Trumpf again reports ‘declining’ sales and order intake in latest financial results

17 Oct 2024

CEO Leibinger-Kammüller blames “weak global economy, ongoing geopolitical uncertainties, and intensifying competition”.

Trumpf Group has reported a decline in sales of 3.6 percent to €5.2 billion at the close of the fiscal year 2023/24 (FY 23/24) on June 30, 2024 (FY 22/23: €5.4 bn). The order intake fell for the second time in a row to 4.6 billion euros (FY 22/23: €5.1 bn).

This is 10.4 percent less than in the previous year. Operating earnings before interest and taxes fell by €114 m to €501 m as a result of the decline in sales compared to the previous year (€615 m). The EBIT margin fell to 9.7 percent (previous year: 11.5 percent).

Presenting the figures in Ditzingen, Nicola Leibinger-Kammüller, CEO of Trumpf, commented: “The slowing global economy and geopolitical uncertainties led to a significant reluctance to make new investments among customers on all continents in the past fiscal year.

She added, “We felt the effects of tougher competition more than ever before, for instance from Chinese competitors. Looking ahead, we assume that the coming months of the current fiscal year will continue to be characterized by persistently weak demand. Trumpf is countering this economic crisis with clear measures to improve earnings, among other things.”

Markets and divisions

Trumpf’s strongest single market in terms of sales was Germany with €824 m (previous year: €779 m), which corresponds to an increase of 5.8 percent. In the USA, however, sales fell significantly by 11.5 percent to €796 m (previous year: €899 m). In China, the largest Asian market, the company increased sales slightly by 2.2 percent to €615 m (previous year: €602 m).

Considering the business divisions, the Machine Tools division achieved the highest sales at €2.8 bn (previous year: €3 bn). The Laser Technology division recorded declining sales of €1.4 bn (previous year: €1.5 bn). Sales in the Electronics business field, which has not been part of Laser Technology since the FY 23/24 and is reported separately, amounted to €572 m. This corresponds to an increase of 4.8 percent compared to the previous year (€546 m). The EUV business field, also reported separately, achieved sales of €943 m, corresponding to a decrease of 2.9 percent compared to the previous year (€971 m).

Employee numbers up

The number of Trumpf employees increased by around 650 in the reporting period. New jobs were created in the EUV and Electronics business fields in particular. As of reporting date June 30, 2024, the company employed 19,018 people worldwide (previous year: 18,352).

In Germany, the number of employees rose by 4.2 percent to 9,505 (previous year: 9,124). Of these, 6,283 worked at the headquarters in Ditzingen, Gerlingen, Hettingen and Höfingen. In the year under review, 560 young people completed a training course or a co-op work-study program, resulting in a training ratio of 2.9 percent, which was slightly lower than the previous year (3.5 percent).

The number of employees in research and development increased by 8.6 percent to 3,098 (previous year: 2,853). At €530 m, research and development expenses were significantly higher than in the previous year (€476 m). The ratio of R&D expenditure to sales thus increased to 10.3 percent (previous year: 8.9 percent) and remained at a historically high level, well above the industry average, the company stated.