DÜRR AG
DGAP-Ad-hoc: Dürr Aktiengesellschaft / Key word(s): Change in Forecast/Half Year Results
Dürr Group increases annual forecast and looks set to achieve record order intake
26-Jul-2021 / 17:58 CET/CEST
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Dürr Group increases annual forecast and looks set to achieve record order intake
Dürr AG - WKN 556520 / ISIN DE0005565204
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 EUR4,000 to 4,200 million (previous forecast: 3,600 to
3,900). As things stand today, sales are set to reach EUR3,600 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 EUR50 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 EUR2,110.9 million in the first half of the year according to preliminary
figures.
In the second quarter, the Dürr Group saw its business gaining further momentum. Earnings also continued to increase.
This was mainly the result of the consistently strong service business and the efficiency and capacity measures of the
previous year. The operating EBIT margin reached 4.8% in the first half of the year, with 5.9% in the second quarter
exceeding the full-year target range. Free cash flow increased to EUR72.8 million in the first half of the year and was
marked by solid prepayments following high order intake. At EUR1,632.8 million, sales development was still moderate, but
already picking up slightly in the second quarter (EUR843.0 million). As the year progresses, further significant
improvements are expected. One reason for this is the record level of orders on hand worth EUR3,175.1 million.
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 EUR886.7 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 EUR1,550 to 1,650 million for order intake (previously
1,170 to 1,270), EUR1,250 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
For 2022, the Board of Management expects sales and operating EBIT margin to exceed the pre-crisis level of 2019
(EUR3,921.5 million and 6.7%, respectively). The medium-term target of an EBIT margin of at least 8% (after extraordinary
effects) is set to be achieved by 2023 or 2024 at the latest.
The full financial report for the first half of 2021 will be published, as announced, on August 5, 2021. A conference
call with the Board of Management will be held for investors and press representatives on July 27 at 2pm (CEST). The
conference call previously scheduled for August 5 has been canceled.
Dürr Group forecast for 2021
2020 actual Previous forecast 2021 New forecast 2021 (July 26, 2021)
Order intake EUR million 3,283.2 3,600 to 3,900 4,000 to 4,200
Sales EUR million 3,324.8 3,450 to 3,650 3,600 to 3,800
EBIT margin % 0.3 3.3 to 4.3 4.1 to 5.1
EBIT margin before extraordinary effects % 3.0 4.2 to 5.2 5.0 to 6.0
Earnings after tax EUR million -13.9 40 to 90 70 to 120
ROCE % 1.1 9 to 13 12 to 16
Free cash flow EUR million 110.7 -50 to 0 50 to 100
Net financial status (Dec. 31) EUR million -49.0 -225 to -175 -175 to -125
Capital spending (net of acquisitions)^ EUR million 76.4 2.5 to 3.5% 2.5 to 3.5%
of sales of sales First half and second quarter of 2021 (preliminary figures)
Dürr Group
EUR million H1 2021 H1 2020 change Q2 2021 Q2 2020 change
Order intake 2,110.9 1,483.0 42.3% 1,078.7 644.8 67.3%
Orders on hand (June 30) 3,175.1 2,478.8 28.1% 3,175.1 2,478.8 28.1%
Sales 1,632.8 1,615.2 1.1% 843.0 772.6 9.1%
Gross profit^1 381.1 295.6 28.9% 203.0 118.7 71.0%
R&D costs 59.1 54.7 8.0% 30.4 26.6 14.2%
EBITDA 121.2 63.4 91.2% 67.7 11.6 481.1%
EBIT 62.0 6.6 841.0% 37.9 -16.4 -
EBIT before extraordinary effects^2 78.8 23.7 232.6% 49.6 -8.9 -
Earnings after tax 31.7 -3.0 - 23.2 -16.3 -
Gross margin (%) 23.3 18.3 +5.0 pp 24.1 15.4 +8.7 pp
EBIT margin (%) 3.8 0.4 +3.4 pp 4.5 -2.1 +6.6 pp
EBIT margin before extraordinary effects (%) 4.8 1.5 +3.4 pp 5.9 -1.2 +7.0 pp
Cash flow from operating activities 140.1 106.0 32.2% 48.2 37.3 29.4%
Free cash flow 72.8 44.3 64.1% 7.0 -1.5 -
Capital spending (net of acquisitions) 44.0 37.2 18.1% 24.6 17.6 39.6%
Total assets (June 30) 3,975.3 3,811.1 4.3% 3,975.3 3,811.1 4.3%
Equity (incl. non-controlling interests) (June 30) 928.9 956.1 -2.9% 928.9 956.1 -2.9%
Equity ratio (June 30) (%) 23.4 25.1 -1.7 pp 23.4 25.1 -1.7 pp
ROCE^3 (%) 11.5 1.2 +10.3 pp 14.1 -6.0 +20.1 pp
Net financial status (June 30) -119.9 -120.9 +0.8% -119.9 -120.9 +0.8%
Net working capital (June 30) 387.2 410.1 -5.6% 387.2 410.1 -5.6%
Employees (June 30) 17,114 16,283 5.1% 17,114 16,283 5.1%
Paint and Final Assembly Systems
EUR million H1 2021 H1 2020 change Q2 2021 Q2 2020 change
Order intake 658.0 490.2 34.2% 356.9 240.3 48.5%
Sales 488.3 574.6 -15.0% 241.1 277.4 -13.1%
EBIT 8.6 14.2 -39.8% 4.0 3.7 7.4%
Employees (June 30) 4,923 4,428 11.2% 4,923 4,428 11.2%
Application Technology
EUR million H1 2021 H1 2020 change Q2 2021 Q2 2020 change
Order intake 251.2 193.7 29.7% 122.1 77.0 58.7%
Sales 218.3 218.6 -0.1% 111.8 97.2 15.0%
EBIT 13.9 -1.1 - 7.6 -6.7 -
Employees (June 30) 2,025 2,228 -9.1% 2,025 2,228 -9.1%
Clean Technology Systems
EUR million H1 2021 H1 2020 change Q2 2021 Q2 2020 change (MORE TO FOLLOW) Dow Jones Newswires
July 26, 2021 11:58 ET (15:58 GMT)
