on new facilities and technology development.

Employment at HERMLE increased with the addition of 92 employees during the period under review, bringing total employment to 1,603 people including apprentices and cooperative university students.

Looking ahead to 2025, HERMLE expects significant declines in turnover and earnings due to ongoing economic uncertainties including potential U.S tariffs on European manufacturers.

Despite current industry challenges, HERMLE remains optimistic about medium-term demand for machine tools and automated systems thanks to its adaptable production solutions.

The full annual financial statements are available on HERMLE's website: www.hermle.de