Trumpf sees light at the end of the tunnel

Oct. 14, 2020
Trumpf sales revenues down 8 percent after crisis year, but EUV and Electronics hit double-digit growth for return of 8.9 per cent, almost at last year's level, with indications that the economic downturn is coming to an end.

On June 30, 2020 the Trumpf Group recorded an end of fiscal 2019/2020 decline in sales revenues of 8 percent to 3.5 billion euros (fiscal year 2018/19 revenues of 3.8 billion euros. The order intake fell to 3.3 billion euros (fiscal year 2018/19: 3.7 billion euros), representing a drop of 11 percent. However, the organization benefited from its high order backlog, with sales revenues exceeding incoming orders by 210 million euros. 

At 309 million euros, the Group's operating earnings before taxes (EBIT) also declined in line with sales and fell by 11.5 percent compared to the fiscal year 2018/19 (349 million euros). However, thanks to the consistent implementation of its “Koyer” earnings improvement program, Trumpf was able to significantly dampen the decline in the EBIT margin. Due to the scaling back of capital expenditure and non-personnel costs as well as efficiency improvements, the company achieved a good overall return of 8.9 percent (previous year: 9.2 percent).Trump also responded to the consequences of the coronavirus pandemic in spring 2020 through further cost-cutting measures to futher cushion the Group's declining returns.

“We have been experiencing a slowdown in the global economy since fall 2018. Coronavirus has further intensified the decline – as a crisis within a crisis. However, our sales revenues fell much less than in the mechanical engineering sector as a whole. In addition, consistent cost management allowed us to keep the return almost at the previous year's level,” explains Nicola Leibinger-Kammüller, Chair of the Group Management Board of Trumpf. “The decline in sales revenues and new orders was halted in the first three months. We see cautious signs that the economic downturn is coming to an end, although there is still no upturn,” Leibinger-Kammüller continues commenting on the outlook for fiscal 2020/21, which started on July 1.

EUV and Electronics strong again

Once again, the Ditzingen-based EUV business field was the driving force behind this positive result. Trumpf supplies its Dutch customer ASML with special lasers for systems that use extreme ultraviolet radiation to expose surfaces of chips for the computer industry. Here, Trumpf once again increased sales revenues by 19 percent from 388 million euros in the previous year to 460 million euros. As a result, EUV contributed almost as much to Group sales as Trumpf's entire US subsidiary. 

Electronics, which is located in Freiburg at TRUMPF Hüttinger and in Warsaw, again exceeded expectations with sales revenues of 230 million euros. This represents an increase of 15 percent over the previous year (199 million euros). The main reasons for this were the increasing demand for the solar industry in China and the semiconductor industry in the US and Japan.

Source: Trumpf Press Release

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