Manz AG: Record revenue for 2014 already assured after 9 months

13.11.2014 | Reutlingen

  • Revenues of over EUR 250 million after 9 months are 18% above the previous year
  • Positive EBIT of EUR 1.5 million despite ongoing high investments in the solar sector
  • Guidance 2014 with record revenue confirmed

Manz AG, one of the world's leading high-tech equipment manufacturers with an extensive technology portfolio in the three strategic business segments "Display", "Solar" and "Battery", today announced the figures for the first nine months of 2014. The company based in Reutlingen/Germany, already recorded the highest quarterly revenue in the company's history during the second quarter of 2014 and has successfully continued this positive trend in the third quarter. With EUR 87.3 million, revenue was about 16% higher than in the corresponding quarter of the previous year. Total revenue from the first three quarters of 2014 amounted to EUR 250.9 million. At the same time, Manz again generated a positive operating result (EBIT) in the third quarter of 2014 despite high investments in further solar technology development. The EBIT amounted to EUR 1.5 million for the entire period under review. The operative result was below the previous year, due to canceled appropriations amounting to 4.5 million EUR with regard to the development site for CIGS thin film solar technology that was taken over in Schwäbisch-Hall. Nonetheless, with a projected record revenue of EUR 280 million to EUR 300 million and a positive EBIT for the overall 2014 year, Manz AG's company strategy of continued diversification has been validated.

Dieter Manz, founder and CEO of Manz AG, comments: "We have further anchored our outstanding reputation as a reliable industry-partner for the development of innovative production systems for growth markets. This is also reflected in the good order and revenue trend in our strategic business areas since the start of the year. Correspondingly, we have a clear outlook on our goal, record revenue and a positive EBIT for 2014."

In addition, the company also has excellent opportunities for dynamic development in the three target sectors of display, solar and battery, that reach beyond the current business year. Dieter Manz: "Interest in our solutions from the display sector remains high. The solar industry is in an upswing - albeit at the same low level. The persistently high growth in the retail market will lead to more investments in production systems and thereby to strong increasing revenue. With the takeover in the battery segment in the second quarter of 2014 and the first large orders of production systems for the manufacturing of lithium-ion batteries for consumer electronics, we have created the requirements in order to raise this segment to a new revenue level. In view of all this, I am convinced of Manz AG's medium and long-term company success."

During the first nine months of 2014, Manz AG generated revenue of EUR 250.9 million after EUR 213.0 million in the same period in the previous year. The operating revenue was EUR 250.4 million after EUR 218.3 million in the 2013 reporting period. The most important earnings parameter, earnings before interest, taxes, depreciation and amortization (EBITDA), with EUR 19.6 million, was, as expected, below the prior-year level (9M 2013: EUR 23.3 million). The main impact here was attributable to the discontinuation, since the beginning of the year, of funds of EUR 4.5 million received from Würth Solar as part of the purchasing agreement of the location in Schwäbisch Hall. Adjusted by this effect, an operative result slightly above that of the previous year was achieved. Despite this additional burden with simultaneous unrestricted continuation of research operations in all business areas, the result were earnings before interest and taxes (EBIT) amounting to 1.5 million EUR for the first nine months of 2014 (9M 2013: EUR 5.2 million). The consolidated net profit was at EUR -0.8 million (9m 2013: EUR 0.4 million).

In terms of divisions, , the largest share of revenue during the first nine months of 2014 was allocated in the Display segment with EUR 179.9 million (9M 2013: EUR 139.3 million). Based on an industry-overlapping technology transfer, this is mainly due to the successful development of innovative production solutions for the production of smartphones and tablet computers. The Solar segment generated about EUR 9.3 million in the first nine months of 2014 compared to EUR 7.5 million in the same period in the previous year. The Battery segment contributed EUR 12.2 million from the sale of lithium-ion battery production systems (9M 2013: EUR 7.4 million). The reporting segment of printed circuit boards/OEM generated a turnover of EUR 38.9 million (9M 2013: EUR 45.5 million). The rest of revenue amounting to EUR 10.6 million consisted of the Others reporting segment (9M 2013: EUR 13.4 million).

With an order backlog of EUR 50.9 million by September 30, 2014, the Management Board confirmed the guidance and expects revenues between 280 million EUR and 300 million EUR with a positive EBIT. A short-term possible sale of a CIGSfab is not taken into account herein and offers additional upside potential.

The complete 9-month report for 2014 is available for download here.