In This Article:
Release Date: May 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Duerr AG (DUERF) had a solid start in 2025 with a robust order intake of 1.1 billion, in line with expectations.
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Net income improved by 40% to 17 million due to lower extraordinary effects and better interest results.
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Free cash flow was slightly positive, showcasing effective working capital management.
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The automotive division saw an 8% growth in sales revenues, driven by higher equipment sales.
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The woodworking division improved its margin before extraordinaries by almost 100 basis points due to cost savings and a higher service share.
Negative Points
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Order intake declined by 21% due to a strong base effect from a large partnership project in the previous year.
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Sales revenues were stable but impacted by a negative effect from the deconsolidation of 15 million.
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The industrial automation division faced weak orders for battery production equipment due to investment delays and competition.
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Higher R&D expenses for the lithium-ion battery business negatively impacted margins.
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There are uncertainties regarding the impact of current trade and tariff discussions on the overall economic environment.
Q & A Highlights
Q: How do you see the development of capacity utilization in the industrial automation business throughout the year, and what financial impact did it have in the first quarter? A: (CEO) We are experiencing temporary underutilization in the industrial automation business, but we are sticking with our guidance for the division. We are working on improving margins and increasing efficiency. The recovery in order intake will help avoid underutilization and support our guidance for the year.
Q: Can you quantify the higher R&D expenses for the battery business, and what are the prospects and demand pipeline for battery equipment? A: (CEO) The R&D expenses for our lithium-ion battery business increased by approximately 2 to 3 million compared to last year. We received a large order at the end of last year, which provides a good backlog. The business is driven by large orders, and we will monitor market developments and project awards.
Q: If customers in the automotive business continue to delay projects, would it pose a risk to your divisional or group guidance? A: (CEO) From today's perspective, we do not see a risk to our guidance. The pipeline consists of smaller but sufficient projects. We are confident in achieving our guidance unless there is a significant deterioration in the situation where customers completely stop ordering.