Manz AG puts solar crisis behind: revenue growth and significant EBIT improvement in Q1 2013

05/08/2013 09:30:00 CEST

  • Continued positive trend in Display and Battery segments more than offsets weak revenue trend in Solar segment
  • Revenue up by around 13%, from EUR 44.1 million to EUR 49.8 million
  • Positive earnings trend: EBIT of EUR -1.4 million after EUR -4.9 million in Q1 2012
  • Overall positive EBIT anticipated by 2013 half-year stage
  • Current order backlog of around EUR 142 million: highest level since 2 ½ years

Manz AG, one of the world's leading high-tech engineering companies with an extensive technology portfolio in its three strategic segments "Display", "Solar" and "Battery", has today published its results for the first quarter of 2013. Manz continued its positive trend during the first three months of its current financial year in its two segments Display and Battery, which more than offset the continued weak new order intake situation in its Solar segment. Manz AG especially benefited in this context from successful cross-sector technology transfer and the continued dynamic market trend in the display sector. Considered together with the currently very high order book position of EUR 142 million, this underscores the now minor significance of the Solar segment for the success of Manz AG. With a share of only 2.3% of the current order backlog the Solar segment does not bear any risks any more for Manz AG. Instead the expected increase of the willingness to invest in the PV industry offers additional growth opportunities. Overall, revenue in the reporting period grew to EUR 49.8 million (previous year: EUR 44.1 million). Also the measures to structure- and cost-optimization that were launched in the second half of 2012 are generating their first positive effects. As a result operating earnings before interest and tax (EBIT) improved significantly year-on-year from EUR -4.9 million to EUR -1.4 million. Especially in comparison to the last quarter 2012 revenue and earnings of Manz AG also increased markedly. Moreover, an additional positive effect can be expected in the second quarter 2013 due to the fact, that the majority of the orders received at the end of the last year 2012 will be reflected in revenue and earnings of this period.

Dieter Manz, CEO and founder of Manz AG, summarises the first quarter as follows: "We are very satisfied with current business trends overall. We have continued to register very dynamic growth in our Display and Battery segments due to further demand growth on the end-customer market and industry's correspondingly high degree of willingness to invest in new production equipment. This is also reflected in our current order backlog of around EUR 142 million, which is as high as the level last seen in the third quarter of 2010. Together with first-quarter revenue, we are now already above the revenue level of the full 2012 year. Our cost optimization efforts are also taking effect. Although we are still reporting a loss at the EBIT level, we nevertheless identify significant progress towards our goal of returning to sustainable profitability. We anticipate that our high order book position and cost optimisation will significantly impact second-quarter earnings, and that we will report a profit at the EBIT level overall in the second half of 2013."

In terms of segments, the largest share of revenue of EUR 28.3 million was attributable to the Display segment (previous year: EUR 21.4 million), representing 32.4% year-on-year growth. Manz achieved revenue of EUR 1.9 million through the sale of lithium-ion battery production equipment, a 64.0% increase compared with the previous year's EUR 1.1 million. Only EUR 3.1 million of revenue was still attributable to the Solar segment (previous year: EUR 11.7 million). The two reporting segments of PCB/OEM and Others generated a further EUR 16.6 million of revenue (previous year: EUR 10.0 million). After taking into account the financial result, the company generated a pre-tax loss (EBT) of EUR -2.1 million (previous year: EUR -5.2 million). The Group incurred a consolidated net loss of EUR -3.0 million (previous year: EUR -5.4 million), representing a EUR -0.66 net loss per share (previous year: EUR -1.20 net loss per share).

Dieter Manz also takes a very positive view of the full 2013 year: "Our high order backlog and the excellent market prospects in the Display and Battery areas form an excellent basis for sustainable growth during the current 2013 financial year. We also identify additional potential in our Solar segment, where we will consistently exploit the opportunities on offer to us. Overall, this prompts us to confirm our forecast of achieving a clear double-digit percentage revenue growth and profit at the EBIT level in 2013."

The full report for the first quarter of 2013 can be downloaded from the company's website at within the "Investor Relations" Area.

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