Manz AG: Strongest quarterly revenue in the company's history confirms impressively successful diversification

14.08.2014 | Reutlingen

  • Q2 2014, with more than EUR 109 million, strongest quarterly revenue in company's history
  • Revenue growth up by 19 %, compared with H1 2013, to EUR 164 million
  • Positive EBIT and consolidated profit, at EUR 1.2 million and EUR 0.2 million, despite continuing high investment in the Solar division
  • Continued outstanding order backlog of over EUR 100 million

Manz AG, one of the world’s leading high-tech engineering companies with an extensive technology portfolio covering the three strategic divisions of "Display", "Solar" and "Battery", has today published its figures for the first half of 2014. Revenues of over EUR 109 million and around EUR 164 million, respectively, enabled Manz to post the highest revenue in the company's history both for a quarter and a half of the year. At the same time, Manz AG succeeded in counterbalancing the expectedly weak development in the first quarter, generating positive earnings before interest and taxes (EBIT) of EUR 1.2 million for the full reporting period. In view of orders on hand of over EUR 100 million as of June 30, 2014 and the continuing good prospects in the Display and Battery divisions for the second half of 2014, the Managing Board has specified its forecast for 2014 as a whole.

Dieter Manz, founder and CEO of Manz AG, comments: "Since the beginning of the year, we have been witnessing increasing business momentum. The revenues we generated in the second quarter, at over EUR 109 million, were higher than ever before in a quarter. In addition, we achieved our most important target by returning to the black, despite continuing high investment in the further development of future technology in the Solar division." This was due to the high level of incoming orders in the first quarter of 2014, with the Display segment accounting for the lion's share.

In the first half of 2014, Manz AG generated revenues of EUR 163.6 million, following EUR 137.8 million in the same period in the previous year. Total operating revenue amounted to EUR 161.6 million, following EUR 148.0 million in the first half of 2013. The most important earnings parameter, earnings before interest, taxes, depreciation and amortization (EBITDA), at EUR 13.2 million, was, as expected, below the prior-year level (H1 2013: EUR 15.7 million). The main impact here was attributable to the discontinuation, since the beginning of the year, of funds of EUR 3.0 million received from Würth Solar as part of the agreement to acquire the location in Schwäbisch Hall. Despite this additional burden whilst continuing fully with the research operation, and a loss-making first quarter in 2014, the company again showed positive earnings before interest and taxes (EBIT) of EUR 1.2 million at the end of the first half of 2014 (H1 2013: EUR 3.8 million). Consolidated net profit stood at EUR 0.2 million (H1 2013: EUR 0.2 million).

In terms of divisions, the Display segment accounted for the largest revenue share in the first half of 2014, contributing EUR 113.0 million (H1 2013: EUR 84.8 million). This is due, in particular, to the successful transfer of the Manz technology portfolio to applications for the production of mobile end devices, such as smartphones and tablet PCs. The Solar division generated around EUR 6.3 million in the first six months of 2014, compared with EUR 4.7 million in the same period in the previous year. The Battery division contributed EUR 6.4 million to Group revenues through sales of equipment for producing lithium-ion batteries (H1 2013: 4.9 million). The PCB/OEM reporting segment was responsible for EUR 29.9 million (H1 2013: EUR 33.7 million). The Others reporting segment accounted for the remaining revenues totaling EUR 7.9 million (H1 2013: EUR 9.6 million).

The company acquisition in the Battery division enabled Manz AG to open up the market for consumer electronics, in addition to the observed market for e-mobility and stationary power storage, and obtained, as early as June 2014, the largest single order so far in this division. In this connection, the Managing Board assesses the opportunities for short-term follow-on orders as being promising. In view of this and Manz AG's extremely good positioning on the Display market, Dieter Manz provides the following summary: "We have a number of promising projects in the pipeline and see additional potential in the Battery and Display divisions. We are also noticing a slight upturn in demand in the Solar division and continue to pursue the objective of selling our first fully integrated production line for the manufacture of CIGS thin-film solar modules, the Manz CIGSfab. The chances of this happening are better than ever. We are accordingly optimistic about development in the second half of 2014." The Managing Board has specified its forecast for 2014 as a whole and expects revenues of between EUR 280 million and EUR 300 million along with a positive EBIT. Selling a CIGSfab is not yet included in this forecast and would have a corresponding positive impact on the revenue and earnings situation of the company.

The full report for the first six months of 2014 is available for download here.