TABLE OF CONTENTS
02 Letter to Shareholders
04 Global Locations
05 Product Brands
08 Financial Highlights
10 Eleven-Year Financial Data
12 Corporate Information, Leadership Team
13 Form 10-K
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REPORT TO SHAREHOLDERS
2024 was a transformative year for Hurco Companies, marked both by challenges and opportunities as we navigated an uncertain and shifting manufacturing landscape. While we experienced an industry decrease in demand and a delay in the timing of our cyclical recovery, we responded with decisive actions to position the company for future growth. This included implementing cost cutting measures, rationalizing our global sales strategy, and bringing in new leadership talent to drive our brands forward. These proactive measures, combined with our focus on integrating advanced technologies, such as artificial intelligence (AI), automation, and autonomous manufacturing, have reinforced our position as a global leader in the machine tool industry. These efforts reflect our dedication to delivering exceptional value to our customers and creating sustainable growth for our shareholders.
The 2024 International Manufacturing Technology Show (IMTS) provided an ideal platform to showcase our latest advancements and product offerings, such as the Hurco TM8MYi lathe, the Takumi UA400 machining center, and Milltronics' first true 5-axis mill, the VM250IL-5X. We introduced our next-generation Hurco control system, designed with a fully customizable interface and ergonomic features that redefine simplicity and operator ease-of-use. Integrated with AI tools like ChatCNC® and AI Feature Recognition, this system drastically reduces programming time while simplifying complex tasks, ensuring unparalleled productivity gains for our customers. These advancements reflect our unique capability as a vertically integrated company, enabling us to develop, test, and implement cutting-edge technologies seamlessly across our machines, software, and controls. This ensures that Hurco remains at the forefront of innovation and delivers value-driven solutions to our customers.
Our advancements and partnerships in automation this year further demonstrated our commitment to flexibility and connectivity on the shop floor. For example, we have seamlessly integrated automated machine-tending solutions into the Hurco control system, including the ProCobots collaborative robot from Universal Robots and the industrial robot from Kawasaki Robotics. These solutions address critical
and pervasive challenges, such as labor shortages, while providing efficient automation capabilities that enhance productivity across manufacturing environments.
Looking to the future, our vision for autonomous manufacturing aligns with the principles of Industry 5.0, where intelligent systems
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collaborate with human operators to achieve optimal productivity. Our focus on AI-driven feature detection, operation sequencing, and process control is paving the way for smart, self-regulating systems that transform the manufacturing floor. While fully autonomous machining remains a long-term goal, we are committed to commercializing incremental advancements that deliver immediate benefits, ensuring that our customers experience measurable productivity gains today, tomorrow, and for years to come.
Hurco's progress would not be possible without the dedication of our people. We have continued to invest in talent development, fostering partnerships with universities and research institutions to attract top talent and provide opportunities for growth and collaboration. The expertise and passion of our employees fuel the innovation that drives Hurco forward, and we remain committed to nurturing this cornerstone of our success.
As we prepare to meet the demands of an evolving industry, our innovation pipeline remains robust, with solutions that enhance productivity and profitability for our customers while delivering long-term value to our shareholders.
As we move forward, I want to thank you, our shareholders, for your continued confidence and trust in Hurco. On behalf of the Board of Directors, our management team, and our employees, I am excited to build on this year's achievements as we lead the industry into a new era of intelligent manufacturing solutions. Together, we are shaping the future of manufacturing with unwavering dedication to innovation and operational excellence.
Sincerely,
Greg Volovic
President and CEO
Gregory S. Volovic
President and Chief Executive Officer
Sonja McClelland
Executive Vice President, Treasurer and
Chief Financial Officer
Michael Doar
Executive Chairman
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GLOBAL LOCATIONS
2 | 4 | 5 | 8 | |
6 | ||||
7 | 9 | |||
1 | 10 | |||
3 | ||||
12 | 11 | |||
13 |
1. | 2. |
HURCO COMPANIES, INC. | |
Indianapolis, IN | BRAUN MACHINERY |
Hurco North America | |
Serving the USA, Canada, Mexico, and South America | Grand Rapids, MI |
Takumi USA, ProCobots | A division of Hurco |
Serving the USA | North America. |
Serving Western | |
MILLTRONICS | Michigan. |
Indianapolis, IN |
3.
MACHINERY SALES CO. City of Industry, CA
A division of Hurco
North America.
Serving Southern
California.
4. | 7. | |||||
HURCO EUROPE LTD. | HURCO WERKZEUGMASCHINEN | |||||
(United Kingdom) | GmbH (Germany) | |||||
United Kingdom, Ireland, | Germany, Austria, Belarus, | |||||
Africa, the Middle East, | Bosnia-Herzegovina, Bulgaria, | |||||
and Scandinavia | Croatia, the Czech Republic, | |||||
5. | Hungary, Latvia, Lithuania, | |||||
Mazedonia, Montenegro, the | ||||||
MILLTRONICS EUROPE | Netherlands, Portugal, Romania, | |||||
B. V. | ||||||
Russia, Serbia, Slovakia, | ||||||
(The Netherlands) | ||||||
Slovenia, Switzerland, Turkey, | ||||||
6. | ||||||
and Ukraine |
HURCO S.A.R.L. (France)
France and Belgium
4 (Wallonia)
8. | 11. | |
HURCO SP. Z O.O. (Poland)
9.
