|SMS group in EUR millions1)||2014||2015||2016||2017||2018||2019|
Figures in accordance with International Reporting Standards (IFRS).
1. Including others/consolidation.
2. Year average with apprentices/others.
At EUR 3,154 million, SMS group’s incoming orders in the past business year were EUR 67 million higher than the previous year’s figure (2018: EUR 3,087 million). Overall, we are satisfied with order intake in 2019. At around EUR 3.2 billion, we generated our highest incoming orders since 2014. Our key growth issues service, digitalization and New Horizon confirm our targets in these areas. We therefore slightly outperformed our forecast of stable order intake at the previous year’s level (+2.1%).
Order intake came to EUR 2,913 million in metallurgical plant engineering (previous year: EUR 2,812 million). This corresponds to a volume increase of EUR 101 million against 2018. Order intake in plant business picked up slightly, coming to EUR 2,173 million at the end of the year (previous year: EUR 2,113 million). Our service business continued to enjoy steady growth, reaching EUR 740 million by the year-end (previous year: EUR 698 million).
At elexis, the level of incoming orders generated in the previous year could not be sustained, with booked incoming orders in 2019 coming to EUR 197 million (previous year: EUR 222 million) on account of restrained demand and a number of projects being postponed. The trend of a significant slowdown in demand also continued at Elotherm in the 2019 business year. At EUR 47 million, order intake even declined on the low previous year’s figure (previous year: EUR 56 million).
At EUR 2,935 million, sales generated in the past business year was up by EUR 130 million on the previous year (EUR 2,805 million). Our forecast that sales will rise slightly (+4.4%) was confirmed.
This good performance is thanks to metallurgical plant engineering. Sales came to EUR 2,669 million in the 2019 business year, higher than in the previous year (EUR 2,517 million). Sales generated in plant business improved to EUR 1,956 million (previous year: EUR 1,842 million), with sales in the service business climbing to EUR 713 million (previous year: EUR 675 million).
The regional distribution of the SMS group’s sales was as follows in 2019:
|Western Europe:||29.9% (previous year: 27.3%)|
|North America:||17.8% (previous year: 15.0%)|
|China:||14.2% (previous year: 15.7%)|
|Eastern Europe:||12.0% (previous year: 10.5%)|
|India:||9.1% (previous year: 8.8%)|
|Asia, other:||6.3% (previous year: 8.3%)|
|MENA:||5.1% (previous year: 8.8%)|
|Latin America:||4.6% (previous year: 4.7%)|
|Africa:||1.2% (previous year: 0.8%)|
elexis generated sales of EUR 206 million in the past business year, almost on par with the previous year (EUR 211 million). Sales at Elotherm came to EUR 65 million. The sales trend is negative (previous year: EUR 82 million) on account of weak order intake in the last two years.
As order intake exceeded sales, order backlog totaled EUR 3,850 million (previous year: EUR 3,623 million).
The SMS group employed an average of 13,793 people in the past 2019 business year (previous year: 13,872). This corresponds to another, albeit slight, decrease in the number of employees by 79 people in comparison to the end of the previous year.
The number of employees at elexis/Elotherm was onpar with the previous year’s average figure at 1,563 (previous year: 1,562).
In business year 2019, SMS group generated pre-tax profit of EUR 64 million, which was well above the previous year’s level (EUR 28 million). Thus, our forecast of a significant improvement in earnings before taxes compared to the previous year was entirely borne out.
Cash and cash equivalents were up by EUR 11 million against the previous year to EUR 695 million (previous year: EUR 684 million).
The advance payments received that are customary in the industry are secured by way of bank guarantees. The share of guarantee and borrowing facilities utilized is approximately 45%.
The volume of investments in intangible assets and property, plant and equipment was EUR 39 million (previous year: EUR 38 million). Investments essentially related to the purchase of replacement equipment for mechanical production and to the expansion or replacement of current IT systems, especially for the introduction of Windows 10.
We invested EUR 23 million in other business interests and investment securities (previous year: EUR 55 million). By way of comparison, proceeds from the disposal of financial assets amounted to EUR 17 million (previous year: EUR 18 million).
BALANCE SHEET in EUR thousand
CONSOLIDATED INCOME STATEMENT in EUR thousand