BIETIGHEIM-BISSINGEN (dpa-AFX) - Mechanical engineering company Dürr earned less in the first quarter, partly due to a higher share of sales from less profitable businesses and increased costs. Sales, on the other hand, increased. In addition, incoming orders also continued to rise. In the first three months of the current year, the volume of orders increased by around five percent to a record level of almost 1.5 billion euros. The Group also confirmed its forecast for the current year. In line with the market, the MDax-listed stock fell slightly in the morning.

Sales increased by twelve percent to just over one billion euros, the company announced in Bietigheim-Bissingen on Tuesday. Profit below the line fell by 22 percent to 21 million euros. According to the company, the main reasons for the drop in profit were the sales and project mix, including the declining service share, the higher cost of materials and the payment of the inflation compensation premium for employees in Germany.

The company also pointed out that the previous year's figure included special income of around five million euros in connection with a legal dispute. "In the first quarter, earnings were impacted by seasonal effects. In the further course of the year, we expect a significant margin expansion due to economies of scale, a higher service share and the increased execution of high-margin projects," CEO Jochen Weyrauch said, according to the statement. "In addition, the supply chain situation should continue to ease." He confirmed the 2023 targets.

"The high order volume was mainly driven by strong demand from the auto industry for production technology for electric cars," the statement said. As order intake grew faster than revenue, the order backlog climbed to a high of 4.4 billion euros.

Based on the strong order situation, revenue for the full year is expected to rise to between 4.5 and 4.8 billion euros. In 2022, sales had increased by 22 percent to 4.3 billion euros.

Order intake, on the other hand, is expected to fall to between 4.4 billion euros and 4.8 billion euros, following the 2022 record. By contrast, the company sees the margin measured in terms of adjusted operating profit significantly higher in 2023 - it is expected to improve from 5.4 percent to 6.0 to 7.0 percent. In the previous year, it had still declined slightly. After-tax earnings are expected to increase further.

The figures and the confirmed forecast were received with restraint on the stock exchange. The share lost just under one percent of its value in the morning. In the year to date, the share has been treading water and, at 31.70 euros, is roughly the same price as at the end of 2022, but had climbed almost to 37 euros in February.

Overall, the share price continues to stabilize after falling to less than 20 euros in September last year. However, the share is a long way from the record high of just over 60 euros reached in the fall of 2017./zb/mne/mis