Franz Xaver Bernhard Management Board Sales, Research and Development | Hermle USA, Inc.
Franz Xaver Bernhard Management Board Sales, Research and Development | Hermle USA, Inc.
Maschinenfabrik Berthold HERMLE AG has reported a challenging start to 2025, with business operations impacted by uncertain conditions. The Executive Board revealed at the shareholders' meeting that incoming orders fell by 7% year-on-year to €193.3 million, aligning with a similar decline in the German machine tool industry as noted by the German Machine Tool Builders' Association.
The Executive Board cited changing customs and trade policies and unclear foreign policy from the USA as primary reasons for weak demand. In Germany, investment hesitancy is compounded by reliance on exports and changes in the automotive sector. Domestic new orders dropped significantly by 29% to €52.9 million, while international orders rose by 5% to €140.4 million.
HERMLE's turnover decreased by 6% to €178.6 million during January to May 2025, showing regional disparities: domestic sales fell by 29%, whereas international sales increased by 7%. The company attributes this growth abroad partly to US customers anticipating tariff hikes.
Operating profit saw a sharper decline than turnover due to lower capacity utilization and intensified competition. Measures such as reducing flexitime accounts and short-time working were implemented but could not fully offset these challenges.
Despite no signs of recovery in demand, HERMLE maintains its forecast for a significant turnover decline in 2025, potentially up to 25%, with operating profit expected to fall even more sharply.
Shareholders approved a dividend of €11.00 per ordinary share and €11.05 per preference share for the financial year 2024, resulting in a dividend yield of 6.7% for preference shares based on last year's share price. Employees will receive bonuses linked to this distribution.
At the end of May 2025, HERMLE employed 1,605 people across its group.
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