DMG MORI reports increased sales but decreased profit for Q3 2024

November 19, 2024

On November 1, DMG MORI announced its financial results for the third quarter of the fiscal year ending December 2024 (January to September). The company, which applies International Financial Reporting Standards (IFRS), reported a 2.1% year-on-year increase in net sales to 387.96 billion yen. However, operating income fell 15.9% to 30.04 billion yen due to additional costs associated with the implementation of a new ERP (Enterprise Resource Planning) system at its European plants. In addition, the company recorded a one-time loss related to the exclusion of its Russian manufacturing subsidiary from consolidated results, leading to a sharp decline in net income of 97.4% to 660 million yen.

Regarding the full-year outlook, DMG MORI has revised its consolidated order intake forecast to 500 billion yen from the original forecast of 530 billion yen. This adjustment was made because monthly order volumes since August have lost momentum compared to the recovery trend through July. While the net sales forecast remains unchanged, the company lowered its operating profit forecast from 58.5 billion yen to 44 billion yen. Net income was also revised sharply downward from 36 billion yen to 10 billion yen, mainly due to the postponement of an expected insurance claim related to the operations of the Russian subsidiary to the next fiscal year.