HURCO S.R.L.
LCM PRECISION TECHNOLOGY S.R.L. (Italy)
10.
NINGBO HURCO TRADING CO., LTD.
(Shanghai, China)
NINGBO HURCO MACHINE TOOL CO., LTD.
(Ningbo, China)
TAKUMI PRECISION CO., LTD. (Taiwan)
HURCO MANUFACTURING LTD. (Taiwan)
Manufacturing Limited: manufacturing and assembly of Hurco, Milltronics,
and Takumi machine tools.
HURCO AUTOMATION LTD. (Taiwan)
Automation Limited: manufacturing and assembly of Hurco and Milltronics controls.
12.
HURCO INDIA PRIVATE LTD.
Serving India, Pakistan, Bangladesh, and Sri Lanka
13.
HURCO S.E. ASIA PTE. LTD. (Singapore)
Serving Australia, Indonesia,
Malaysia, Myanmar,
Philippines, Singapore,
South Korea, Thailand, and
Vietnam
PRODUCT BRANDS
MIND OVER METAL - Hurco CNC machines are powered by proprietary technology that increases customer productivity and profitability. We provide customers with reliable machine tools equipped with sophisticated technologies that simplify complex processes. The integrated Hurco control is the most versatile in the industry, supporting both industry standard programming and conversational programming.
Beyond Expectations. ™
BEYOND EXPECTATIONS - Milltronics CNC machines are equipped with an interactive computer control system that is compatible with G-codes and M-codes generated from CAD/CAM software and conversational visual-aid programming. The Milltronics brand includes product lines of general purpose CNC mills and lathes. The Milltronics line is designed for excellent value with more standard features for the price versus other brands.
When Precision MattersTM
WHEN PRECISION MATTERS - Takumi CNC machines
are designed and built for high-efficiency milling and high-level precision. Equipped with control systems such as Fanuc® and Heidenhain®, we have adapted the world's most used controls to our rugged, durable machines to help manufacturers achieve higher productivity through speed, accuracy, and reliability.
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PRODUCT BRANDS
UNLEASH EFFICIENCY - ProCobots provides automation solutions for high-mix/low-volume production. Designed to be easy to use, safe, and flexible, ProCobots solutions are standardized systems that automate redundant processes. ProCobots systems include robots, grippers, material handling, and Industry 4.0-capable software and controls. ProCobots has multiple lines of flexible cell solutions and portable systems in addition to a variety of automation peripherals.
With several patents pending, the automation software features provide our customers with complete integration between the Hurco control and the ProCobots automation system.
Automatic Job Setup
61% increase in overall unit sales from 2023 | |||||||||||||||
38% | |||||||||||||||
100% of unit sales were in the US market from 2019-2023 | |||||||||||||||
2019 | 2020 | 2021 | 2022 | 2023 | 2024 | ||||||||||
European market | |||||||||||||||
was Acquired | sales began |
LCM designs and manufactures advanced components for machine tools, such as rotary tables, tilt tables, swivel heads, and electro-mechanical spindles.
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At IMTS 2024, Hurco's expanded 16,000-square-foot booth attracted an abundance of visitors, showcasing our leadership in CNC technology and control systems, and ability to meet the evolving needs of manufacturers.
FINANCIAL HIGHLIGHTS
2024 | 2023 | |||
Sales and service fees | $ | 186,584 | $ | 227,807 |
Operating income (loss) | $ | (8,286) | $ | 6,616 |
Net income (loss) | $ | (16,608) | $ | 4,389 |
Earnings (loss) per | $ | (2.56) | $ | 0.66 |
common share (diluted) | ||||
Order intake | $ | 198,302 | $ | 209,676 |
Working capital | $ | 180,788 | $ | 193,257 |
Total debt | $ | - | $ | - |
Shareholders' equity | $ | 207,172 | $ | 222,231 |
Number of employees | 688 | 716 | ||
Closing stock price as of October 31 | $ | 21.01 | $ | 20.00 |
Stock price range for the Fiscal Year | ||||
High | $ | 28.20 | $ | 30.41 |
Low | $ | 14.83 | $ | 19.59 |
(Dollars in thousands except per share data and number of employees)
Sales + Service Fees (In Thousands)
70,000 | 66,105 | |||
60,000 | 54,682 | 53,819 | 53,201 | 53,702 |
50,000 | 45,059 | 45,172 | 42,651 | |
40,000 | ||||
30,000 | ||||
20,000 | ||||
10,000 | ||||
0 | ||||
Q1 | Q2 | Q3 | Q4 | |
2023 | 2024 |
2024 TOTAL
Total Sales + Orders
SALES: 186,584
ORDERS: 198,302
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