DMG Mori Reports Strong First-Half Results
DMG Mori reports a 32% increase in first-half net profit, along with a rise in shares and revenue. The company sees strong demand in sectors such as aerospace and medical.
DMG Mori, the Japanese machine-tool maker, experienced a surge in its shares on Friday morning following the announcement of a 32% increase in first-half net profit. The company also raised its full-year earnings guidance, highlighting robust orders as the main driver.
DMG Mori reported a net profit of ¥14.91 billion ($104.6 million) for the six months ended June 30, compared to ¥11.30 billion in the same period last year. This significant growth contributed to a rise in the company's shares, which were up 8.4% at ¥2,540.0. Earlier in the day, the shares had climbed as high as 9.2%.
The machine-tool maker also showcased a substantial increase in first-half revenue, which rose by 14% compared to the previous year, reaching ¥249.54 billion. Despite a 7.9% decline in orders to ¥275.8 billion, the company explained that this decrease was smaller than anticipated due to an increase in unit prices. DMG Mori reported stronger-than-expected demand in Europe but weaker demand in Japan.
The order backlog at the end of June experienced growth, reaching ¥282.0 billion from ¥254.0 billion at the end of December 2022. This increase can be attributed to strong demand from sectors such as aerospace, medical, energy, and electric vehicles.
Buoyed by their successful first half, DMG Mori raised its earnings projections for 2023. The company now predicts an 11% increase in revenue to ¥525.00 billion and a 32% increase in net profit to ¥33.50 billion.