DGAP-Adhoc: Mikron Holding AG: Mikron benefits from demand from the medical devices and pharmaceutical industries
Mikron Holding AG / Key word(s): Final Results
10.03.2014 07:00
Release of an ad hoc announcement pursuant to Art. 53 KR
---------------------------------------------------------------------------
Media release on Annual Report 2013
Mikron benefits from demand from the medical devices and pharmaceutical
industries
Biel, 10 March 2014, 7.00 a.m. The Mikron Group increased both sales and
order intake slightly, compared to the previous year. The order backlog
rose by 12%. However, with EBIT of CHF 5.2 million (2.2% of sales), the
Group fell well short of its earnings target. On the basis of the
significantly lower net earnings of CHF 2.4 million (prior year: CHF 8.5
million), the Board of Directors will be proposing to the Annual General
Meeting a distribution from capital reserves of CHF 0.10 per share (prior
year: CHF 0.15 per share). In 2014 Mikron is expecting a further slight
increase in sales and a significant improvement in EBIT margin.
The Mikron Group increased its annual sales by 2% to CHF 241.1 million
(prior year: CHF 235.3 million). The Automotive business segment increased
sales by an impressive 15% to CHF 116.8 million (prior year: CHF 101.2
million). By contrast, following a difficult third quarter, the Machining
business segment suffered a decline in sales of 7% to CHF 125.2 million
(prior year: 134.3 million). Europe remains the dominant geographic market
for Mikron, accounting for 75% of all sales. In the medical devices and
pharmaceutical industries, global demand held up well. By contrast, order
volumes from the automotive industry developed sluggishly. The one ray of
light in this respect was the resurgence in demand from the US automotive
industry towards the end of the year. As expected, the order intake from
the Swiss watchmaking industry mirrored the level of the prior year. Demand
from China was disappointing for both business segments. Given these
circumstances, the fact that the Machining business segment managed to
increase its order intake by 2% should be viewed in a positive light. The
same is true of the order intake of the Automation business segment, which
rose by 8% in a year-on-year comparison. Overall, the Group increased its
order intake to CHF 246.4 million (prior year: 236.3 million, +4%).
Profitability
With an EBIT figure of CHF 5.2 million (2.2% of sales), Mikron Group fell
well short of the prior-year result, as well as its own target. The key
factors were extra costs incurred in connection with a comprehensive
project in the Automation business segment, the insufficient capacity
utilization of our production sites in Asia, and the lack of orders for
Mikron Machining in the first half of the year. Another negative factor was
a number of quality problems at isolated suppliers. As a result of the
photovoltaic business developing less strongly than expected, Mikron
Automation also had to book a non-recurring impairment on patents amounting
to CHF 2.3 million. This led to an EBIT loss for the Automation business
segment of CHF 4.6 million (prior year loss: CHF 1.6 million). The
Machining business segment reported EBIT of CHF 6.2 million (prior year:
CHF 9.9 million). This equates to an EBIT margin of 5.0%, which is
respectable in view of the sharp decline in sales.
Net earnings and shareholders' equity
After factoring in the financial results and income taxes, Mikron's net
earnings for 2013 amounted to CHF 2.4 million (prior year: CHF 8.5
million). The equity ratio is a solid 66%.
Cash flow
Despite generating lower earnings, the Mikron Group reported operating free
cash flow of CHF 5.2 million for 2013. Cash flow from operating activities
proved sufficient to finance the Group's investments, which were channelled
into production equipment and communication infrastructure in particular.
The Mikron Group continues to be very robustly financed. The net cash
position (cash and cash equivalents plus current financial assets less
interest-bearing liabilities) as at December 31, 2013 amounted to CHF 32.3
million. Accordingly, Mikron remains essentially debt-free.
Outlook
We are not expecting any fundamental changes to the economic environment of
the Mikron Group in 2014. This is particularly true of European markets, as
there is still no sign of any significant recovery in the markets of
southern Europe. The outlook for the US remains positive. We are expecting
a general market improvement in Asia, particularly in China. As a result of
the healthy order backlog at the start of the year and the anticipated
stable economic development when viewed in overall terms, we are expecting
a further slight increase in sales in 2014 and a significant improvement in
EBIT margin.
Key figures for the Mikron Group in 2013
2013 2012 +/-
CHF million (except number of employees)
Order intake 246.4 236.3 4.3%
- Machining 125.8 123.6 1.8%
- Automation 121.8 113.0 7.8%
Net sales 241.1 235.3 2.5%
- Machining 125.2 134.3 -6.8%
- Automation 116.8 101.2 15.4%
Order backlog 122.4 109.5 11.8%
- Machining 57.6 51.2 12.5%
- Automation 65.1 58.3 11.7%
Number of employees 1,109 1,093 1.5%
- Machining 534 535 -0.2%
- Automation 572 554 3.2%
EBIT 5.2 11.2 -53.6%
- Machining 6.2 9.9 -37.4%
- Automation -4.6 -1.6 n.a.
Profit for the year 2.4 8.5 -71.8%
Operating cash flow 10.6 9.8 8.2%
Balance sheet total 232.1 231.1 0.4%
Equity ratio 66.1% 66.2% -0.1%
Publication of annual results for 2013
The annual results will be published at the same time as this media release
in the form of the 2013 Annual Report: www.mikron.com/reports
---------------------------------------------------------------------------
Information and Explaination of the Issuer to this News:
Brief profile of the Mikron Group
The Mikron Group markets machining and automation solutions, enabling
customers around the world to master their precision manufacturing
processes. Rooted in a culture of Swiss innovation, Mikron is a leading
supplier to the automotive, medical devices, pharmaceutical, consumer
goods, writing instruments and watch-making industries. The two divisions,
Mikron Automation and Mikron Machining, are based in Boudry and Agno,
Switzerland, with additional production facilities in Germany, Singapore,
China and the United States. The Mikron Group employs approximately 1,100
people who work to provide Mikron customers with an experience that
reflects over 100 years of leadership in high-performance and
high-precision production. Mikron Holding AG is listed on SIX Swiss
Exchange (MIKN).
Contact
Mikron Management AG, Martin Blom, CFO Mikron Group
Phone +41 62 916 69 60, ir.mma@mikron.com
Download Media Release
www.mikron.com/news
Investor Relations Calendar of Events
8 April 2014, 4.00 p.m. - Annual General Meeting 2014, Biel
22 July 2014, 7.00 p.m. - Media release: Semiannual results 2014
Except for the historical information contained herein, the statements in
this media release are forward-looking statements that involve risks and
uncertainties.
Mikron(R) is a trademark of Mikron Holding AG, Biel (Switzerland).
10.03.2014 News transmitted by EQS Schweiz AG.
The issuer is responsible for the contents of the release.
EquityStory publishes regulatory releases, media releases on the capital
market and press releases.
The EquityStory Group distributes authentic and real-time financial news
for over 1'300 listed companies.
The Swiss news archive can be found at www.equitystory.ch/news
---------------------------------------------------------------------------