FRANKFURT (Dow Jones) — After a strong third quarter, the plant manufacturer Dürr has once again raised its forecast for the year. Orders worth 4.8 to 5.1 billion euros are now expected for 2022, compared to 4.4 to 4.7 billion before. This is the second forecast increase this year after August, the company said. The company’s third-quarter figures beat analyst forecasts.
Incoming orders rose by 20.5 percent to 1.3 billion euros in the quarter. Analysts had expected only 1.122 billion euros. Sales were above average with an increase of 24.7 percent to 1.124 billion euros. Improvements in the supply chains had a positive effect here. The EBIT margin before special items improved significantly in the third quarter compared to the previous quarter. At 5.6 percent, it met the target range for the full year (5.0 to 6.5 percent), after previously falling to 3.9 percent due to lockdowns in China.
EBIT reached EUR 55.4 million, an increase of 8.7 percent and better than analysts had expected at EUR 52 million. After taxes, Dürr earned EUR 35.6 million, double the previous year and also above the analyst consensus of EUR 33 million.
In the third quarter, free cash flow tripled year-on-year to EUR 61 million. “We were able to generate a high cash flow from the increasing result, although we invested more than in the previous year. The basis for this was prudent management of net working capital,” said CFO Dietmar Heinrich.
Based on the record order backlog and the slight easing in the supply chains, the positive sales trend should continue in the fourth quarter. Against this background, the Management Board now expects sales in 2022 to reach the upper end of the target corridor of EUR 3.9 to 4.2 billion. The earnings forecast for 2022, which was adjusted in May, is confirmed. After the margin recovery in the third quarter, a further improvement can be expected in the final quarter. Dürr sees the EBIT margin before special items in the lower half of the target corridor of 5.0 to 6.5 percent.
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November 10, 2022 02:19 ET (07:19 GMT)
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