23 July2020Mikron with drop in demand from the automotive industry and good performance in pharmaceutical and medical technology
Mikron with drop in demand from the automotive industry and good performance in pharmaceutical and medical technology
Biel, July 23, 2020, 7:00 a.m. –
At CHF 125.7 million, the Mikron Group's order intake for the first half of 2020 is well below the corresponding figure for the first half of 2019 (CHF 163.9 million). The order backlog stands at CHF 155.0 million (June 30, 2019: CHF 183.3 million, -15.4%), while sales declined from CHF 176.8 million in the first half of 2019 to CHF 121.3 million (-31.4%).
With a 50% share of sales, Europe (including Switzerland) remained the Mikron Group's principal sales market in the first half of 2020. Sales here fell by 39% compared with the first half of 2019. Sales in the USA rose by 9% compared with the first half of 2019, while sales in Asia fell by 52%.
Due to the significant drop in sales in the Mikron Machining Solutions business segment and the lack of volume at the Berlin site in the Mikron Automation business segment, the Group's EBIT (before restructuring costs) of CHF -5.7 million in the first half of 2020 was significantly lower than in the first half of 2019 (CHF 7.5 million). The Automation business segment, whose results are strongly negatively impacted by the Berlin site, posted EBIT (before restructuring costs) of CHF 2.9 million (first half of 2019: CHF 6.4 million). EBIT before restructuring costs for the Mikron Machining Solutions business segment, at CHF -9.0 million, was also well below the corresponding prior-year figure (first half of 2019: CHF 1.7 million). After restructuring costs of CHF 15.9 million, which include the sale of the Berlin and Kaunas sites and capacity adjustments in Agno and Rottweil, Group EBIT stands at CHF -21.6 million. Loss for the first half of 2020 is CHF -24.0 million (profit for first half of 2019: CHF 4.7 million).
Outlook
A forecast for the second half of the year is very difficult to make due to the unpredictable development of the corona pandemic, the general uncertainty in the automotive industry and in view of general political risks. Mikron expects business in the pharmaceutical and medtech industries market segment to remain good. However, Mikron does not anticipate a rapid recovery in demand from the automotive industry, with the result that the second half of the year is also expected to show an EBIT loss on a par with the first half (before restructuring costs). The expected restructuring costs have been fully recognized in the half-year financial statements, so that the second half of the year will not be affected.
Key Figures for the Mikron Group in the first half year 2020
1.1.–30.6.20
1.1.–30.6.19
+/-
CHF million 1)
Order intake
125.7
163.9
-23.3%
- Machining Solutions
37.2
75.2
-50.5%
- Automation
88.5
88.8
-0.3%
Net sales
121.3
176.8
-31.4%
- Machining Solutions
47.3
83.6
-43.4%
- Automation
74.1
94.1
-21.3%
EBIT 2) before restructuring costs
-5.7
7.5
n.a.
EBIT 2)
-21.6
7.5
n.a.
Loss/profit
-24.0
4.7
n.a.
Operating cash flow
8.4
-12.0
n.a.
30.6.20
30.6.19
+/-
Order backlog 2)
155.0
183.3
-15.4%
- Machining Solutions
28.9
60.8
-52.5%
- Automation
126.2
122.3
3.2%
Number of employees 2)
1,361
1,465
-7.1%
- Machining Solutions
655
704
-7.0%
- Automation
678
732
-7.4%
30.6.20
31.12.19
+/-
Balance sheet total
266.2
289.5
-8.0%
Equity ratio
54.6%
58.5%
-3.9%
1) Except number of employees and equity ratio
2) Alternative performance measures, see Mikron semiannual report 2020, page 19.
Publication of semiannual results for 2020
The semiannual results will be published at the same time as this media release in the form of the 2020 Semiannual Report: www.mikron.com/reports
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