Trumpf Laser: Fall in sales and challenges for the future!

Trumpf Laser: Fall in sales and challenges for the future!

Trumpf, the renowned machine tool manufacturer and laser specialist, recently published alarming business figures. Sales fell by more than 16 percent, from around 5.2 billion euros to 4.3 billion euros. Order intake has also experienced a significant decline. Earnings before interest and taxes (EBIT) fell dramatically from 500 million euros to just 50 million euros. In the area of ​​laser technology, the decline was almost ten percent.

Björn Dymke, Managing Director of Trumpf Laser, describes the current situation as extremely challenging and points out that long-term planning is currently not possible. The company works with flexible scenarios in order to be able to react to constantly changing conditions. Dymke assumes that the problem will be long-lasting and complex, caused by factors such as the corona pandemic, the war in Ukraine, high energy prices, US tariff policy and Chinese export restrictions.

Economic challenges

Customers' investment security has fallen sharply; many companies still work with outdated machines. This uncertainty is further compounded by current tariffs, particularly in the context of US policy. While Trumpf is less directly affected by tariffs because the company also produces in the USA, tariffs on aluminum and steel entail additional bureaucratic burdens.

Competition from Chinese manufacturers is also increasing. These companies are supported by government subsidies, which makes it more difficult for German mechanical engineering companies to maintain their place in the market. However, Dymke sees advantages for German manufacturers in the accuracy and customer-friendly service they can offer.

Global market conditions

The TRUMPF Group recorded a decline in sales of 3.6% to 5.2 billion euros in the 2023/24 financial year, which represents a decline compared to the previous year (5.4 billion euros). Order intake fell by 10.4% to 4.6 billion euros, and operating profit fell by 114 million euros to 501 million euros. The EBIT margin fell from 11.5% to 9.7%.

In Germany, however, sales increased by 5.8% to 824 million euros, making the country the company's strongest single market. However, in the USA there was a decline in sales of 11.5% to 796 million euros, while in China there was a moderate increase of 2.2% to 615 million euros.

The machine tool division remains the strongest area with sales of 2.8 billion euros, although there was also a decline here compared to the previous year. In contrast, electronics recorded sales of 572 million euros, which corresponds to an increase of 4.8%.

Future outlook

Trumpf has increased its global workforce to around 19,018, an increase of 650 employees compared to the previous year. In Germany there was also an increase of 4.2% to 9,505 employees. In addition, the research and development area recorded pleasing growth, with 3,098 employees, which corresponds to an increase of 8.6%. Research and development expenses rose to 530 million euros, which resulted in an increase in the development cost ratio to 10.3%.

In view of this challenging and dynamic market situation, Dymke announces that the company must continue to be innovative and competitive. On average, one patent application is filed every day, underscoring Trumpf's efforts to develop new products and solutions for various industries, such as the automotive industry and topics such as drone defense.

Overall, mechanical engineers in Germany and Trumpf in particular are facing challenging times. When looking for solutions, companies must follow creative and flexible approaches in order to meet changing conditions.