TRUMPF Group's 100th anniversary year was extraordinarily successful with sales growing 27% and the order intake again exceeding the $5 billion mark. .PHOTO courtesy TRUMPF.
TRUMPF Group reports that at the close of its fiscal year 2022/23 on June 30, it recorded the highest sales revenues in the company’s 100-year history to date.
Sales of 5.4 billion euros/5.7 billion U.S. dollars were a significant 27% increase over the previous fiscal year.
“Our anniversary year was an extraordinarily successful one for TRUMPF. The growth in sales was due to the general upturn in demand for all TRUMPF products and in particular to the resolution of supply chain problems that led to delivery delays in the previous year,” Nicola Leibinger-Kammüller, CEO of TRUMPF, said at the annual press conference in Ditzingen, Germany. “As a result, we had a high order backlog that we were able to work off. Since spring, however, we have felt a decline in demand in many markets. In view of the difficult overall economic development, I am therefore very cautious about the coming months.”
The order intake again exceeded the 5 billion mark, but at 5.1 billion euros/5.3 billion U.S. dollars fell noticeably short of the previous record level (fiscal 2021/22: 5.6 billion euros/6.3 billion U.S. dollars). It therefore decreased by 8.8 percent. At 615.4 million euros/644.6 million U.S. dollars, the Group’s operating earnings before interest and taxes (EBIT) grew positively by 31.4 percent compared to the previous year (468.4 million euros/528.2 million U.S. dollars). As a result, TRUMPF achieved an EBIT margin of 11.5 percent (previous year: 11.1 percent) despite increased raw material, logistics and personnel costs.
Also, for the first time in company history, the North American subsidiary of the TRUMPF Group, TRUMPF Inc., generated more than 1 billion U.S. dollars in revenue, achieving a record-breaking 1.05 billion U.S. dollars in sales revenues (+33 percent) during the fiscal year ending June 30, 2023. New order intake remained above 1 billion U.S. dollars at 1.01 billion U.S. dollars, building on the record-high level reached in the previous fiscal year (-1.8 percent).
TRUMPF Inc. President & CEO Lutz Labisch added: “Our market outlook for North America remains very positive and is supported by a robust economy, the ongoing trend of reshoring manufacturing to North America, and high investments into strategic technologies such as e-mobility and semiconductors. TRUMPF continues to invest significantly in North America, and we look forward to the expansion projects we have planned for next year. The most notable project is a new Smart Factory for high precision and flexible sheet metal fabrication, which expands our production facility in Farmington, Connecticut.”
TRUMPF’s largest single markets
TRUMPF’s strongest single market in terms of sales was the United States with 899 million euros/942 million U.S. dollars (previous year: 656 million euros/740 million U.S. dollars). Overall sales figures for North America, including Mexico (105 million euros/110 million U.S. dollars) and Canada (81 million euros/85 million U.S. dollars), totaled 1.068 billion euros/1.119 billion U.S. dollars. In Germany, sales increased to 779 million euros/816 million U.S. dollars (previous year: 589 million euros/664 million U.S. dollars).
Looking at the business fields worldwide, the largest share was accounted for by the Machine Tools division with 3.0 billion euros/3.1 billion U.S. dollars, which increased by 32.8 percent compared to the previous year (previous year: 2.3 billion euros/2.6 billion U.S. dollars), followed by the Laser Technology division with 2.1 billion euros/2.2 billion U.S. dollars, which increased by 28 percent (previous year: 1.6 billion euros/1.8 billion U.S. dollars).
The global EUV business again recorded strong growth in sales of 22.2 percent to 971 million euros/1.0 billion U.S. dollars (previous year: 795 million euros/897 million U.S. dollars). TRUMPF’s Electronics division, which is accounted for through Laser Technology, achieved record sales of 546 million euros/572 million U.S. dollars (previous year: 344 million euros/388 million U.S. dollars). This constitutes an increase of 58 percent.
During the reporting period, the number of TRUMPF Group employees increased by nearly 2,000, and with many new jobs created in particular in the growth fields of EUV and Electronics. As of the reporting date on June 30, 2023, the company employed 18,352 people globally (previous year: 16,554).
In the United States, Canada and Mexico, the number of employees working for TRUMPF rose by 5 percent to 1,631 in FY 22/23 (previous year: 1,554).
Investments, acquisitions, and expansions
The number of employees in company-wide research and development increased by 8.8 percent to 2,853 (previous year: 2,623). At 476 million euros/499 million U.S. dollars, R&D expenditures were significantly higher than in the previous year (448 million euros/505 million U.S. dollars).
Over the past fiscal year, TRUMPF’s investments around the world in land, buildings, technical facilities, operating and office equipment increased by 44.7 percent compared to the previous year (218 million euros/246 million U.S. dollars) to a record high of 316 million euros/331 million U.S. dollars.
In February 2023, TRUMPF agreed on a strategic partnership with STOPA, a leading manufacturer of automated storage systems, and has acquired a 25.1 percent stake in the company. Among other things, STOPA supplies automated storage systems for TRUMPF’s Smart Factory solutions, which enable customers to automate the loading and unloading of machines and to network them.